In his first public comments on politics since 2003, Banthoon told a business-management seminar at the Prince of Songkhla University on Friday that both major parties (Democrat and Thai Rak Thai) had offered populist policies.

"Politicians always promise many things to gain votes. Both 'square face' and 'handsome face' have proposed only populist policies - giving discounts and free things," said Banthoon, adding: "I don't believe that there is a wizard who can make the numerous problems disappear in a wink."

He said policies should be based on economic realities to ensure long-term, sustainable development.

Banthoon noted that none of the banks had lowered their lending targets amid the current economic slowdown, even though it was harder to achieve these targets as a result of higher costs from rising oil prices and interest rates.

He said Kasikornbank had experienced a larger number of non-performing loans but had to keep on lending in order to generate income and to fulfil its role in the economic system.

Banthoon advised businesses not to hold too much bad debt with economic growth slowing and to follow the lessons of the 1997 financial crisis.

Businesses should focus on the sufficiency economy and knowledge development in all aspects. Most of all, they should not over-invest, he said.

"If the government concentrates on development of the country's infrastructure in the long term, this will give businesses a strong foundation that will enable them to adapt to whatever adverse situation," Banthoon said.

Somruedi Banchongduang

The Nation