Thailand
Thailand: New business registrations poised to recover in year ahead
New business registrations are expected to recover to growth of 3.5-4.5% next year, driven by the economic recovery and availability of a Covid-19 vaccine.
Sorada Lertharpachit, deputy director-general of the Business Development Department, said the number of new business registrations next year is likely to stay in a range of 64,000 to 66,000, compared with 63,000 to 64,000 this year.
New business registrations totalled 71,485 in 2019, with the lower figure this year attributed to the state lockdown aimed at curbing the spread of Covid-19, which slowed economic activities.
New business registrations in 2021 should rise in line with the country’s economic recovery and successful Covid-19 vaccines, she said.
The National Economic and Social Development Council forecasts the economy will expand 3.5-4.5% in 2021 from a 6% contraction this year, mainly supported by improvement in domestic demand, global economic recovery and improved global trade.
Other factors supporting the positive outlook include the fiscal budget disbursement, stimulus measures and a low base from this year.
According to Ms Sorada, new registrations are anticipated notably for businesses related to technology, online shopping, food delivery, logistics services and healthcare products such as medical supplies.
In a related development, the department yesterday reported new business registrations in November stood at 4,479, down 10% from the same period of last year.
On a monthly basis, registrations fell by 17% from 5,396 in October, attributed largely to the annual low registration season.
The amount of registered capital totalled 15.6 billion baht in November, down 27% year-on-year and down 64% from 43.7 billion baht in October.
The top three sectors for new business registrations in November were building and construction (458), real estate (244) and restaurants (163).
The restaurant business is recovering from the tourism stimulus package and the co-payment scheme, but the new Covid-19 outbreak in Samut Sakhon may lead to people suspending travel plans, she said.
The number of businesses that reported liquidation reached 14,907 in November, down 9% year-on-year, with registered capital worth 75.1 billion baht, down 17% from last year.
For the first 11 months, the number of business registrations stood at 60,053, down 12% year-on-year, with registered capital worth 208 billion baht, down 32% year-on-year.
Source: https://www.bangkokpost.com/business/2040915/new-business-registrations-poised-to-recover-in-year-ahead