The number of new businesses registered with the Commerce Ministry last year hit a five-year high thanks to the recovering economy, growing tourism, the government's massive investment in infrastructure projects and the state welfare scheme.
Kulanee Issadisai, director-general of the Business Development Department, said new business registrations amounted to 74,500 in 2017, up 16% from 64,200 in 2016.
The total registered capital of new companies also surged 119% year-on-year to 519 billion baht.
"The number of new business registrations in 2017 outstripped the department's forecast of 70,000," she said. "It was largely because of the government's tax incentives to support individual entrepreneurs, especially for gold trading, drug stores and real estate, to establish their businesses through juristic persons. The government's massive investment in myriad transport infrastructure projects also helped build up the confidence of the private sector."
The department reported there were 21,400 companies liquidated, up 2% from 2016, with total registered capital of 101 billion baht, down 31%.
Ms Kulanee said the department expects the number of new business registrations to continue to rise this year by 75,000. She said the country's economy will continue to grow, thanks to increasing tourist arrivals, active state investment and the government's welfare scheme for low-income earners.
The cabinet recently approved 35.7 billion baht for the second phase of the welfare scheme, aiming to help 1 million people cross the poverty line.
Some 5.3 million out of 11.4 million recipients of the government's welfare and subsidy scheme are living below the national poverty line, earning less than 30,000 baht a year.
The second phase will see the government allocate 35.7 billion baht to finance 34 projects that aim to raise the income of low-wage earners.
Last August, the cabinet approved the first phase of the aid package, worth 41.9 billion baht, for 11.7 million low-income earners -- 5 million of whom have income below the poverty line.
Under the scheme, the government transfers 200-300 baht a month to each welfare smart card.
Recipients earning less than 30,000 baht a year get a monthly allowance of 300 baht, while those with annual earnings of 30,000-100,000 receive 200 baht to buy discounted goods at Thong Fah Pracha Rat shops and other designated stores.
Each cardholder also receives 1,500 baht a month to subsidise transport and 500 baht for inter-provincial public buses, third-class trains, and local public buses and electric trains.
Under the second phase of the government's welfare and subsidy scheme, aimed at addressing the root causes of poverty, the government will allocate a combined 35.7 billion baht to finance 34 projects. The scheme also offers tax incentives to attract private companies to organise training for, or hire, low income earners.
For the second phase, the government will also offer each recipient monthly allowances of 100 to 200 baht to buy goods at Thong Fah Pracha Rat shops, on top of 200-300 baht for those who volunteer for training programmes.
