By Nuzla Rizkiya

The number of new private company registrations reached a new high in August 2024, with 2,654 new businesses incorporated, marking the highest monthly total recorded so far this year. 

According to the data from the Registrar of Companies Department, the figure reflects a 23.32 percent year-on-year (YoY) increase, compared to the 2,152 companies registered in August 2023.
Between January 01 and August 31, a total of 17,514 new companies were incorporated, representing an 18.57 percent rise from the 14,762 businesses registered during the same period in 2023. 

This rise in registrations signals an upward trend in business activity throughout 2024, with analysts attributing the growth to increasing entrepreneurial confidence, as the country’s economy continues its recovery.

April 2024 saw the highest YoY growth of the year, with 2,022 new companies registered, marking a 47.37 percent increase, compared to the 1,372 companies incorporated in April 2023.  However, June 2024 marked the first instance of a negative YoY growth, with a 1.41 percent decline in registrations, compared to 1,916 in June 2023. The month also recorded the lowest number of registrations for the year, with only 1,889 new businesses incorporated.

Despite the dip in June, the upward momentum resumed in July 2024, with 2,209 company registrations.

For the quarter ending in June 2024 (2Q24), a total of 5,956 companies were registered, reflecting a 19 percent increase, from the 5,004 companies incorporated in 2Q23 and a 41.4 percent increase from the 4,210 companies registered during 2Q22.

The first quarter of 2024 was also strong, recording 6,695 new companies, with 1,995 in January, 2,260 in February and 2,440 in March. 

April saw the first dip in this trend, with 2,022 new incorporations. May saw a marginal increase to 2,035 registrations before the dip in June.

In terms of performance for the year, the overall figures depict a 12.4 percent decline in company registrations in 2Q24 compared to the first quarter.

Despite the dip, the year-to-date numbers still reflect a positive trend in business activity compared to the figures since the economic crisis in 2022.