Closures jump 17% in first 8 months
THE NUMBER of business closures increased considerably in the first eight months as a result of lower crop and fuel prices and the strict regulating of the lottery industry, said the Business Development Department.
The department reported that the number of business closures rose 17 per cent year on year to 9,984 compared with 8,563 during the same period in 2014.
Pongpun Gearaviriyapun, director-general of the department, said that while the increase in closures was quite high, it was not a surprise because firms selling lottery tickets accounted for most of the shutdowns.
Last month, the number of closures increased 25 per cent from August 2014 to 1,542. Most were lottery companies, followed by construction, property-development, and retailing companies.
The department reported that the number of new companies increased by 4 per cent year on year during the first eight months to 41,857 firms, indicating that the business sector remains confident that the economy will continue to recover.
In August, the number of new companies was down 6 per cent year on year to 4,912 and down 9 per cent from July.
The upcoming full implementation of the Asean Economic Community, the establishment of special economic zones, and the government’s recently launched economic stimulation packages should encourage more investment in the long term, Pongpun said.
Her agency projects that this year will see between 60,000 and 65,000 newly registered companies.
The total value of companies’ initial-investment capital in August was down 35 per cent year on year to Bt13.24 billion.
There are 617,851 registered businesses operating in the Kingdom.
