SOEs need support for successful reform

The ongoing State-owned enterprises' reform has a key role to play in the country's comprehensive economic transition, but it would not be right to overdo it, especially because the SOEs and society are not yet ready.

In other words, owing to the ongoing economic downturn, SOEs in the competitive market should be given time and financial support to recover their losses, if any, instead of being told to contribute more to the country's fiscal revenue.

In fact, it will cost more to press ahead with the SOEs' reform than in the past. Also, the risk of causing further economic turbulence is high if the authorities push for mergers and bankruptcies of enterprises suffering from overcapacity. The top priority at the moment should be to replace the obsolete development model with one that would be sustainable.