A total of 7,024 businesses ceased operations in the first half of this year, up 12.5% year-on-year, with total registered capital of 98.9 billion baht, an increase of 224%, according to the Department of Business Development (DBD).
The sectors with the highest upticks for closures were general construction with 671 closures and registered capital of 1.64 billion baht; real estate with 400 closures and registered capital of 4.21 billion baht; and electrical installation with 89 companies and registered capital of 124 million baht.
Poonpong Naiyanapakorn, director-general of the DBD, said the data reflects not only a rise in business closures, but also likely an increasing number of dissolutions among companies with massive registered capital.
The trend may signal mounting pressure on businesses, driven by rising costs, slowing consumer demand, intensifying competition and broader economic conditions, he said.
During the first half, new business registrations totalled 44,773, up 2.13% year-on-year for an increase of 935 businesses. However, the total registered capital for the new companies dipped by 25.4% to 111 billion baht.
The top three sectors with significant growth in new registrations were restaurants/eateries with 2,119 establishments and registered capital of 3.45 billion baht; online retail with 1,296 registrations and registered capital of 2.12 billion baht; and retail clothing with 499 registrations and registered capital of 696 million baht.
The rise in new registrations and decrease in registered capital suggests entrepreneurs are entering the market cautiously, committing less initial investment.
The DBD noted that businesses continue to face elevated costs, including energy, raw materials, wages, rent and financing, which have limited the expansion capabilities of many companies.
Consumer spending has yet to recover broadly, placing pressure on businesses reliant on domestic consumption, particularly retailers, restaurants, service providers, and small and medium-sized enterprises, to manage costs and liquidity.
Although overall business investment and new company registrations have increased in certain sectors, the recovery remains uneven.
Large corporations and businesses operating in future industries are generally better positioned to adapt, while smaller firms continue to face pressures from limited access to financing, rising operating costs, restricted market access, and growing competition from digital platforms and foreign companies, noted the department.
