Government Moves to Transform State-Owned Enterprises into Public Companies

At its extraordinary meeting on December 15, 2025, the Cabinet of Mongolia approved key economic reform measures, including submitting the draft Law on Economic Freedom to Parliament

The draft law aims to guarantee the right of citizens and legal entities to conduct business, protect property rights, reduce excessive state intervention, and improve the investment climate. It also addresses restrictions imposed by more than 40 existing laws affecting foreign investment. Related amendments to the Investment Law and other legislation will be submitted alongside the draft law.

The Cabinet also discussed guidelines for the privatization and restructuring of state-owned enterprises. Under the proposal, 10–66 percent of shares in 18 SOEs across sectors such as aviation, energy, finance, mining, insurance, and trade will be offered to the public through the stock exchange, transforming them into publicly listed companies.

In addition, eight SOEs are planned for full privatization, seven will be merged or restructured, and organizational reforms will be implemented. As a result, the total number of state-owned enterprises will be reduced by 19, or 18.8 percent, bringing the total to 82 entities.