Government to provide financial support to supply domestic demand for medical products


“Making medicine and medical products independent from foreign countries is one of the main objectives of the Government of Mongolia and companies and entities which run operations in the health sector,” said Prime Minister Ch.Saikhanbileg during the weekly Cabinet meeting Hour of Solutions.
He went on to say that the government would operate under state policy to produce at least 50 percent of the medical products used domestically by providing financial support to companies producing them, and added that one of the options to diversify the country’s economy is the production of medicine and medical products.
During the meeting, hosted every Wednesday by the Cabinet, the Prime Minister reviewed his visit to the newly opened Enkhiin Shuuder factory, which is producing intravenous fluids. Founded by five domestic medical companies, the Enkhiin Shuuder factory was established with an investment of seven billion MNT, with 5.5 billion MNT provided as a loan from Chinggis Bond funds. According to one of founders, President of Monos Group L.Khurelbaatar, the factory has received its first export orders. He asked the cabinet ministers to permit a loan of three billion MNT, the amount required to improve the factory’s circulation.
“National security policy supports producing up to 50 percent of medicine and medical products nationally. Meanwhile, we are producing only 17 percent of domestic medical demand in the country,” L.Khurelbaatar pointed out, and said that if the government would issue a soft loan of around 30 billion MNT, the factory’s capacity would be enhanced to produce up to 40 percent of domestic demand.
The Prime Minister thanked the authorities of the five pharmaceutical companies who founded the new medicine factory, and underlined that it was a new phenomenon for five giants in one sector to collaborate to open such a factory, under one purpose and under one structure. He emphasized the need for such teamwork, unity, and integrity of goals in other sectors.
Noting that Mongolia has a bright future in supplying domestic demand and exporting medical products overseas, Ch.Saikhanbileg assigned Industry Minister D.Erdenebat with developing policy to provide support for supplying domestic demand and to arrange the export of Mongolian-made medical products.
He promised that the government would discuss the financing of 30 billion MNT to support the pharmaceutical sector, and said that the Cabinet will make a final decision on the issuance of capital in the near future, as the factory has already been built, strengthening the market.
Concluding the meeting, Minister D.Erdenebat mentioned that the ministry is consulting with companies and entities on directions to export their products, and noted that the ministry would assist in resolving financing if an entity was manufacturing products for export.

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Posted by on Jan 29 2016. Filed under Politics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

1 Comment for “Government to provide financial support to supply domestic demand for medical products”

  1. Mongolia has the highest markup on medical products in the world, leaving many Mongolians suffering without a chance to buy medicine. A few companies hold a monopoly on the import and wholesale. The Government should look into this and act appropriately!

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