On the contrary, the lack of cultural sensitivity and the government's hard-line approach have further exacerbated the problems, resulting in a widespread distrust of the government. This in turn discourages the cooperation of the general public, which is the most significant factor in the attempt to solve this problem.

One way of winning the hearts and minds of Muslims is through an increased commitment to the establishment of an Islamic banking system - an idea that has been overlooked by the National Reconciliation Commission. Adopting such a system would express the government's sensitivity towards the Islamic way of life, thus leading to a stronger appreciation of the government by local Muslims. This could be a "reconciliation vehicle" for ameliorating the situation in the South.

Although the Finance Ministry supported the establishment of the Islamic Bank of Thailand, which has been operating branches in southern provinces since 2002, it did little to promote the new Shariah-compliant financial entity so that it could become a viable financial service provider for Muslim as well as non-Muslim clients.

There have been ample efforts on the part of the Islamic Bank of Thailand to see the bank become a recognised service provider in Thailand. Currently, the Islamic Bank is pushing the Stock Exchange of Thailand (SET) to establish an index for Shariah-compliant equities to attract local and international Muslim investors. The SET is conducting a cost-benefit analysis of this programme prior to making a decision on the creation of an Islamic index. In the last quarter of 2005, the bank also bought Krung Thai Shariah, which led to an increase in its assets from Bt2 billion to Bt7 billion and produced a larger client group of around 30,000 with 27 service branches.

There must, however, be more of an effort made by the government in promoting the visibility and presence of the Islamic Bank of Thailand in the eyes of Muslim and non-Muslim clients. Leaving the Islamic Bank in limbo will not be of any benefit to the future of the bank, or to the image of the government. It will reflect the usual half-hearted image that southern people often feel about Bangkok's policies toward them.

The government should begin by encouraging Muslims, who traditionally are not keen on saving, to start putting their funds away so that the bank can accumulate wealth and then lend out the money to entrepreneurial Muslims and interested non-Muslims. The government should also implement an entrepreneurial training scheme for Muslims that would provide them with a higher chance of success for their businesses, which in turn would ensure returns for the bank.

The government should encourage existing conventional banks to open up Islamic windows for Muslim clients through collaboration with the Islamic Bank of Thailand in order to increase accessibility to the bank's services. It could assist the Islamic Bank in developing an effective marketing campaign in order to boost public confidence in the bank. It should also encourage Muslims and non-Muslims alike to patronise Islamic financial services.

To put it briefly, the government must show that it champions this Islamic-financing principle.

The government of Thailand could follow Malaysia's example and recognise the annual Hajj pilgrimage services by way of a saving and investment scheme. Each year, the approximately Bt2-billion enterprise should be better managed to make it more effective and beneficial to the Muslim community and the nation as a whole. It would be an ideal project for the Islamic Bank to take on with government support.

This would help transform the government's much-embattled image in the eyes of the Malay-Muslims, as these local Muslims witness the government embracing and championing their Islamic economic philosophy. Such an approach would guarantee a more positive view of the government from locals. Furthermore, in the long run Muslims' lives would improve economically as well as spiritually since they now would be able to lessen their economic hardship - one of the underlying causes of the conflict - through an Islam-oriented path.

Even better, the government could carry this idea beyond the restive southern provinces. It could develop a centralised system of Islamic finance. It could work with the Securities and Exchange Commission and seek advice from Malaysia on how to create a regulated Islamic financial framework which would draw in Middle Eastern investors - who are already looking to diversify their portfolios by investing in Asia - to Thailand's capital market, thus benefiting the Thai economy as a whole.

Thailand would therefore, for once, be the beneficiary of the rising oil prices that have generated enormous petro-dollars for Arab billionaires. The most significant aspect of this, however, lies in the fact that it would reflect the government's commitment towards understanding and accommodating Islam in the views of southern Muslims. Consequently, it would act as a reconciliation vehicle that could alleviate the tension between the government and the locals.

Fuadi Pitsuwan is a southern Thai-Muslim and a junior in Georgetown University's School of Foreign Service.

Fuadi Pitsuwan

Special to The Nation