Hot news:
Kazakhstani Zulfiya Chinshanlo wins silver at 17th Asian Games in Icheon Zarina Diyas wins qualifying matches at Wuhan Open in China Kazakhstani internet connection 2nd fastest among CIS First World Nomad Games draw crowds We want to make Kazakhstan one of the safest and most comfortable countries: Senate Speaker Eurasian Development Bank issues bonds in Kazakhstan New Zealand PM pushes flag change after election win Ghani named next Afghan president, signs power-sharing deal Scottish pro-independence parties report membership surge Brazil readies election thriller Poroshenko says Ukraine ready to defend itself if peace plan fails Italian conductor Muti quits Rome opera Physicists achieve longer distance quantum teleportation Kazakhstan protected from illegal transportation of WMDs D&G put Seville into Sicily as partnership burns as bright as ever World greenhouse emissions threaten warming goal: report Battle of opposition titans begins in France after Sarkozy return Pope says religion can't justify violence Tens of thousands join London climate march Prince William shows off his table football skills in Malta IS fighters close in on Syria border town as thousands flee Moscow marchers condemn Kremlin role in Ukraine war Abdullah: Afghanistan's 'almost' man stays in the game Thousands protest delays to tough new Spanish abortion law 'Friends' fans flock to New York pop-up cafe Russia could restrict airspace in sanctions battle: PM Philippine airport bomb plotters planned anti-China attacks: govt German jobless rate unchanged in August: data Galileo satellites not on right orbit: Arianespace Paris relives the joy of liberation, 70 years on US dominates Chinese world university rankings Jasmine and smoke: the allure of Greek summer cinemas Thousands mark Moon death anniversary in S. Korea India stray dogs to be part of security squad‎ Russia okays $150 mn to subsidise World Cup venues Tennis: Kazakhstani Zarina Diyas gets in WTA Top-100 Facebook wants to beam the Internet from the sky

Kazakhstan's Samruk-Kazyna cutting expenses

Tuesday, 19.02.2013, 18:59
Comments (0)
Kazakhstan's Samruk-Kazyna cutting expenses
Photo courtesy of samruk-kazyna.kz
Samruk-Kazyna National Welfare Fund will start cost saving, Tengrinews.kz reports citing the Fund's press-service. 11 Kazakhstan companies have already implemented the cost saving program.

"The group is expected to save around 70 billion tenge ($467 million) in three years. The fund's cost saving program was developed with the help of international consultants. All business processes, self-costs and other expenses of the companies were analyzed. The program is expected to improve the competitiveness and optimize the group's activities. The three-year program is being implemented by KazMunaiGas, Kazakhstan Temir Zholy, KazAtomProm, Kazakhstan Engineering, Samruk-Energy, KEGOC, KazpPochta, Kazakhstan Development Bank, SK-Farmatsiya, Damu and Samruk-Kazyna Fund," the press-service said.

KazakhTelecom and Kazakhstan Temir Zholy (national railroad company) has been working on cost saving since 2011 and has already produced some results. The telecommunications company saved 1.3 billion tenge ($8.7 million) in 2012. "Kazakhstan Temir Zholy is implementing the cost saving program. The expected effect of the 3-year program will make is 58 billion tenge ($387 million). Additionally, we will decrease the self-cost of our products and improve the activities' efficiency," head of Kazakhstan Temir Zholy Askar Mamin said.

Lowering the costs, KazPochta (national post service) counts on automation of its business processes. "We plan to cut human resources by means of the optimization. This will help improve efficiency and work quality. The wage pool makes 60 percent of the company's costs. Cutting it by 2-3 percent will give a significant economic effect. There are 16 thousand people working in our system. We plan to cut the staff by 2 percent every year," chairman of KazPochta Arken Arystanov said.

The Samruk-Kazyna group's costs are not always related to its production and commercial activities. Part of them is government payments. For example, the total amount of these expenses made around 301.2 billion tenge ($2 billion) in 2011 (178 billion tenge ($1.2 billion) in 2010). First of all, these costs are related to sponsorship and charity, subsiding passenger transportation, local communications losses and losses from oil and gas sales to the local market at low prices.

The group will separate accounting of incomes and expenses of commercial and non-commercial activities to adequately register every type of the costs in 2013. Besides, considering the multiple growth of expenses, on November 2011 the fund's board limited sponsorship and charity to 3 percent of the consolidated annual net profit, exclusive of second tier banks.

According to experts, cost saving projects should not be coming from above (should not be initiated by top managers). "Any company has space for cost saving. But savings should not be going downwards, but upwards. They lower the costs today and increase them tomorrow. Best option is to develop a program for stimulating personnel to save cost. Primary groups of the companies have to see a real benefit from that. In this case the program would work perfectly," independent director of Kazakhstan Engineering Oleg Kalugin said.
Views: 780    Comments: 0
preloader
Add a comment
preloader

2014
2008
2009
2010
2011
2012
2013
2014
September
January
February
March
April
May
June
July
August
September
October
November
December

News
Archive

Mo Tu We Th Fr Sa Su
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

Feature stories

Поделиться:
Kazakhstan's Samruk-Kazyna cutting expenses
http://en.tengrinews.kz/userdata/news_en/2013/news_17127/thumb_b/photo_25515.jpg
http://en.tengrinews.kz/companies/Kazakhstans-Samruk-Kazyna-cutting-expenses-17127/