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Thai business closures rise 8.3% in first four months

Thai business closures rise 8.3% in first four months

BANGKOK: A total of 3,921 businesses in Thailand ceased operations in the first four months of 2025, an increase of 8.3% compared with the same period last year, according to the Department of Business Development.


By Bangkok Post

Friday 30 May 2025 01:24 PM


A miniature housing model is displayed at a house and condo fair held at the Queen Sirikit National Convention Center in Bangkok. Photo: Somchai Poomlard / Bangkok Post file

A miniature housing model is displayed at a house and condo fair held at the Queen Sirikit National Convention Center in Bangkok. Photo: Somchai Poomlard / Bangkok Post file

With lawmakers expressing concern over rising business closures during this week’s debate on the government’s B3.78-trillion budget for fiscal 2026, the department reported that the total registered capital of closed businesses was B15.99 billion, reports the Bangkok Post.

The top three sectors with the highest closures are:

  • General construction - 372 closures, registered capital of B652mn
  • Real estate - 184 closures, registered capital of B912mn
  • Restaurants/eateries - 159 closures, registered capital of B391mn

Key factors behind closures include soaring household debts that have reduced consumer spending, a volatile global economy and uncertainty over US trade policies, the department said this week.

New business registrations totalled 30,148 during the same period, though this reflects a decrease of 1,385 registrations, or 4.4%, from the first four months of 2024.

The most active sectors for new establishments are:

  • General construction - 2,394 registrations, registered capital of B5.1bn
  • Real estate - 2,047 registrations, registered capital of B7.83bn
  • Restaurants/eateries - 1,237 registrations

Kasikorn Research Centre (K-Research) predicted that more Thai factories will close this year than in the past two years, citing a weakening manufacturing sector and ongoing economic challenges.

The four-day budget debate in the House of Representatives is scheduled to conclude with a vote on first reading scheduled for Saturday at 6pm.