Now that an October 15 election date has been confirmed, the business community seems convinced that local and foreign investors' confidence in the economy will be restored.

Business said the election would be the first step towards settling the political and economic turbulence and should lead to a resumption of investment.

However, business leaders said uncertainties remain and they would be absolutely certain that political conflict had been laid to rest only when a new government can be formed.

Supavud Saicheua, managing director of Phatra Securities Plc, said that the decision to set the election date had apparently reduced political uncertainty and would finally bring foreign investors back to the local stock market.

The decision caused investors to acknowledge that Thailand would get a new government via a democratic process. The good news is that with a new election, the government budget for 2007 will be disbursed in March next year, sooner than expected earlier.

"Uncertainty in politics has blocked everything," Supavud said. "But, despite the new election date, uncertainty has not yet disappeared. Even the April 2 election date had earlier been nullified. So, we don't have full confidence in politics, unless the new government is really set up."

He said it uncertain whether people would accept the current election commissioners and the election that they would manage.

Piyasvasti Amranand, chairman of Kasikorn Asset Management, said that even if there was an election date, it was uncertain whether there would be further resistance which could restart political chaos.

"To business people, it would be better to have someone voted into office by 30 per cent of voters who would not stir strong displeasure among the remaining 70 per cent, than someone who is voted for by 60 per cent but really despised by the remaining 40 per cent of voters," he said.

Santi Vilasssakdanont, president of the Federation of Thai Industries (FTI), said that the announced election date would increase investor confidence and drive the economy out of its doldrums.

"It is a good sign that Thailand's economy will recover. Investors and enterprises will have more confidence to start or expand investment projects in Thailand," he said, adding that local and foreign investors had delayed investments for fear of the political problems.

Despite the announcement, he said, the FTI maintained its economic growth forecast at 4-4.5 per cent.

Prakit Shinamournpong, vice president of the Thai Hotel Association, said that the election date would boost the tourism industry, especially in the approaching high season in October.

"While domestic travellers should travel more, foreign investors should reconsider making new investments," he said, adding that hotel operators welcomed whoever would form the new government.

"We're prepared to discuss tourist strategies with them," he said.

Pornsilp Patcharintanakul, deputy secretary-general of the Board of Trade of Thailand, said the election date would at clear up dim prospects. Still, he said he was not sure if companies would start making decisions on new investments immediately.

 "I think that investors will wait for the formation of the new government. Only then will the economy start to recover," he said.

Aat Pisanwanich, director of the Centre of International Trade Studies of the Thai Chamber of Commerce, said that the election date was welcome but that the public response to the Election Commission's credibility in handling the election would prove an important element.

"That could develop into more confusion after the election," he noted.

The chamber has maintained its economic growth forecast at 3.8-4.1 per cent and Aat said that the growth rate next year could be even lower due mainly to delays in budget disbursements and mega-project investments.

Chaipranin Visudhipol, president of the Advertising Association of Thailand and managing director of TBWA Thailand, said the election date announcement would provide a clearer political picture.

"Though there remain many question marks, the exact schedule is the first step towards the appropriate means for solving political problems," he said. "I think politicians also share the same view as business owners that there should be a correct and fast way to solve the political problems."

The announcement gives a clear picture to business people, said Vanchai Janvuttarunggul, group general manager of shopping complex operator The Mall Group Co Ltd.

"But there are still uncertainties. We will be more certain when we know who will win the election so that we know the exact direction of politics," he said.

Ampon Kittiampon, secretary-general of the National Economic and Social Development Board, said that the election date should restore confidence among foreign investors who have reportedly withheld new investment.

"This is a sign that everything will improve," he said, adding that any change to the economic forecast could be made later on because the NESDB reconsidered its forecast every three months.

Caretaker Finance Minister Thanong Bidaya said that foreign investor confidence would be swiftly restored.

"This is a good sign for politics that finally we have an election date. His Majesty the King has graciously signed the royal decree on the election date that will result in boosting confidence. The political uncertainty will be able to end," Thanong said.

Thanong said he would take this opportunity to boost foreign investor confidence during an Asean road show stop in Hong Kong as well as another at the annual meeting of the World Bank and the International Monetary Fund in Singapore in September.