Increase in Thai Business Closures and Decline in New Startups in Early 2025
Analysis reveals 8.3% rise in business closures and a 4% decrease in new startups amid economic challenges.
In the first four months of 2025, Thailand experienced a significant rise in business closures, with a total of 3,921 businesses ceasing operations.
This figure marks an 8.3% increase compared to the same period in 2024, as reported by the Department of Business Development.
The financial ramifications of these closures are notable, with a total registered capital of 15.99 billion baht among the businesses that shut down.
The construction sector reported the highest number of closures, totaling 372 businesses with a registered capital of 652 million baht.
The real estate sector followed with 184 closures amounting to 912 million baht, while the restaurant and eatery sector recorded 159 closures, which accounted for a registered capital of 391 million baht.
Various factors have been identified as contributing to the surge in business closures.
These include rising household debt levels that have constrained consumer spending, alongside a volatile global economic climate and uncertainties surrounding US trade policies.
In contrast, new business registrations during the same period totaled 30,148.
However, this reflects a decrease of 4.4%, equating to 1,385 fewer registrations compared to the first four months of 2024.
Despite the overall decline, the general construction sector led the way in new business activity, registering 2,394 new establishments with a combined capital of 5.1 billion baht, followed by the real estate sector with 2,047 registrations totaling 7.83 billion baht, and restaurants/eateries with 1,237 new registrations.
Forecasts from the Kasikorn Research Centre indicate that the trend of factory closures could escalate in 2025, as the manufacturing sector continues to face significant challenges amidst an unstable economic environment.
This situation was a central topic during a recent four-day budget debate in the House of Representatives, which focused on the government's proposed 3.78-trillion-baht budget for fiscal 2026.
The debate is scheduled to conclude with the vote on the first reading slated for Saturday at 6 PM.
This figure marks an 8.3% increase compared to the same period in 2024, as reported by the Department of Business Development.
The financial ramifications of these closures are notable, with a total registered capital of 15.99 billion baht among the businesses that shut down.
The construction sector reported the highest number of closures, totaling 372 businesses with a registered capital of 652 million baht.
The real estate sector followed with 184 closures amounting to 912 million baht, while the restaurant and eatery sector recorded 159 closures, which accounted for a registered capital of 391 million baht.
Various factors have been identified as contributing to the surge in business closures.
These include rising household debt levels that have constrained consumer spending, alongside a volatile global economic climate and uncertainties surrounding US trade policies.
In contrast, new business registrations during the same period totaled 30,148.
However, this reflects a decrease of 4.4%, equating to 1,385 fewer registrations compared to the first four months of 2024.
Despite the overall decline, the general construction sector led the way in new business activity, registering 2,394 new establishments with a combined capital of 5.1 billion baht, followed by the real estate sector with 2,047 registrations totaling 7.83 billion baht, and restaurants/eateries with 1,237 new registrations.
Forecasts from the Kasikorn Research Centre indicate that the trend of factory closures could escalate in 2025, as the manufacturing sector continues to face significant challenges amidst an unstable economic environment.
This situation was a central topic during a recent four-day budget debate in the House of Representatives, which focused on the government's proposed 3.78-trillion-baht budget for fiscal 2026.
The debate is scheduled to conclude with the vote on the first reading slated for Saturday at 6 PM.
