New business registration highest since January 2019

New business registration topped 7,283 in January, the highest since January 2019, driven by the promise of Covid-19 inoculations and upbeat sentiment on the country’s economic outlook.

The figures also rose 4.91% from the same month last year and surged by 121% month-on-month from 3,287 in December.

Thosapone Dansuputra, directorgeneral of the Business Development Department, said the new business registration trend in 2021 is expected to come in line with the country’s GDP outlook which is expected to recover thanks to the mass distribution of vaccines against Covid-19.

The government’s policy to gradually ease its strict lockdown measures also helped to increase economic activities and stimulate travel, he said.

According to Mr Thosapone, the amount of registered capital of new businesses in January also rose by 90.3% year-on-year to 30.9 billion baht and up 12.1% month-on-month from 27.6 billion baht in December.

The top three sectors for new business registrations in January were building and construction (634), real estate (299) and transport and logistics (192).

Business liquidations were also reported down by 21% in the first month of the year to 1,105 with 7.91 billion baht worth of registered capital, according to Mr Thosapone.

The top three liquidated businesses were general building and construction, real estate and restaurant.

The department expected the number of new business registrations is likely to stay in the range of 64,000 to 66,000.

Active registrations are expected to be businesses related to tourism, restaurants, digital platform, applications, transportation and logistics services.

Last year, new business registrations in the country dropped for a full year to 63,340 from 71,485 in 2019.

The decline was mainly because of the government’s nationwide lockdown measures to curb the spread of the pandemic last year.