BUSINESS NAME registrations fell 8.9% year on year in July to 79,316, the Department of Trade and Industry (DTI) said, with analysts attributing the decline to the ban on Philippine Offshore Gaming Operators (POGOs).
According to the DTI’s business name registration system, 69,709 were new business name registrations in July, while 9,607 were renewals.
In the first seven months, registrations amounted to 708,336, down 7.5%. Of these, 607,129 were new business names while 101,207 were renewals.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the POGO exit, could have reduced the number of new ventures or suppliers catering to the operators.
“The resulting slowdown in the real estate sector in terms of higher vacancies after the exit of POGOs could have also (disrupted) the supply chains of some property companies, thereby slowing down new business ventures that would have otherwise serviced them,” he added.
He said the new US tariff regime could have reduced the appetite for opening new businesses.
“Higher US tariffs and other protectionist policies could have led to some caution, especially from the point of view of some exporters and those belonging to the supply chains of global exporters,” he said.
“This may have slowed down new investment and expansion plans, global trade, employment, and overall world economic growth,” he added.
US President Donald J. Trump imposed a 19% duty on goods from five members of the Association of Southeast Asian Nations.
The new rate will take effect on goods coming from the Philippines, Cambodia, Malaysia, Thailand, and Indonesia starting Aug. 7.
Some 84.42%, of business registrations were filed online, while 13.6% were done through a combination of online and on-site transactions.
Women-led businesses accounted for 60.26%, or 429,574, of the total registrations.
Region IV-A accounted for 129,971 registrations, followed by the National Capital Region and Region III, which had 94,645 and 92,991, respectively.
Some 351,176 registrants were engaged in retail trade, excluding motor vehicles and motorcycles.
Also topping the registration list were companies engaged in food and beverage services, real estate, other personal activities, and wholesale and retail trade and repair of motor vehicles and motorcycles. — Justine Irish D. Tabile