Business dissolution increases by 73 per cent

[Thaivisa News]

Bangkok: – The registrations of new businesses have risen 16 per cent in February and the collapsed businesses increase by 73 per cent due to tightening control of lottery vendors.

Business Development Department director general Pongpun Gearaviriyapun said her department registered 5,631 new businesses last month.

Despite the increase in business registration, the registered capital has lowered to 14.8 billion baht, a drop of 3.7 billion baht or 20 per cent in comparison to last February.

For January and February, some 11,600 new businesses have been registered, an increase of 14 per cent.

This year’s projection for 60,000 to 65,000 new businesses should be achievable, Pongpun said.

The growth of business newcomers will hinge of the recovery of the world economies and the domestic economic revitalisation through government investment and spending, she said.

In regard to business disbandment, some 1,113 businesses with 1.9 billion baht in registered capital dissolved last month.

This year’s first two months saw the dissolutions of 2,493 businesses, an increase of 20 per cent in comparison to the same period last year.

Despite the increase of business disbandment, the amount of dissolved registered capital decreased by 20 per cent, which indicates the majority of failed businesses involve small enterprises.

The change in business registration rules for lottery has led to an increased disbandment of lottery enterprises and a drop in new lottery vendors.

Under the past rules, a monthly average of 607 newcomers would register as lottery vendors. And about 77 vendors would disband their business.

After introducing the new rules, only about 112 newcomers would enter the market while 102 existing vendors would quit.

The new rules are designed for the identification of individual vendors in order to prevent proxy registration.

[Pib]

I wonder if a lottery vendor is any person who bought a license to sell lottery tickets which can be mom, pop, or just any person. I expect many, many lottery vendors give lottery ticket selling a try for a few months and then decide it's too boring setting behind a table full of lottery tickets for sale all day and into the night. Now hopefully lottery sellers riding around on their bicycles selling tickets from the handlebars are not considered a vendor needing a license....I expect these bicycle lottery ticket sellers get their tickets from a licensed vendor, but I'm guessing.

[clockman]

Can you build a modern society, based on lottery sales? Remember this is goverment controlled! That is except for the illeagal lottery.

[Srikcir]

Thailand has only domestic consumption and government spending to drive GDP growth for 2015.

Exports have shrunk, again.

Thailand's shift to more foreign trade with Russia and China has resistance to currency swings and slow GDP growth.

Thailand lost trade protections in the UE

Thailand is struggling to avoid US sanctions for Tier 3 listing

CPI has increased despite lower energy prices.

Income tax collection was down for 2014 and first quarter 2015. New taxes for increased revenues have been delayed.

Government spending is at best disappointing.

SME's are collapsing which also lowers tax revenues.

The Junta has run out of solutions to meet Prayut's 4% GDP growth for 2015. Compared to previous PTP and Democrat regimes, Prayut can claim to have the greatest impact on the Thai economy - a negative impact.

[Alwyn]

Darn those crazy lottery sellers for collapsing the Thai economy like that

[bangkokheat]

property values and rents are going crazy, business' are shutting down, this year will be a test for the well prepared and brave

[FangFerang]

"collapsed businesses increase by 73 per cent due to tightening control of lottery vendors"

The problem was overstated and misleading.

[fletchsmile]

What a mish mash of statistics. Seems like they weren't sure what point(s) they wanted to make.

YTD new business registrations of 11,600 up 14%.

YTD businesses closed 2,493 up 20%.

Doesn't look that bad to me in the context of where the global economy is.

Then a "lot" of small lottery vendors closed down because of new rules.Apart from being a very small part of the economy that's hardly going to affect the country much.

Plus I assume they're included in the stats above so they distort them. Seems like new lottery registrations are down 495 a month and exits up 25. Adjust for these and on a like for like basis new business growth % probably exceeded growth for those closing down

Couldn't see where the 73% increase in business collapses came from, which is supposedly the headline and main point.

Cheers

Fletch

Edited March 16, 2015 by fletchsmile