August sees drop in new registrations

August sees drop in new registrations

New business registrations continued to fall in August, dipping 7% from the same month last year as the business sector frets over the pandemic.

The Business Development Department reported yesterday new business registrations totalled 5,538 in August, with combined registered capital worth 14.3 billion baht, a decrease of 17% from last year.

On a monthly basis, the number of new business registrations dropped 2% from July, while registered capital fell 14% from the previous month.

The top three sectors for new business registrations in August were building and construction (548), real estate (284), and logistics, transport and delivery services (162).

Sorada Lertharpachit, deputy director-general of the department, said most business operators remain worried the pandemic will continue to cripple the economy, with a recovery led by the government's spending and stimulus measures, investment acceleration and virus impact relief plans that have been gradually introduced.

Ms Sorada said cleaning businesses reported a spike in registrations in August as demand increased to stunt the spread of Covid-19.

She expects businesses related to tourism, tour guides, restaurants and food chains will be likely to recover after the government recently unveiled tourism stimulus measures.

The number of businesses that ceased operation in August totalled 1,337, up 24% year-on-year from the same month last year and down 6% from June.

Registered capital was 5.40 billion baht, down 81% year-on-year and a decrease of 29% from July.

The top three sectors ceasing operations were building and construction (115), real estate (65), and restaurant and food outlets (38).

For the first eight months of the year, total new business registrations amounted to 44,542, down 12%, with combined registered capital of 136 billion baht, down 14% from the same period of last year.

Businesses that ceased operations for the period totalled 8,825, down 12%, with registered capital of 39.4 billion baht, a dip of 34%.

For the whole year, Ms Sorada said the number of new business registrations is estimated at 65,000-70,000.

Before the outbreak, the department expected the number of new business registrations this year to stay in a range of 70,000-72,000.

Last year the department reported new business registrations totalling 71,485, down 1% from 72,109 in 2018.

Total registered capital for new registered businesses was 327 billion baht in 2019, down 13% from 374 billion the previous year.

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