Introduction to Kyrgyzstan
Location

Figure 1.1: Map of Central Asia

Located in Central Asia, Kyrgyzstan, a country that obtained its independence from Soviet Union on 1991, 31st August is a mountainous country with 95% of its area covered by the Tien Shan mountain range. With a total area of 199,951 square kilometer, 94% of the country is 3,300ft above sea level with an average height of 9,020ft. Kyrgyzstan is bordered by four countries with Kazakhstan on the north and northwest, Uzbekistan on the southwest, Tajikistan on the south, and China in the east. As a common issue of Central Asian nations whereby the borders where not clearly defined by the Soviet rules, there are areas where the borders are yet to be mark off. There is an exclave of Kyrgyzstan, a small village Barak which is located in the Fergana Valley surrounded by the Uzbekistan territory. On the other way round, there is also four village of Uzbekistan and two village of Tajikistan which is enclave within the Kyrgyzstan territory. As compared to other countries, Kyrgyzstan which is located on the mainland is considered far away from the sea. The rivers are flowed into a closed drainage systems which do not reach the sea. Despite that, Kyrgyzstan still owns the second largest lake in the world, the Issyk-Kul Lake which is located in the northeast of Tien Shan.

Climate
Climate in Kyrgyzstan is continental with great regional variations. Kyrgyzstan is roughly separated by the Talas Alatau and Fergana ranges to the southwest and northeast. In the southwest which mainly consist of the Fergana Valley, the climate is subtropical whereby it is extremely hot in the summer with temperatures reaching 40 °C. However on the northeast on the Tien Shan, the climate varies from dry continental to polar climate depending on elevation. In winter, temperature can goes down to sub-zero which caused spring floods and leads to serious damage in downstream. Hydroelectricity is generated from the runoff off those mountains which is the most important export of the country.

Population
Kyrgyzstan is divided into seven provinces and two independent cities, Bishkek and Osh, with status equal to a province. Each province is administered by appointed governors supported by government appointed official who administered the province comprises district. Bishkek is its capital and also the largest city in the country. As Kyrgyzstan is rural, only one-third of the population lives in the urban area and two-third in rural area.

Kyrgyzstan is estimated to have a population of about 5.5 million in 2012. Within the population, 34.4% are under the age of 15 and 6.2% are over 65. Kyrgyzstan had a labor force of 2.344 million (2007), with an unemployment rate of 8.6% (2011 est). The main ethnic is Kyrgyz which comprises 64.9% of the population, followed by 13.8% of Uzbek, 12.5% of Russian, and the balance 8.8% which includes some other minor ethnics such as Dungans, Uyghurs, Tajiks, Kazakhs, Ukrainians, and others. Due the diversity of ethnics in Kyrgyzstan, it creates tensions between different ethnics group. Minor groups such as Russian, Uyghurs and Dungans claimed discrimination by the Kyrgyz people. However the most severe tensions happened between Kyrgyz and the Uzbeks who compete for housing and job segregation.

The Kyrgyz natives are Turkic people who first settled on the Tien Shan Mountains. It is generally known that there are 49 Kyrgyz clans which are shown on the 40-rayed yellow sun symbol on the middle of the flag. Historically, the Kyrgyz have been living a semi-nomadic herder’s life whereby they live in round tents called yurts and tend sheep, horses and yaks while they move. They return to the mountains seasonally during the summer. However due to extensive Russian colonization in the 1900s, the Kyrgyz were not given good agriculture land as compared to the Russians and finally they were forced by the Soviets to abandon their nomadic culture to adopt modern farming and industrial production techniques.

Economy
Kyrgyzstan's economy is mainly emphasized on agriculture and animal husbandry but there are grow at urban areas. In 1999 agriculture contributed 45% to the economy, while services contributed 35%, whereas industry made up 20%. Main imports of Kyrgyzstan are oil and gas, machinery and equipment, and foodstuffs. Kyrgyzstan's main trading partners are Germany, Russia, Kazakhstan, and Uzbekistan. Cotton, wool, hides and meat are the main agricultural products and exportation product. Industrial exports include gold, mercury, uranium, and electricity. Kyrgyzstan is a mountainous country with significant hydroelectric power generating potential.

