New business registrations rise, signaling economic optimism
Confidence is returning to Thailand as new business registrations rose by 13 percent year-on-year in February, according to the Ministry of Commerce. The figure represents a strong signal that economic optimism is increasing despite the pandemic.
The Department of Business Development said that 7,265 new enterprises registered with the Ministry in February, the second straight month that new businesses topped the 7,000 mark.
“This reflects a business recovery and rising economic confidence,” said Thosapone Dansuputra, Director-General of the Business Development Department.
The top three sectors for newly registered businesses in February were building and construction (570), real estate (283) and rice plantations (225), which made the top three for the first time.
Thailand is one of the world’s leading rice exporters, and its white grade B rice is used as the global benchmark for rice prices. Its specialty strain, Hom Mali, is considered among the top echelon in terms of quality.
For the first two months of the year, new registrations rose 9 percent year on year with 14,548 newly established firms with a combined registered capital of $1.6 billion.
Fewer businesses failed in February compared to last year. Business liquidations dropped by 28 percent, with 583 firms shuttering their premises.
The Department believes between 64,000 and 66,000 new companies will notify the Ministry of their establishment in 2021. This is despite a recent COVID-19 outbreak that could cause a pause in positive sentiment.