Round table in the Majilis of the Parliament of Republic of Kazakhstan on the topic: «The role of «Samruk-Kazyna» JSC in the implementation of the strategy «Kazakhstan - 2050»»
Today a round table on the topic: «The role of «Samruk-Kazyna» JSC in the implementation of the strategy «Kazakhstan - 2050» took place in the Majilis (Lower house) of the Parliament of Kazakhstan. Deputies of the Majilis –who are also members of the Committees on Finance and Budget & Economic Reform and Regional Development; the top management of «Samruk-Kazyna» JSC; heads of the Fund’s portfolio companies; representatives of the Advisory Board of «Samruk-Kazyna» JSC and other members took part in the round table.
In his address, CEO of «Samruk-Kazyna» JSC Umirzak Shukeyev noted that since its establishment, the Fund has paid KZT 7.9 trillion in taxes and other payments, in addition to accrued and paid amount of KZT 716 billion to the sole shareholder (the Government of Republic of Kazakhstan) in the form of dividends and other distributions. In terms of the share of dividend payment and other distributions from net profit to shareholders, «Samruk-Kazyna» JSC has performed closely at par with the best sovereign funds in the world.
According to Umirzak Shukeyev, the Fund has initiated the optimization of current expenses during 2013 to 2015 which contributed to the reduction of cost by KZT 150 billion. Additional initiatives to improve efficiency in the areas of corporate treasury, e-procurement, and the implementation of non-core assets have benefitted the company by more than KZT 200 billion. The Fund’s companies have disposed off 530 non-core assets worth KZT 12 billion.
During the discussion, the heads of several portfolio companies of «Samruk-Kazyna» JSC spoke on the matter and presented the performance of respective companies headed by them. Chairman of the Management Board of «NC» “KazMunayGas» JSC Sauat Mynbayev highlighted the strategic goals of the company. He submitted that the volume of oil and condensate production amounted to 22.7 million tons in 2015, and expressed his confidence that this figure will reach 35 million tons by 2025. KMG is now introducing intelligent oil field technology and specialized IT-systems for analysis of production optimization and accounting of oil production.
The Head of Kazpost JSC Bagdat Mussin noted that currently 35% of all the company's offices are located in the city and 65% - in rural areas. «In spite of the loss in maintaining of rural branches, we are aware of our social responsibilities and we continue to invest in the countryside. In order to maintain the profitability of branches, we have regularly diversified our services and currently, we are able to offer several other agency services, for example, services in relation to disbursements of loans, insurance, sale of railways tickets, lottery tickets, tickets for EXPO-2017 etc.» he said.
As a result of the transformation program, launched two years ago, within «Samruk-Kazyna» JSC eight portfolio companies of the Fund will meet the scale of their foreign counterparts by 2020, and the annual increase in value of the assets is expected to be around 8-12%. The twelve (12) largest companies of the Fund are also implementing necessary roadmaps to receive a positive economic profit (EVA) by 2020.
One of the key objectives of the Fund within the framework of business transformation is to enhance the rate of return. As a result of the crisis in 2015, this figure for «Khazanah», «Temasek» and «Mubadala» are 2.9%, 4.9% and 0.7% respectively. The overall figure for Fund stood at 3.3%, which is higher than «Khazanah» and «Mubadala». The next challenge is to increase the return on capital and bring it to the level of «Temasek».
As per our well-structured plan approved for 2016-2020, the Fund will invest annually about KZT 50-80 billion on the development of new industries which will provide an impetus to employment by creating 9000 temporary and 8,000 permanent jobs. Currently, there are five growing companies in the Fund’s portfolio that operate to develop petrochemical and agrochemical clusters; ore deposits mainly located in difficult terrains with the help of the most modern technologies; projects in the construction of commercial housing, etc.
As part of the State Program for Innovation and Industrial Development of Kazakhstan, the Fund continues to implement 11 projects worth US$ 26 billion. Under the «Nurly Zhol» program, the Fund implements seven projects with an investment of US$ 2 billion.
Sovereign wealth fund “Samruk-Kazyna” JSC is a national fund established by its sole shareholder - the Government of the Republic of Kazakhstan. The Fund was established in accordance with the Decree of the President of the Republic of Kazakhstan in 2008 and represents itself as commercial structure - the investment holding company, and its mission is to increase the national welfare of the Republic of Kazakhstan by supporting the modernization of economy.
The Fund’s largest assets:
- oil and gas holding company NC «KazMunayGas» JSC;
- transport and logistics holding company «NC» Kazakhstan Temir Zholy» JSC;
- airline companies «Air Astana» JSC and “Qazaq Air” JSC;
- one of the world's leading uranium producers «NAC «Kazatomprom» JSC;
- national postal operator «Kazpost» JSC;
- energy companies «Samruk-Energy" JSC and “KEGOC” JSC;
- engineering holding «NC» Kazakhstan Engineering” JSC .