President of the Thai Bankers Association, Khunying Jada Wattanasiritham, also president of Siam Commercial Bank, said the news was not a surprise, but it was a pity Somkid would not continue to hold a political position.

"Khun Somkid is capable and has a good understanding of the economy. His capability in business and marketing is widely accepted and helped restore confidence. I'm not surprised about his decision. Over the past months, he has made it widely known that he does not want to remain in politics," she said.

Somkid could not be reached for comment last night. The news was revealed by caretaker Health Minister Pinij Charusombat, who vowed not to take a portfolio in the new government if Thai Rak Thai wins a majority of seats and is able to take office again.

Pinij said Somkid was thinking of ending his involvement in politics and going back to be an academic.

The announcement came amid rumours of a deep rift between Thai Rak Thai leader Thaksin Shinawatra and Somkid. Over the past months, Somkid has led a number of overseas trips, apparently to avoid being in the Kingdom.

Caretaker Finance Minister Thanong Bidaya also said it was a pity that Somkid would not hold any position in the new government.

"He should not have made such an announcement as he's a capable man. If I were him, I would not do that," Thanong said.

Jit Siratranont, deputy secretary-general of the Thai Chamber of Commerce, said Somkid's decision would definitely affect business confidence. "Dr Somkid's personality is more impressive than other ministers. Most businessmen had confidence that he could forge further economic growth. We're not sure who will be able to take his position."

Jit said if Somkid disappeared from the scene, Thai Rak Thai would have problems finding a new economic leader as capable as him to boost business confidence.

"Business people do not mind whether Thai Rak Thai or the Democrat Party form the new government, as long as the prime minister and economic chief can work together to facilitate economic expansion," he said.

Chookiat Ophawongse, president of the Thai Rice Exporters Association, said Somkid would be difficult to replace as he was the best facilitator and his track record boosted trust among local and foreign business communities. "Dr Somkid is capable of being the next prime minister."

Chookiat said business communities' support for political parties would hinge largely on their economic teams.

Vice chairman of the Federation of Thai Industry Nipon Surapon-grakcharoen said he would prefer to hear from Somkid if he really wanted to end his political career.

"However, if the report is real, we [business people] may lose some confidence since Dr Somkid has performed really well in driving the economic growth," he said.

A source from a foreign brokerage house said Somkid's decision not to hold a political position was a bad sign for Thai politics. The view among the capital market and foreign investors was that the minister is Thaksin's best assistant. Foreign investors rated his credibility as high as Bank of Thailand Governor Pridiyathorn Devakula.

"If he has opted out, in foreigners' eyes, it would be a negative for the new government," he said.

Without Somkid, investors may perceive that budget management may not be well controlled, he said. The government has several "mega projects" to look after - rail lines in Bangkok - and the recent decision to get the Government Savings Bank to finance TMB Bank's share purchase would compound the government's revenue shortfall.

 Business Reporters

 The Nation