After national independence on 31 August 1991, Kyrgyz government established a market-based economy and to integrate into the world economy. Kyrgyzstan became a leader in the movement of the post-Soviet states toward an open market economy. The economy underwent severe contraction between 1990 and 1995. However, transition to an open economy has been difficult for this small country with few manufactured goods. However, the Kyrgyzstan economy began to rebound in 1996 as new, post-communist practices began to take effect. The budget deficit as a proportion of the GDP was cut in half during the period 1995 through 1997.

With assistance from international organizations, Kyrgyzstan government has established the legal and regulatory foundation for a market economy. Kyrgyzstan carried out small enterprises and overhauled the country's banking and financial systems. In 1998 the Kyrgyzstan constitution was amended to allow for private ownership of land. Kyrgyzstan was first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization (WTO). Exports start to recover at mid-1995 after drop in production after breakup of Soviet Union in end of 1991. The government made steady strides in controlling its substantial fiscal deficit after BAKIEV government and international financial institutions initiated a comprehensive medium term poverty reduction and economic growth strategy in 2005 (Kyrgyzstan Economy - overview, 2013).

The declines in output were reversed and the economic picture for Kyrgyzstan brightened considerably at end of 1996. A large increase in government revenue from the newly opened Kumotr gold mine, which combined with favorable weather that helped boost agricultural production. Economic growth in 1996 registered 7% and climbed to 10% in 1997. These showed inflation declined, government's current account deficit. This picture changed when Kyrgyzstan was hit hard by the 1998 financial collapse in its major trading partner, Russia. The financial collapse in Russia led to a sudden drop in orders for Kyrgyzstan goods from Russia. The contraction in output led also to a deterioration in Kyrgyzstan's balance of payments at the same time as the country's indebtedness to foreign lenders increased substantially (Kyrgyzstan - Overview of economy, 2013).

According to Global Finance (2013), the latest data on economic information of Kyrgyzstan is as shown below:

Description | Economic Information | Gross Domestic Product - GDP | US$ 6.442 billion (2011*) | GDP (Purchasing Power Parity) | 13.956 billion of International dollars (2011*) | Real GDP growth | 5.7% (2011), 5% (2012*) | GDP per capita | Current prices US$ 1,153 (2010 estimate) | GDP per capita | PPP $2,498 International Dollars (2010 estimate) | Composition by sector | Agriculture: 20.2%Industry:27.8%Services: 51.9% (2011*) | Inflation | 6.8% (2009*) | Unemployment rate | 8.4% (2009*) | Current account balance (CAB) | US$ -312 million (2011*) | CAB by percentage of GDP | 4.8% of GDP (2011*) | Exports as percent of GDP | 57.7% (2010) | Total exports | US$2.294 billion (2012*) | Total imports | US$4.272 billion (2012*) | Exports - major partners | Uzbekistan 25.4%, Russia 22.2%, Kazakhstan 20.1%, China 7.8%, UAE 5.5%, Afghanistan 5%, Turkey 4.2% (2011) | Imports - major partners | China 59.8%, Russia 13.9%, Kazakhstan 5.2% (2011) | Global competitiveness ranking | 127/144 (2012) |
* Estimate
Sources: Global Finance (2013)

Kyrgyzstan Economic Indicators
Sources: Trading Economics (2013)
Political
From the political view, Kyrgyzstan becomes independent in 31 August 1991. Kyrgyzstan is an independent, secular, democratic and lawful state.
Before 2010, presidential used to be the form of government, however after the adoption of the Constitution in 27 June 2010, most of the authority was taken by the Parliament and the Prime Minister, and thus, Kyrgyzstan became a parliamentary republic (Advantour). Legislative power is exercised by the Parliament while the judicial system is exercised by both the government and parliament.
In Kyrgyzstan, the civil unrest has swept two presidents from power: Askar Akayev in 2005 and Kurmanbek Bakiyev in 2010. An interim government, headed by Roza Otunbayeva, is now running the country. Its leaders have called for a referendum on a new constitution to be held June 27, 2010, and set parliamentary elections for October 10, 2010. The June referendum would recognize Otunbayeva’s authority as president through December 31, 2011. But this referendum—on the survival of the interim government and possibly even that of the Kyrgyz state in its present form—has been called into doubt by ethnic clashes in southern Kyrgyzstan that have left 2,000 or more dead and approximately one million people (almost 20 percent of the country’s population) affected by the violence—either injured, displaced, or housing displaced persons.

