Thai business closures rise 8.3% amid economic concerns
DBD blames debt, spending, economy, and US trade policy for shutdowns
Thailand’s business landscape is facing stormy skies as nearly 4,000 companies shut their doors in just the first four months of 2025 — an 8.3% increase from the previous year, according to the Department of Business Development (DBD).
This surge in closures, with a combined registered capital of almost 16 billion baht, has alarmed lawmakers during this week’s heated budget debate.
Despite 30,148 new businesses launching during the same period, registrations dropped by 4.4% compared to early 2024, signalling a cautious approach among entrepreneurs amid economic uncertainty. The DBD did no= specify which industries suffered the most closures or welcomed the most start-ups.
Lawmakers raised concerns during discussions over the proposed 3.78 trillion baht fiscal 2026 budget, stressing the urgent need to address the underlying issues pushing companies out of business. The department pointed to rising household debt, reducing consumer spending power, ongoing global economic volatility, and unclear US trade policies as key culprits behind the uptick in shutdowns.
Kasikorn Research Centre (K-Research) echoed these concerns, warning that factory closures are expected to surpass the numbers seen in the last two years due to a faltering manufacturing sector and persistent economic headwinds, reported Bangkok Post.
The four-day budget deliberation in the House of Representatives, ongoing this week, will culminate in a first reading vote on Saturday at 6pm. As policymakers weigh fiscal priorities, the growing wave of business closures serves as a stark reminder of the challenges Thailand must overcome to stabilise its economy and inspire confidence in the private sector.
With rising debts, a shaky global market, and shrinking consumer demand, the pressure is mounting for swift government action to halt the business downturn and support new ventures. The coming months will be critical for Thailand’s economic resilience as it battles to keep its entrepreneurial spirit alive amidst uncertainty.
In similar news, Thailand’s Tourism Ministry lowered its 2025 tourism revenue forecast to 3 trillion baht from 3.5 trillion baht due to various challenges.
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