Record new-firm tally
The number of newly registered companies in Thailand reached the highest figure in a century of record-keeping last month, attributed to improved investor sentiment after post-flood relief measures started to take effect.
The Business Develop-ment Department reported yesterday that the number of newly registered companies grew by 12 per cent year on year in February to 5,747. New investment capital rose 47 per cent to Bt29.76 billion.
Deputy Commerce Minister Siriwat Kachornprasart attributed the growth to strong economic fundamentals reasserting themselves after the flood receded, and high investor confidence upon seeing clearer government measures for flood prevention.
“If no serious negative factors hit investor confidence, the number of new businesses in the Kingdom should see stable growth and create more employment,” he said.
Siriwat expressed concern, however, on some factors that could affect new-business growth and cause businesses to collapse in the future. These are the tension between the US and Iran driving up global fuel prices, the financial crunch in the European Union, higher production costs, and rising goods prices.
New businesses that were registered last month were mostly involved in entertainment service, construction and property development, and wholesale of machinery and equipment. The first two months saw 10,834 new firms, an increase of 3 per cent year on year. The department projected that the number of new companies would grow by an average of 10 per cent to reach 60,000 firms by the end of the year.
Last month, the number of closed-down businesses jumped 113 per cent year on year to 770 as many construction companies completed their contracts and wound up their business. But month on month, business closures were down by 29 per cent.
For the first two months of 2012, the number of business closures grew by 94 per cent year on year to 1,864.
Siriwat said a certain number of shutdowns was normal, with most of the businesses that were wound down having been set up to serve particular projects and their contracts having expired. Only a few firms had to cease operating because of a lack of liquidity or tough competition.
Currently 501,749 companies and 920 public companies are active in the Kingdom.
