New business registration is likely to stay flat this year, as the country is weighed down by a strong baht and the US-China trade spat.
Most investors are taking a wait-and-see approach about the new government's economic policies before making any decisions, said Sorada Lertharpachit, deputy director-general of the Business Development Department.
She said the department predicts new business registrations in 2019 will stay unchanged at 72,000.
Yesterday it reported new business registration fell 14% year-on-year in June to 5,586, with registered capital worth 15.1 billion baht, down 38%.
The fall was attributed largely to a lack of business confidence in the country's economic prospects, the ongoing US-China trade war, and volatile foreign exchange and oil prices. Investors also waited for clarity on the new government's formation, said Ms Sorada.
For the first six months of the year, new business registration edged up 2% year-on-year to 38,222, with registered capital tallying 118 billion baht, down 18%.
The top three businesses were building and construction, property and restaurants.
"We expect new business registration will rise in the third quarter, supported by the new government's economic stimulus packages and accelerated state infrastructure investments," said Ms Sorada. "Mass transit construction will also drive the new property development projects along mass transit routes."
Yet economic and political factors are likely to weigh on investor confidence in setting up new businesses in the third and fourth quarters.
The department reported 1,264 companies were liquidated in June, down by 9% from the same month last year. For the first six months that figure was 6,667, up 6% year-on-year, with registered capital a combined 22.3 billion baht, down by 43% year-on-year.
