17% increase in business closures seen in May

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BANGKOK, 19 June 2015 – The Department of Business Development (DBD) under the Ministry of Commerce has reported a decrease in business registrations in May, whereas business closures were on the rise due to stricter regulation of lottery vendors.

Director-General of the DBD Pongpun Gearaviriyapun stated that, in May 2015, business operators submitted applications to establish a total of 4,526 new companies, representing a decline of 1 percent compared to the same month in 2014, and the combined capital was recorded at 17.5 billion baht. On the contrary, the number of companies being shut down during the month was at 977, edging up 17 percent.

Ms Pongpun pointed out that one of the reasons behind the drop in business openings was the enforcement of new restrictions on lottery vendors. Only 10 lottery entities were reportedly established in May, whereas a large number went out of business. In addition, she said the many holidays throughout the month also caused a slowdown in the registration activities.

However, the Director-General voiced belief that a higher record of business openings will be seen each month from now, thanks to the positive outlook on the Thai economy for the remainder of this year. The annual registration figure is currently estimated at 60,000-65,000.