Dear deputies!

A new session of Parliament was opened last week. I wish you success in your work! It is safe to say that the last session turned out to be fruitful. Many laws necessary for the country were adopted, and issues of concern to citizens were comprehensively discussed.

During the summer holidays, the deputies traveled to the regions and met with local residents. Now it is necessary to analyze the problems raised by citizens, work them out with the Government and take them into account during the current session. In general, members of Parliament play an important role in the implementation of fundamental reforms in our country. I express my great gratitude to you.

Dear compatriots!

Dear Members of Parliament and members of the Government!

The world has entered a new historical era, which, obviously, will not be easy for all mankind. Mutual contradictions between global powers and interstate associations are growing. As a result of the escalation of tension and aggression in international relations, the number of wars and conflicts is increasing.

The tendencies of extreme nationalism are strengthening in the domestic and foreign policy of some countries. Imbalances and inequalities in global economic development are increasing: some countries are lagging further and further behind, while others are making outstanding progress in the field of artificial intelligence.

The erosion of international law is becoming more and more noticeable, and the role and status of the United Nations in solving the key problems of our time is being undermined. Environmental and man-made disasters have become more frequent, with huge losses for national economies.

The Western concept of multiculturalism, interethnic and interreligious harmony is experiencing a crisis. The foundations of national cultures and traditions are being shaken by the influence of globalist destructive forces. The migration crisis is intensifying, refugee flows, human and arms trafficking, and drug trafficking are growing.

Completely new types of threats to human security have emerged, including those related to the use of extremely dangerous weapons based on artificial intelligence. There are other factors that indicate a fundamental change in the geopolitical paradigm. In other words, a new world order is coming.

Kazakhstan is an integral part of the world community, a country located in the very center of the Eurasian continent. Despite the global instability, we have taken a decisive step in the era of total digitalization and artificial intelligence.

My main mission is to ensure stable socio-economic development and security of Kazakhstan in this turbulent, dangerous time. Our younger generation should live in happiness and well-being. To achieve this, we, as a united nation, must work hard. This is our common cause, a civic and patriotic duty.

But no matter how difficult it is, we must definitely succeed. There is no other choice, because the future of the country and the fate of our people depend on it. Therefore, we need to approach all reforms carefully and thoughtfully, paying special attention to their qualitative implementation.

As you know, thanks to the large-scale transformations carried out in recent years, our political system has become more progressive and open. The mentality and consciousness of citizens are changing towards greater trust in state institutions. The principles of Legality, Justice and Order are established in society. However, there is still a lot of work to be done to modernize society.

Comprehensive economic reforms have been launched in the country. Significant investments are being made in the construction of infrastructure and the opening of new production facilities. Obviously, all these steps are aimed at improving the welfare of the people and strengthening the country's potential.

The rapid development of artificial intelligence is already affecting the worldview and behavior of people, especially young people. There is no other alternative, as this process radically changes the world order and the way of life of all mankind. We have to be ready for this. It is necessary to act decisively, delay is fraught with the most serious consequences. Therefore, I have set the strategic task of turning Kazakhstan into a full-fledged digital country within three years.

Based on large-scale digitalization and the active introduction of artificial intelligence technology, we must modernize the economy. As a first step, the adoption of the Digital Code should be accelerated. This document should identify key areas of digitalization, including artificial intelligence, platform economics, the use of big data, and other aspects.

To become part of the new technological order, it will be necessary to rebuild the entire system of public administration with a multiple increase in its transparency, efficiency, and human-centricity. Therefore, I believe that the Ministry of Artificial Intelligence and Digital Development should be established on the basis of the current relevant ministry, which should be headed by a specialist with the rank of Deputy Prime Minister.

The Government is tasked with ensuring the total implementation of artificial intelligence to modernize all sectors of the economy. In order to increase Kazakhstan's competitiveness, we must reconsider our approaches to our work. With that said, I would like to focus on the following key tasks.

first. Despite the intensification of global competition for capital, our country needs to attract large investments.

We need to launch a new investment cycle. The current policy in this area cannot be called effective. A significant part of the funds goes to the raw materials industry.

In general, this is not bad, we need such investments. But now we have another task ahead of us – to direct investments into the manufacturing industry. Therefore, the Government should review its investment policy. If necessary, preferences can be provided for investors working in the field of high technology.

At the same time, it is necessary to equally support both public investments and large-scale private initiatives. We will have to work on a broad front with both large and medium and small investors. We need to clearly define where, why, and to what extent we need funds. The "investment order" should be formed in accordance with the needs of the manufacturing sector.

The country has developed a cumbersome and fragmented system of interaction with investors. It inevitably leads to bureaucracy and duplication of functions. In the current difficult situation, attracting investments is a top priority that requires new approaches from us.

I would like to emphasize that in any case, all organizational work on attracting investments is entirely the responsibility of the Prime Minister. There is no need to establish a new ministry. However, it is striking that none of the government agencies have the word "investment" in their names. This issue is under the jurisdiction of three or four institutions and has not been resolved. Therefore, I am giving the Prime Minister ten days to come up with concrete proposals. In addition, I instruct the Government to develop an action plan as soon as possible to radically update the investment attraction system.

In my opinion, the time has come to rename the Committee for the Return of Illegal Assets of the Prosecutor General's Office to the Committee for the Protection of Investors' Rights. I must say, the Prosecutor General's Office has done a good job with the owners of illegal assets, and about 850 billion tenge has been returned to the treasury. These funds are aimed at the construction of ten schools and four sports facilities, the construction and modernization of 235 health facilities and 177 water infrastructure facilities. Additional amounts are expected to be allocated to the republican budget.

It is necessary to carefully consider the principles of granting tax preferences to investors, apply them wisely, giving preference to projects that are significant for the country's economy and profitable. In general, the mechanism of investment agreements has proven itself well.

To create additional sources of investment, it is necessary to rethink the role of the National Fund as a tool for sustainable development. The Fund's funds should be used thoughtfully to finance promising small projects with high market prospects in our country.

Most importantly, it is necessary to take responsibility for the allocation of funds. If necessary, international managers and investors with high-quality expertise can be involved in this work.

The Government, together with the National Bank, needs to develop a program for investing up to one billion dollars in high-tech sectors of the economy.

To successfully launch a new investment cycle, second-tier banks need to be more actively involved in financing the real sector. This issue has been actively discussed for a long time. It is time to make concrete decisions.

Today, in Kazakhstan, banking assets and capital are on average several times more profitable than in developed countries. This is due to the fact that it is more profitable for domestic banks to invest in low-risk instruments than in lending to the economy. This issue has been raised more than once by deputies and experts. The National Bank and the Government urgently need to find effective tools to involve banks' free liquidity in economic turnover.

An important step in this direction will be the adoption of a law on banks that takes into account technological changes and the needs of the economy. The law should provide for ways to strengthen competition and attract new participants to the market, as well as issues related to the promotion of fintech and the liberalization of digital asset turnover.

The Government, together with the Financial Market Regulatory Agency, should comprehensively study this draft law. I ask the deputies to adopt it before the end of the year.

Source : https://www.gov.kz/memleket/entities/abay-kurchatov/press/news/details/1064339?lang=kk