The registration of new businesses saw a 5% year-on-year decrease during the first two months, as operators adopted a cautious approach amid ongoing uncertainties, according to the Department of Business Development (DBD).
Auramon Supthaweethum, the DBD’s director-general, reported that 16,391 new businesses registered during this period, reflecting a decline of 5.09% from the previous year. The total registered capital stood at 41.3 billion baht, which is a drop of 9.85% year-on-year.
The top sectors for new registrations included general building construction with 1,319 new businesses, followed by real estate with 1,085 registrations, and restaurants/eateries with 675 new establishments.
This decline in business registrations is attributed to operators’ cautiousness as they assess the global economic landscape. Factors such as the effects of US President Donald Trump’s import tariffs have created uncertainty regarding trade and tax policies, according to Mrs. Auramon. Other contributing factors include geopolitical tensions and rising living costs.
She noted that the ratio of new business registrations to closures stands at 7:1, an improvement compared to the average 4:1 over the past five years.
Several factors are anticipated to align and support new business registrations in reaching the government’s target of 90,000-95,000 for the year, including a gradual recovery in exports and the overall economy. Mrs. Auramon highlighted that the Thai economy and global market are expected to benefit from increased private consumption, government investments, and initiatives like the Easy E-Receipt scheme, along with a surge in tourism during the peak season.
In February alone, 7,529 new businesses were registered, marking a 7.14% decline year-on-year and a total registered capital of 16.3 billion baht, which is a 19.8% decrease.
Additionally, Mrs. Auramon mentioned a rise in foreign investment, particularly in sectors that facilitate the transfer of specialized knowledge and technology. In the first two months, foreign investment grew by 68%, resulting in 73 new businesses registered year-on-year and an investment value increase of 8.74 billion baht, up 33%.
The top five foreign investors during this period were from Japan, China, Singapore, the US, and Hong Kong.
The DBD has identified promising growth opportunities in the flower, ornamental plant, and perennial plant sectors as of February. This includes areas such as ornamental plant gardening, plant cultivation, orchid growing, flower cultivation, and the retail and wholesale trade of flowers, plants, and seeds.
