1,973 Thai businesses close shop for good in October
TUESDAY, NOVEMBER 29, 2022
As many as 1,973 businesses with a total registered capital of 7.3 billion baht ceased operations last month, the Business Development Department said.
Jittakorn Wongkhetkorn, deputy director-general of the department, said on Tuesday that the top three businesses that shut down were:
• General construction: 166 firms (8% of total)
• Real estate: 125 (6%)
• Restaurants: 44 shops (2%)
He said most of the businesses that closed operations in October had a registered capital of 1 million baht or less.
The registered capital of the 1,973 companies was:
• 1 million baht or less: 1,417 (71.82%)
• 1-5 million baht: 472 (23.93%)
• 5-100 million baht: 78 (3.95%)
• Over 100 million baht: 6 (0.30%)
However, Jittakorn said, 5,911 new businesses were set up in October with a total registered capital of 34.61 billion baht.
He said the top three types of newly registered businesses in October were the same as those that closed down in the month.
• General construction: 502 companies (9%)
• Real estate: 479 (8%)
• Restaurants: 273 (5%)
As of October, 849,958 businesses with a combined registered capital of 20.56 trillion baht were still in operation, Jittakorn said.
Despite the closure of so many businesses in the month of October, the Bank of Thailand and commercial banks maintain their projection of a 3.2-3.3% economic growth in Thailand.
Baht plunges as China Covid protests rock investor sentiment
TUESDAY, NOVEMBER 29, 2022
The baht opened at 35.75 to the US dollar on Tuesday, plunging from Monday’s close of 35.54.
The currency will likely move between 35.65 and 35.90 against the greenback during the day, Krungthai market strategist Poon Panichpibool said.
Poon said the baht is fluctuating under pressure from China’s Covid-19 situation and protests. The protests added to concern over economic slowdown in China, Southeast Asia’s top trading partner.
Poon said short-term downward pressure on the Thai currency will persist while the currency market remains in a risk-off state.
Purchases of gold after the price dropped were also causing the baht to weaken, he said.
However, the currency is unlikely to test its resistance level at 36 to 36.10 per dollar since concern over foreign sell-offs of Thai assets had not materialised. Instead, foreign investors began buying more short-term bonds on Monday, Poon said.
He added that investors might not adjust their positions until the US Federal Reserve’s announcement on Wednesday, which is expected to signal a slower pace of policy rate hikes.
Poon advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.