Manufacturing industry development discussed at XI Forum of Kazakhstan Machinery Manufacturers
The priorities for developing Kazakhstan's manufacturing industry, with machine building as its engine, were discussed at a specialized forum in Astana. These priorities include increasing local content, introducing new technologies, and promoting exports. Thanks to state support last year, the industry's production volumes exceeded three trillion tenge. Additionally, there has been a significant increase in the range and scale of domestic product deliveries to foreign markets.
“Last year, the production growth in the machine-building industry was around 9.5 percent, and as of the end of the first four months of 2023, it has already reached 36 percent. The demand of the country’s machine-building market is estimated at $23 billion, with over $3 billion coming from domestic production. In this regard, there is a significant potential for industry growth through import substitution. We are facing the task of enhancing the competitiveness of machine-building enterprises by creating affordable financial instruments, introducing new technologies, increasing local content and promoting exports,” said Kazakh Prime Minister Alikhan Smailov.
Special focus is being placed on modernizing, innovating and digitally transforming production. These three pillars, according to the Prime Minister, will provide a powerful impetus to the development of the industry. Most importantly, the state is ready to support manufacturers. This year, the country has allocated 500 billion tenge for preferential financing of investment projects aimed at modernizing the manufacturing industry, with the possibility of increasing this amount to one trillion. In addition, industry enterprises in the country can receive up to a 40 percent reimbursement of the costs involved in implementing digital technologies and software. As part of the comprehensive plan for the development of mechanical engineering, there are plans to increase the deduction of research and development costs by 1.5 times. Experts believe that this will encourage companies to allocate more funds towards developing and implementing innovations.