New business registrations rose by 26 per cent year on year to 6,200 last month, for a total of 42,911 companies in the first eight months, up by 3 per cent year on year.

Pongpun Gearaviriyapun, director-general of the department, attributed the rising number of new companies to the government measures to promote investment, mostly in the construction sector, while strong tourism growth was also encouraging new enterprises.

She added that her own department’s measures to facilitate new enterprises had also contributed to the establishment of new businesses.

The expectation that gross domestic product could grow by 3.2-3.5 per cent this year has also encouraged the setting up of new firms, she said.

Most of the new companies are engaged in construction, property development, machinery wholesaling, restaurants and food retailing, and consulting.

The department expects about 60,000-65,000 new companies to be established this year.

However, Pongpun said there remained some risks that could deter enterprises’ decisions to expand, including a sluggish export sector and fluctuating oil prices, as those factors could affect spending power.

Initial investment capital last month was up by a significant 46 per cent year on year to Bt19.36 billion.

The department also reported that 1,747 companies shut down last month, up by 13 per cent year on year. In the first eight months, the number of business closures dropped by 0.02 per cent year on year to 9,986.

A total of 641,396 companies are actively operating in the country, of which 1,144 are public companies.