New approaches to the development of medium-sized businesses were considered at a meeting with the leadership of the central government agencies and Atameken NCE, chaired by Prime Minister Alikhan Smailov.

The first Deputy Minister of the National Economy Timur Zhaksylykov reported that as of March 1, 2023, there were 2 910 operating medium-sized enterprises (SME) with the share in GDP at the level of 6.3% in the republic. These enterprises provide jobs for about 380 thousand people.

At the opening of the first session of the Parliament of the VIII convocation the Head of State set the task to increase the competitiveness of medium-sized businesses in the coming years. In this regard, the Ministry of National Economy proposed measures to simplify regulatory procedures for joint ventures, including public procurement, tax incentives, increased investment activity, reducing the administrative burden and expanding support for medium-sized businesses.

Prime Minister approved these approaches and stressed the importance of active involvement of the business community in the development of new initiatives.

"We will need to work well with these proposals and first of all with the proposals of the business itself. We will study them carefully and make necessary changes in the legislation as well as in the sectoral programs of state bodies," Smailov said.

According to Minister of Industry and Infrastructural Development Marat Karabayev, there are currently 501 enterprises in the manufacturing industry related to medium-sized businesses. To stimulate their development and the creation of new projects is proposed through the launch of small industrial zones, providing internships for domestic engineering and technical workers at foreign plants, the activation of deep processing of basic raw materials, etc.

It was noted that Kazakhstan has the potential to localize goods, works and services at more than 10 trillion tenge, some of which can be produced and provided by medium-sized businesses. To give an impetus to this direction, it is planned to expand the list of domestic production customers, as well as to develop mechanisms for long-term and off-take contracts with backbone and quasi-state companies.

Raimbek Batalov, the Chairman of the Presidium of Atameken NCE, also voiced his proposals at the meeting. In particular, he presented the possibilities of digital monitoring of investment projects, spoke about the benefits of strengthening measures of state support of priority sectors of regional development, and also denoted the need to actively engage domestic entrepreneurs in the implementation of large-scale projects funded by the budget.

Summing up the discussion, Prime Minister noted that in the light of the instructions of the Head of State it was time to attach particular importance to the development of medium-sized businesses.

"We need to provide tax, administrative and other incentives in all areas, so that medium-sized businesses would grow stronger. This will help to increase employment and social protection of employees of these enterprises, to increase transparency and in general to develop and diversify our economy," Alikhan Smailov emphasized. 

He also noted the necessity of finalizing the complex program of supporting medium business and envisaging the possibility of its integration into the Concept of Small and Medium Businesses Development until 2030 by the end of August.

"The document must meet all expectations of business. It is necessary to actively involve business, the expert community, members of Parliament and representatives of local executive bodies and the Presidential Administration in this work. It is important to develop new approaches together, to build priorities, aimed at quality development of medium business," the Prime Minister concluded.

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #SME