AEC to spark surge of new firms

"More businesses in various industries, mainly construction, trading and services, will set up in Thailand next year, as they see greater opportunities for growth from Asean’s integration and the strengthening of the economy in the country," Pongpun Gearaviriyapun, director-general of the Business Development Department, said yesterday.

The Kingdom is considered the centre of regional integration with the linkages to penetrate other Asean nations,

according to the department.

The positive outlook for next year will encourage more start-ups.

Economic growth in the country is expected pick up to 3.5-4 per cent from 2.5-3.5 per cent expected this year, thanks partially to the dividends from seamless trade and services.

Consumer confidence will get a boost from the government’s investment and stimulus packages.

60,000 for this year

For this year, the department expects about 60,000 companies to be established in line with the 2.8-per-cent expansion expected for the economy. The government’s short-term stimulus package should start showing results by late this year.

New company registrations slipped slightly by 1 per cent year on year to 5,231 last month because of a reduction in the number of lottery vendors after the introduction of controls on lottery prices.

Initial investment capital last month rose 4 per cent on year to Bt21.08 billion.

In the first 10 months of this year, 52,390 fresh companies were registered, while 14,049 shut down.

In October alone, business closures rose 33 per cent on year to 2,187.

Most of the new firms are engaged in construction, property development, restaurants and food retailing, consulting and machinery trading.

More than 618,382 firms are actively operating in the country, of which 1,109 are public companies.