Deputy Prime Minister and Industry Minister Kosit Panpiemras said he had decided not to request a 2007 budget for the project because the remaining funding is enough to complete it.

The previous government initiated the Bangkok Fashion City project in July 2003 with a budget of Bt1.83 billion and the goals of making Thailand a regional fashion hub by 2005 and a global fashion hub by 2012.

The project comprises nine sub-projects, seven of which have been completed and two of which are still running.

Kosit said he was considering having the private sector take over the project.

He said the government still had to negotiate with relevant partners, but there is a chance that Bangkok Fashion City will be handed over to a private sector organisation.

He added that as industry minister he should focus more on production projects such as the Thai Food to the World initiative.

A source at the Thai Weaving Industry Association (TWIA) said a meeting had been held at the Federation of Thai Industries yesterday evening to discuss private sector involvement in Bangkok Fashion City.

She said the presidents of many associations, including the TWIA, were in attendance.

The president of the Thai Leathergoods Association, David Chiu, told The Nation it would be very bad news if the project were to be halted.

"Other countries consistently supported local manufacturers for years in order to become fashion cities," he said.