Language
The languages used in Kyrgyzstan includes Kyrgyz with 64.7% usage, followed by Uzbek 13.6%, Russian 12.5%, Dungun 1%, and others languages of 8.2% (1999 census) . Both the Kyrgyz and Russian is the official language. However, Russian is most widely used in business and political meetings and event. Speaking Russian and dressing in Western style is also used as symbols of social stratification as poor command of Russian is considered as sign of lower –class status. Kyrgyz which is the native language of Kyrgyz remain as language spoken at home. But most parliamentary meetings are conducted using Kyrgyz today with simultaneous interpretation ready for those non-Kyrgyz spoken representatives. Kyrgyzstan had a literacy rate of 98.7% (1999 est.). All children are to study Kyrgyz, Russian, and English in school.

Transportation
Due to the geographical condition of Kyrgyzstan, the transport infrastructure of Kyrgyzstan is not well-developed, although much effort is done to improve the situation. Even so, road transport remains the primary medium of transportation in Kyrgyzstan, followed by railway. Railway is introduced due to its low costs of implementation. Railway transports the exports from Russia, such as construction materials and fuel. However, the railway infrastructure is still poorly developed due to its rugged terrain. The most expensive and developed infrastructure in Kyrgyzstan is the air cargo. The airport in Kyrgyzstan has a terminal which provides a complete range of logistic services.

Religion
Kyrgyzstan provides religious freedom to its citizen. Islam is the predominant religion in Kyrgyzstan, accounting for an approximate of 75% of the population, while 7% of the population is Russian Orthodox, and the remaining are Protestant Christian, Jewish and Buddish. Although there is freedom of religion in Kyrgyzstan, there are laws and policies to restrict the religious freedom. The restrictions are imposed so as to limit the registration of some religious organization as well as the activity of Muslims groups that may be considered as threats to society.

Development
Kyrgyzstan is a mountainous country, which covers up 93% of the country’s land. After achieving its independence, Kyrgyzstan has implemented several large-scale projects on establishing a digital communication network in order to provide access to the global communications network for Kyrgyzstan citizen. Although 30% of the rural settlements still lacks of telephone service, the number of mobile network subscribers is constantly increasing. In order to boost the usage of telephone, universal access programs such as e-centers and rural access project were launched, so as to reduce the digital divide between rural and urban.

Besides that, the penetration of internet is improving from year to year, with the reduction of regulatory barriers and the establishment of public access centre and internet cafes. There are currently 150 centre offering public accesses to internet, followed by public access offered by higher education institutions.

Basically, there are several factors that affect the physical access to technology in Kyrgyzstan. The main factor is the geographical condition whereby Kyrgyzstan is a mountainous country which causes many areas hard to be reached, and thus incurs high costs to implement telecommunication in those areas. Furthermore, the telecommunication services are highly concentrated at Bishkek, the capital of Kyrgyzstan whereby only 20% of the population resides. Only a small portion of the services are offered in the area where 80% of the country’s population resides. Besides that, the quality of services of the cellular communication, TV and radio signal in the regions that is much lower than that in the capital due to the less developed infrastructure has restrict the access of technology in Kyrgyzstan.

As mentioned above, Kyrgyzstan is a yet rural country and is actively seeking oversea partners to modernize its industry and introduce new technology. To invest in Kyrgyzstan, firstly foreigners must be registered with the Ministry of Economy and Finance and application to set up in Kyrgyzstan should be done with the State Technical Committee on Foreign Investments and Economic Assistance. To further encourage foreign investor, numbers of laws had been enacted to protect forign investors such as having the rights to similar to Kyrgyz citizens on ownership to purchase businesses and buildings to carry out their activities. Significant tax incentives are also given to foreign investor. However the government still reserves their exclusive rights on land, natural resources, eater agriculture and livestock. Kyrgyzstan government is showing great interest in attracting investors particularly on mining, industry, petroleum, hydroelectricity and also agriculture.

