Thailand Business Closures Rise as Higher Costs Pressure Companies

Thailand business closures increased sharply during the first half of 2026 as rising operating costs, subdued consumer demand and intensifying competition forced more companies to cease operations, according to the Department of Business Development.

A total of 7,024 businesses closed during the six-month period, an increase of 12.5% from a year earlier.

Registered capital associated with those closures surged to THB98.9bn (USD3.02bn), up 224%, indicating that larger businesses were also affected.

Construction recorded the highest number of closures, followed by real estate and electrical installation firms.

Despite these challenges, new business registrations rose 2.1% to 44,773, although associated registered capital declined 25.4% to THB111bn, reflecting more cautious investment sentiment.

Restaurants, online retailing and clothing stores led new registrations.

Officials said smaller enterprises continued to face financing constraints, higher operating costs, limited market access and increasing competition from digital platforms and overseas businesses.