Business closures down

The number of newly operated businesses in Thailand has surged so far this year, while the number of business closures has fallen, demonstrating more confidence on the part of enterprises to run businesses amid strong economic growth.

The Business Development Department yesterday reported that the number of newly established companies in January and February had risen by 23 per cent to 6,960 from the same period last year, when 5,320 firms were set up.

Business closures in the period fell 34 per cent to 933 firms. Some 1,411 companies closed their doors during the first two months of last year.

"Rising numbers of new firms and a drop in business closures clearly show that enterprises have high confidence in economic fundamentals. The increase in the [daily] minimum wage to Bt300 has not yet had an impact on enterprises in terms of more business closures," said Deputy Commerce Minister Natthawut Saikua.

Positive factors attributed to the establishment of more new firms include strong economic growth, the government's soft loans to promote employment and the cut in corporate tax.

There is also the extension of the first-house scheme to March 29 this year, which has supported growth among property and construction businesses.

In February, newly registered businesses declined slightly by 0.1 per cent from the same period last year to 5,736 companies, while initial investment capital rose 20 per cent to Bt35.76 billion.

Most new businesses registered during the month were in the fields of construction and property development, and entertainment.

The number of collapsed businesses last month dropped 13 per cent year on year, to 664 firms.

According to the department, the number of new companies normally exceeds the number of collapsed firms by a factor of 5:1 in a healthy economy. However, for last month the ratio was a very healthy 9:1, it reported.

Meanwhile, to increase the efficiency of the country's traditional retail shops, the department has drawn up a plan to develop their operations into a more modern style so that they can compete with convenience stores.

The department will dispatch teams to train retailers in each community, as well as organise seminars to educate retailers on a new style of operation.

The agency has about 400,000 retailers on record across the Kingdom.