Business culture
To start business in Kyrgyzstan, it is important to understand and adapt to some Kyrgyzstan basic culture and etiquette. Kyrgyzstan people treated respect as the most important etiquette in their life. It is important to give respect to elderly and also authority figure. Respect is mostly shown through verbal by using polite pronoun and endings. Titles are also used for addressing elder people such as eje for older sister and aga for older brother for strangers and also friends and relatives. Besides that, giving up seats for elderly is also practiced in Kyrgyzstan and elderly are usually seated in the head of the table farthest from the door. Women in Kyrgyzstan works and are treated fairly. They are usually seated on opposite sides of tables. It is to take note that greeting methods are slightly different in the north and south. In the south, greetings are done through hand shake with left hand over the heart, only between similar genders. Whilst in the north, greetings are only done between men with a shorter hand shake. Assalom aleikum is frequently used in greetings between men. In the south also, which is more conservative, boys and girls usually don’t befriend each other. Also important for the Kyrgyz, bread is considered sacred item and should not be left on the ground or left upside down. Leftovers of bread should not be thrown away but to be fed to animals. Foods are to be eaten with right hand only. Besides that hospitality is also an important component and etiquette in Kyrgyz life. Guests are highly honored especially in the rural household and when invited, it is appreciated if there’s a small gift. Shoes are not allowed in the house or yurt and are to be removed at the threshold.

Introduction to Product
Background
Kyrgyzstan, which is previously known as the Kirgizian Soviet Socialist Republic, was subjected to the abortion legislation and regulations of the former Union of Soviet Socialist Republics. Policies limit the availability of contraception and forced women to depend on abortion as the principal means of fertility control. Although after independence of Kyrgyzstan, contraceptives are more widely available but there are not many changes in the abortion law of the country (PRIME, 2003).
Abortion believed to be the most common form of birth control in Kyrgyzstan. According to their country deputy health minister, Marat Kaliev, abortion is the number one form of birth control in the country and the numbers are rising steadily every year. Due to the lack of education and youth-friendly medical services in Kyrgyzstan, most of the abortion operations are performed in private clinic and mostly are not registered (D'Amour, 2012).

Statistics
National Staitstical Committee of the Kyrgyz Republic (2012) and the Ministry of Health of the Kyrgyz Republic had done a survey designed to provide fundamental information on population and health issues in the Kyrgyz Republic. Information obtain is used to evaluate the existing health and social programs, and thus assists the government to design new strategies in health and health service for improving women and children.
In Kyrgyzstan, each year approximately 10% of the women seeking abortions are aged under 18 and they are at a higher risk of having an unsafe abortion. Research performed by the Reproduction Health Alliance Kyrgyzstan (RHAK) showed that only one in 8 abortions performed in governmental clinics is registered and private clinics do not report their abortion figures.
Statistics showed that at the age of 22, woman in Kyrgyzstan has had one abortion and the numbers of abortion increased with their age. One in 10 abortions are young person (up to 19 years old) and more than 200 abortions were younger than or 14 years of age.
According to Yulia (2007), gynecologist in Bishkek said that they believed that due to the tough life condition in that country, most women choose to undergo abortion to get rid of their unwanted children.
Based on the study done by United Nations Development Program (UNDP) on its 2009/2010 National Human Development Report, research found that 70% of pregnancies are ended in abortion. Thus, the quality of medical services declined and results the abortion procedure become more risky. Study also found that only one in 8 abortions are done in government registered clinics, and most of the abortions performed in private clinics are not registered and not included in government statistics.

