The registration of new businesses dropped by 5% year-on-year during the first two months as operators took a cautious approach amid uncertainties, according to the Department of Business Development (DBD).
Auramon Supthaweethum, director-general of the DBD, said during the period 16,391 new businesses registered, down 5.09% year-on-year.
Registered capital totalled 41.3 billion baht, down by 9.85% year-on-year.
The leading sectors for new registrations were general building construction with 1,319 new businesses, followed by real estate with 1,085 registrations, and restaurants/eateries with 675 new establishments.
The decline in new business registrations was attributed to caution as they monitor the global economic environment, she said.
Factors such as the impact of US President Donald Trump's import tariffs caused uncertainty surrounding trade and tax policies, said Mrs Auramon, while other factors included geopolitical tensions and rising living costs.
She said the ratio of new business registrations to closures is 7:1, improving from an average of 4:1 over the past five years.
Several factors are expected to align to help new business registrations reach the government's goal of 90,000-95,000 this year, including the gradual recovery of exports and the overall economy, said Mrs Auramon.
The Thai economy and the global market should benefit from increased private consumption, government investments and stimulus such as the Easy E-Receipt scheme, as well as a surge in tourism during the high season, she said.
In February 7,529 new businesses registered, a drop of 7.14% year-on-year, with total registered capital amounting to 16.3 billion baht, down 19.8%.
Mrs Auramon said foreign investment is rising, particularly in sectors that promote the transfer of specialised knowledge and technology.
For the first two months, foreign investment increased by 68%, gaining 73 new businesses year-on-year, with an investment value growth of 8.74 billion baht, up 33%.
The top five foreign investors for the period were from Japan, China, Singapore, the US and Hong Kong.
The DBD identified promising growth potential in the flower, ornamental plant and perennial plant sectors in February, including ornamental plant gardening, plant cultivation, orchid growing and flower cultivation, as well as retail and wholesale for flowers, plants and seeds.
