Business registrations in February see 11% spike

Business registrations rose 11% year-onyear in February, mainly for construction, real estate and logistics services, driven by economic growth prospects and government investment projects.

Kulanee Issadisai, director-general of the Business Development Department, said the number of new businesses registered with the Commerce Ministry in February totalled 6,356, up from 5,751 in the same month last year.

But t he total registered capital of new companies fell 35% to 17.6 billion baht.

For the first two months of this year, the number of new business registrations totalled 13,321, up 11% from the same period last year, with registered capital of 35.6 billion baht, down 18%.

Ms Kulanee said the Thai economy remains on course for continued growth, propelled by tourism, as indicated by the rising number of foreign tourists, particularly from China, Malaysia and Russia, and robust export growth.

The National Economic and Social Development Board forecasts the Thai economy will expand in a range of 3.6-4.6% this year, based on export growth of 6.8%.

Growth will be supported largely by global economic expansion, based on higher manufacturing output; an uptick in government expenditure and acceleration of public investment; private investment recovery; the continual expansion of key economic sectors; and improvements in employment and household income.

The government expects 37.6 million foreign visitors to spend 2.1 trillion baht this year, after welcoming a record 35.4 million foreign tourists last year.

Private consumption has also gradually recovered, while the government is ramping up economic stimulus measures, largely through fast-track transport projects, the Eastern Economic Corridor and its welfare scheme for low-income earners, said Ms Kulanee.

The department expects the number of new business registrations to rise by 75,000 this year.

The department reported the number of new businesses registered with the Commerce Ministry last year hit a five-year high thanks to the recovering economy, growing tourism, the government’s massive investment in infrastructure projects and the state welfare scheme.

New business registrations totalled 74,500 in 2017, up 16% from 64,200 in 2016. Total registered capital for new companies also surged 119% year-on-year to 519 billion baht.

New business registrations in 2017 outstripped the department’s forecast of 70,000, largely because of the government’s tax incentives to support individual entrepreneurs.