The table shows that the TAR and age-specific induced abortion rates for the three-year period preceding the survey (mid-2009 to mid-2012). The TAR for all Kyrgyz Repulic is 1.0 induced abortion per woman.
Bengard (2013) stated that among the 12-17 years-old teens, there are about 1,200 cases of abortion registered annually in Kyrgyzstan. The Kyrgyz government believed that the rate of unregistered abortions will be much higher. According to Eurostat data 2010, Kyrgyzstan ranked 21st for high official abortion rate in the world.

Government action
As a part of the Kyrgyz government national strategy plan to protect reproductive health, the government has issued new restrictions and conditions for termination of pregnancies in 2009. In Kyrgyzstan, the cost for an abortion at a state clinic costs between US$10 to US$15. Private clinics charged at a higher rate, between US$ 20 and S25 (Abdullo, 2009).
Furthermore, the Ministry of Health has taken the effort by organizing community-wide educational activities and outreach with radio messages to local markets in order to improve the people’s knowledge about fertility and family planning.

Contraception Method
Study proven that the contraceptive used can reduced the abortion incidence. Contraception is the deliberate use of artificial methods to prevent pregnancy as a consequence of sexual intercourse. The major forms of artificial contraception are barrier methods, of which the most common is condom, the contraceptive pills and intrauterine device (Marston & Cleland, 2009).
According to the Office of National Statistics (ONS), birth control pills and condom remains the most widely used methods in the world. However, the cost of birth control pills is much higher compared to condoms. Furthermore, discipline is important in taking the pills as it should be taken every day in order to prevent pregnancy.
Therefore, we are going to introduce and supply the country birth control kit that consists of male condoms. Condom is the cheapest way of contraception. The benefits of using condoms are: * It is the only method to protect people against HIV and other sexually transmitted diseases * It is an efficient contraceptive with proper usage * It is simple to use * It is small and practical * It does not require a prescription * It is completely harmless for health * It can be stopped anytime, and fertility returns shortly after each use

Production of Birth Control Kit in Malaysia
Malaysia is one of the countries in the world that manufactures latex condom. There are several United Nations Population Fund (UNFPA) prequalified latex condom manufacturing sites in Malaysia, for instance Richter Rubber, Beiersdorf Medical Latex (DUA), Karex Industries SDN. BHD and etc (UNFPA Prequalified Male Condom Manufacturing Sites, 2013). Malaysia is capable in producing latex condom due to the large production of natural rubber every year.
Malaysia has been claimed as the world’s largest condom producer after it surpassed Thailand in 2009. According to Malaysia Rubber Export Promotion Council (MREPC), Malaysia exported a total of 4.37 billion pieces of condoms in 2012 (Maierbrugger, 2012).
“Malaysian manufacturers are expected to produce quality medical devices, including rubber products such as condoms, catheters and gloves for the export market”, according to CEO of MREPC, Dato’ Teo Suat Cheng in their quarterly publication in 2009 (Malaysia Rubber Export Promotion Council, 2009). In Richter Rubber Technology Sdn. Bhd., the total production capacity of rubber plant is 3,163,820 gross per year, or equivalent to 455,590,080 pieces of condoms. The production capacity is done with 7 fully single automated Condom Dipping machines ad 2 fully double automated Condom Dipping machines. The standards of condom have been imposed by the Department of Reproductive Health and Research of World Health Organization (WHO/RHR). These include an appropriate length, width and strength of the condom in relation to effectiveness, comfort and size, sufficient protection against harsh environmental conditions, appropriate packaging, labeling and information, as well as suitable design to meet user’s requirements (Department of Reproductive Health and Research World Health Organization, 2010).

Production Cost
A condom is a simple and low cost device to control birth as well as prevent HIV infection. The technology used to produce condoms has not changed significantly for the past ten years. However, the quality of condoms has been improved due to better process control and stringent standards of production (Department of Reproductive Health and Research, 2003).
A ready-made condom that is sealed and packaged in air-tight packet costs RM0.19. In order to minimize the cost of packaging of condom, the condoms are packaged into a small box containing 24 units of male condoms. Each box equipped with labeling and design that cost RM0.10 is used. The total cost of a packet of 24- piece condom is shown below. Description | Unit Cost (RM) | Total Cost (RM) | Condom | 0.14 | 0.14 * 24 = 3.36 | Packet | 0.04 | 0.04 * 24 = 0.96 | Box with labeling and design | 0.10 | 0.10 | | Total | 4.42 |

