Hot news:
Octopus inspires new camouflage material Russia vows to strengthen navy to ward off NATO Madonna clothing, lyrics to hit auction block Kazakh kawaii Sabina Altynbekova wants no modeling, just sports Kazakhstan expedition: Kashgar today and before Cotto will never fight Golovkin: Abel Sanchez Golovkin needs better promotion: Cotto's trainer Freddie Roach Kazakh Defense Minister visits armaments exhibition near Moscow Loreen to headline Eurasian Music Awards in Almaty Kazakh enterprises ready to export goods to Russia Australia to free some detained asylum-seeker children Disquieting times for Malaysia's 'fish listener' New Ferris wheel in Astana to be as tall as 18-storey building Australia tycoon blasts Chinese government 'mongrels' 10-yo Kazakh singer succeeds at Junior New Wave 2014 Hollande faces host of headaches on return from holiday Google buys travel guide app startup Jetpac Pangolins under threat in Gabon as demand surges in Asia Assange will not leave until assured no US extradition: lawyer 'Dozens' killed in rebel strike on refugee convoy: Ukraine Italian-American opera star Licia Albanese dead at 105 US hospital firm: Chinese hackers stole patient data Facebook helps readers tell truth from fiction Kazakhstan’s trade turnover with Customs Union states decreases by 23% Kazakhstan wins 2nd place at Tank Biathlon 2014 Kazakh judoka wins gold at Youth Olympics in Nanjing Kazakh tennis player Diyas enters WTA Top 50 Over 2000 people need new organs in Kazakhstan No toll roads for Almaty yet: municipal authorities Almaty welcomes you to celebrate its birthday throughout September Young couple nearly struck by lightning when taking selfie Kazakh scientist invents all-healing ointment Kazakhstan's meat project stalls Reconstruction shows how ancient Scythian 'Princess' discovered in Kazakhstan looked like Marco Antonio Rubio tweets about fighting Golovkin in October Heated swimming pool to be built in Astana Kazakh women's chess team in Top-10 of Chess Olimpiad Golovkin makes into early favourites for 2014 Fighter of the Year One who knows Chinese can always make a living: Vice-Chairman of Kazakhstan's Nur Otan party New Zealand PM tips tight election battle Gaza death toll rises above 2,000: health ministry Kenya's foreign-funded anti-terror police killing suspects: HRW Somali journalists urge fair trial for colleagues Japanese man feared kidnapped by Syrian militants Three climbers die after 800-metre fall from Mont Blanc Thirteen rescued two days after Indonesia tourist boat sinks The East is wed: China seeks brides for richer, for poorer Mercedes-Benz accused of 'price-fixing': China media Infected Ebola patients flee after attack on Liberia clinic Nepal floods death toll climbs to 101 Leading Scottish historian backs independence campaign 'Some progress' in difficult Ukraine, Russia talks: Germany Police shot Ferguson race victim six times: report Pope makes plea for Koreas to unite as 'one people' Tens of thousands mourn Brazil presidential candidate Campos Strong earthquake shakes western Iran: US monitors 'Turtles' outmuscle Stallone, Schwarzenegger at box office HK pro-government activists rally against Occupy protest Orbital cargo ship makes planned re-entry to Earth Kazakhstan and Canada agree on peaceful use of nuclear power Kazakhstan plans to increase grain exports to Russia amid sanctions Publications in pseudoscientific journals damage reputation of Kazakhstani scholars 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: 782    Comments: 0
preloader
Add a comment
preloader

2014
2008
2009
2010
2011
2012
2013
2014
August
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 31

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/