Written by John LeFevre

BANGKOK: — The number of Thai companies that ceased trading during the first half of this year rose 22 per cent over the same period last year to almost 7,000, according to the Business Development Department (BDD).

According to the BDD 6,899 companies ceased operation In the the January to June period, with 1,681 firms closing in June alone.

Thai firms are facing increasing pressure from rising oil prices, an inflation rate that reached 8.9 per cent in June, a slow down in consumption, and growing political instability that has affected foreign investment.

In the same six month period 1,206 new companies were registered, an increase of 6 per cent over the same period in 2007, according to BDD deputy director-general Pranit Lortragood.

Thailand currently has a total of 548,818 registered companies.