Packaging Size

Figure: Standard 20’GP container

| L | W | H | External | 20’0’’6.10m | 8’0’’2.44m | 8’6’’2.59m | Internal | 19’4’’5.90m | 7’8’’2.34m | 7’9’’2.38m | Door Opening | 19’4’’5.90m | 7’8’’2.34’’ | 7’6’’2.27m | Max Capacity | 1158-1186 (cu ft) 39380-47880 (lbs)32.85-33.58 (m) 17860-21700 (kgs) | Tare Weight | 5030-5490 (lbs)2280-2490 (kgs) |

41 cm
41 cm

46 cm
46 cm

63 cm
63 cm

Figure: Standard box size for shipping

15 cm
15 cm

5 cm
5 cm

5 cm
5 cm

Figure: Packing box for 24pcs of condom

One packing box of birth control kit consists of 24 pcs of condom. 432 packing boxes can be fitted into the standard box for shipping. One container can fit in 225 standard boxes.
Therefore, the amount of condom being shipped will be 24 x 288 x 225 = 1,555,200 pieces.

Transportation Cost

Since Kyrgyzstan is a land-locked country in the heart of the Asian continent. Ocean containers can be delivered via land transportation from the forts from China such as Tianjin, Qingdao or Lianyun. Trucking/railway service is often used to deliver the container to Kyrgyzstan. Port Klang, Malaysia (Ocean) Lianyungang/Qindao (Raiway) Bishekek,Kyrgyzstan

Shipment Cost from Port Klang, Malaysia Port Lianyungang, China

| Details | Amount | 1. | Container Haulage/Transport | RM 250/container (20’GP) | 2. | Forwarding Fee | RM 100/container | 3. | Custom documentation | RM 50/set | 4. | Custom examination | RM 100/container | 5. | SMK (EDI) | RM 30/set | 6. | Seal Fee | RM 100/container | 7. | Ocean Freight | RM 300/container | 8. | Destination forwarding fee | RM 63.60 | 9. | Port Charges | RM 100/container | 10. | Freight Charges | RM 2044.80 | 11. | Insurance | RM 2,415.74 | | Total | RM 5,554.14 |

Days of shipment: 8-12 days

Railway Cost: Lianyungang, China Bishkek,Kyrgyzstan

China railway that on the Lianyungang-Alatan Shakow railway line the scheduled container trains would travel the distance of 4,134 km in 168 hours (7 days), across China to Central Asia region. Distance between Lianyungang (China) and Bishkek (Kyrgyzstan) is approximately 3,924 kilometres or 2,439 miles at a cost of US$ 0.24 for TEU/km, or US$ 0.018 per ntkm.

Charges included for: 1. Cost of documents 2. Administrative fees for custom clearance and technical control 3. Customs broker fees 4. Terminal handling charges 5. Inland transport 6. Export railway freight charges 7. Warehousing in China/Kyrgyzstan 8. Transit service charges 9. Export customs clearance 10. Transit custom clearance 11. Export railway freight service 12. Insurance charges

Total: US$ 0.24 x 3,924 km = US$ 941.76 ≈ RM 3,107.81
Days of transport: 6-7 days

The approximate days of transportation and transiting period from Port Klang, Malaysia to Bishkek, Kyrgyzstan is around 1 month and the total transportation cost will be around RM 8,661.95.

SWOT Analysis Strength * Raw materials are widely available * The cheapest way of contraception * Increasing awareness of the society * The only method to avoid sexually transmitted diseases (STD) * Attractive colors and flavors to attract different groups of customers | Weakness * There is 2% of condom failure * Social, cultural and traditional hindrance * Cannot advertise directly | Opportunity * People are getting more aware and conscious on the use of condom * The act of abortion is dangerous to the mothers | Threat * Substitutes such as contraceptive pills, injection etc * Surgical procedures (sterilization) * Some religions oppose the use of condom, for eg, Roman Catholic Church |