Kazakstan President Kassym-Jomart Tokayev stressed the need to enhance the investment climate and working conditions, and take decisive measures to attract capital, calling on the government and government agencies to facilitate local business and foreign investment, warning against obstructing legitimate business activities, and demonstrating integrity, compliance with the law and fulfilling their tax obligations, and announced that 2025 will be the year of professional jobs to reform the technical education system and promote hard work and professionalism.
The Nation Address themed “Fair Kazakhstan: Law and Order, Economic Growth, Public Optimism”, attended by Deputies of the Senate and Majilis of the Kazakh Parliament, heads of central government bodies, members of the Ulttyq Qurultay (National Congress), Human Rights Commission, National Commission for Women’s Affairs and Family and Demographic Policy, and others.
Investment Climate
President Tokayev emphasized the need to enhance Kazakhstan’s investment climate and business conditions, underscore ding the importance of decisive action to attract capital amidst intense global competition, and said:“In the current context of fierce international competition for investment, it is crucial to make decisions that attract capital in the ‘here and now’ mode”.
He mentioned that to facilitate this, the Investment Headquarters under the government has been granted expanded powers, enabling the accelerated implementation of projects in key sectors such as deep metal processing, oil, gas, coal chemistry, tourism, energy, and mechanical engineering.
Tokayev urged the government and local administrations to intensify efforts to prevent a decrease in direct investment in the economy. He also called for identifying large-scale projects that could be financed through public-private partnerships with the involvement of international financial institutions.
Reducing state participation in the economy
Tokayev highlighted the urgent need to reduce state participation in the economy, noting that it remains high, creating unequal market conditions and hindering private initiative. He acknowledged the lack of an optimal policy for managing state-owned enterprises and stressed the importance of a stable and systematic approach to financial relations between holdings and the government.
Tokayev proposed that entrepreneurs listed in the relevant register be allowed to conclude agreements without admitting the illegality of transferred assets. He also called on entrepreneurs to contribute to the national budget and invest in socio-cultural infrastructure, with the possibility of being recognized on a “golden list” of philanthropists.
“If there is refusal or delay in this process, the conversation with such entrepreneurs will be different,” Tokayev warned, underscoring the need for transparency in the use of returned assets.
Supporting agro-industrial investment
The President tasked the government with increasing the share of medium-sized businesses in the economy from the current 7% to 15% by 2029.
He criticized the lack of concrete measures to support these businesses and called for creating a comprehensive and easily navigable list of support measures. Tokayev suggested leveraging fintech tools to foster the development of small and medium-sized enterprises.
Attracting investment in the agro-industrial complex was another key focus of Tokayev’s address. Despite the challenges posed by recent floods, Kazakh farmers completed the sowing campaign on time, an achievement for which the President expressed deep gratitude.
Tokayev underscored the need for the government and state bodies to facilitate domestic business and foreign investment. He warned that hindering legitimate business activities should be treated as a serious offense and called on entrepreneurs and investors to demonstrate integrity, comply with the law, and fulfill their tax obligations.
Tokayev explained: “Energy shortages in the world are getting worse right now.” The country desperately needs reliable and environmentally friendly sources of power.
This is why I think we should focus on nuclear energy development. Because our economy needs abundant energy every day. Such a demand can be provided by nuclear energy. There are about 200 nuclear power plants currently operating in 30 developed and developing countries”.
New Banking Law
President Tokayev called for a new banking law that meets the current challenges of stimulating economic activity and dynamic development of the fintech sector in his Sept. 2 state-of-the-nation address. He noted that the existing law, which has been in place for 30 years, no longer aligns with present-day realities.
President Tokayev emphasized the importance of fair taxation, suggesting that banks’ taxes should be proportionate to the dividends paid to their shareholders.
He highlighted that this approach is especially logical given the state aid provided to banks and said: “It is also important to create a stable regulatory environment for the circulation of digital assets and the safe implementation of innovations in the banking sector”.
The President also discussed the role of the National Fund, which he described as the most important instrument for ensuring long-term macroeconomic stability in Kazakhstan. He noted that the fund’s resources should primarily serve the country’s interests and strategic goals rather than foreign financial institutions.
Tokayev suggested postponing the adoption of the new Tax Code until next year to ensure it is prepared at a high level. He also called for optimizing tax regimes without worsening the current favorable conditions for entrepreneurs, citing the introduction of a retail tax as a positive step.
To achieve success in fiscal reform, Tokayev advocated for the complete digitization of tax administration to mitigate corruption risks and ensure transparency. He proposed adapting the entire tax policy to changing fiscal conditions, including revising tax rates.
The President stressed the need to improve the effectiveness of tax benefits, suggesting that only those incentives that stimulate business should be maintained.
He proposed tax preferences for investors focused on production development, such as one-time deductions for the construction, acquisition, modernization and reconstruction of assets, as well as benefits for exporters of high-value products.
Tokayev, charged to take human rights protection measures for deeper socioeconomic reform and said:” deep socioeconomic reforms and complex human rights protection measures are aimed primarily at building a fair society as a basis for the comprehensive progress of the country. That’s why we will further work in this direction.
2025 Year of Vocational Jobs
Tokayev, declared 2025 the Year of Vocational Jobs, to reform the country’s technical and vocal education system and to promote the idea of hard work and professionalism, and he highlighted 23 well-known foreign universities were attracted to Kazakhstan.
The President said it is crucial to bolster ties of the best universities with the real economic sector and synchronize innovation policy with the scientific and technological priorities of the country. it will give an impetus to innovations and reveal the potential of applied sciences at the universities.
