They said that while the interim government's focus would be on political reforms, to ensure continued economic growth the government should also go ahead with some of the planned mega-projects, while stabilising oil prices and interest rates.

"Khun Thaksin did the right thing. The new prime minister should ensure that all ongoing projects proceed as planned. Somkid Jatusripitak will be able to help Thailand record economic growth of at least 4-5 per cent this year," said Pramon Suthivongse, chairman of the Thai Chamber of Commerce. "The government should also go ahead with some of the urgent mega-projects. Any project which is not necessary should be postponed so that the new government could consider their long-term economic value," he said.

He also urged the to-be-formed government to press ahead with free trade agreements, particularly the deal with Japan which should be signed immediately. Meanwhile, the government should also proceed with negotiations on the Thai-US agreement, but it also needs to reveal all details to the public.

Ninnart Chaitheerapinyo, chairman of the Federation of Thai Industries' auto industry club, praised Thaksin for stepping down. He also said he favoured Somkid as the next prime minister.

"He has knowledge and experience in economics and finance. What the new government should be concerned with is the spike in oil prices, interest rates and exchange rates. An equilibrium should be established," he said.

He also said that the economy would continue its expansion after stagnating in the first three months of the year due to the political turmoil.

"If the situation remains favourable, domestic auto sales this year should expand 5-8 per cent as targeted, to about 750,000 units, while exports should increase 25 per cent to 550,000 vehicles," he said.

Thaksin yesterday appointed his long-time friend and deputy Chidchai Vanasatidya to work as caretaker prime minister in his stead when he leaves the country for a while.

Among candidates that include House Speaker Bhokin Bhalakula, Somkid - now caretaker deputy prime minister and

commerce minister - has gained overwhelming support from influential business associations to become the next prime minister.

Leaders of the associations agreed yesterday that Thaksin's resignation would unlock the prolonged impasse but they also believed that Thaksin would still have an influence over the new Cabinet.

Santi Vilassakdanont, vice chairman the Federation of Thai Industries, said now that Thaksin had stepped down, the opposition parties and the People's Alliance for Democracy should end their protests and economic growth would then increase confidence in the short and long term.

 "The economy should recover soon through the urgent promotion of tourism and investment by the government," said Santi, adding that the most suitable person to replace Thaksin is Somkid.

"Somkid specialises in economics and trade. He should be the leader as economic growth is expected after the recent suspension," he said.

Somkiat Anuras, deputy secretary-general of the Thai Chamber of Commerce, agreed. He noted that if political reform was to be the focus of the new government and that needs a legal expert, that expert should be appointed a deputy prime minister.

 "The prolonged crisis should recede step by step and things should get back to normal if the new leader immediately gets to work on boosting investment and trade," he said, adding that the economy should recover within three to six months.

Pronpinit Pornprapa, chairman of Siam Motor and Nissan Sales, said he was concerned that the conflict could resurface due to uncertainty concerning the new prime minister and renewed fighting between the government and the opposition.

Tienchai Mahasiri, president of the Thai Garment Manufacturers, said reactions from opposition parties and the PAD would soon indicate if the turmoil has ended.

Aat Pisanwanich, director of the Centre for International Trade Studies, said Thaksin's departure helped clear the conflict only 50 per cent. "It does not matter who the new prime minister is given that Thaksin will be behind the new leader," Aat said. 

Petchanet Pratruangkrai

The Nation