Setting the tone for his leadership, Surayud pledged unwavering loyalty to the monarchy, readiness to confront and resolve every problem, national reconciliation and promotion of morality and ethics under the theory of sufficiency economy.

"Above all else, this government will uphold the monarchy as an inviolable institution and strive to resolve critical issues in line with public aspirations and national security," he said.

Speaking in the chamber of the National Legislative Assembly, he said he saw five main challenges facing his government: the restoration of national unity; strengthening anti-graft mechanisms and ethical standards; promotion of basic rights and justice; adoption of the theory of sufficiency economy, and the drafting of the new constitution.

Surayud's policy statement covered political, economic, social, foreign relations and national security issues.

Key points of the political agenda include:

lEncouraging people's involvement at every stage of drafting the new constitution.

lStrengthening the fight against corruption, and enacting new legislation to prevent conflict of interest.

lMapping out a master plan for political development, and setting up a Political Development Council to promote people's knowledge of politics and to ensure politicians comply with moral and ethical standards.

lMapping out a master plan for the utilisation of airwaves and state-run media outlets to serve the public rather than be government mouthpieces.

lPromoting press freedom. A new law on radio and television broadcasting will be enacted to regulate state, private and community media outlets for public service.

lPromoting the role of civic groups.

lEncouraging state officials and organisations to uphold professionalism and honesty.

lPromoting the decentralisation of power.

In regard to the economy, the government has three sets of policies designed to meet the specific requirements of each of the three economic levels - individual, market and national.

At the individual level, dubbed the economic foundation, the four key policies are:

lEncouraging small-scale farmers to embrace the New Economic Theory under the royal initiative. The theory aims to help each farming family achieve sufficiency.

lPromoting products and services from each community and locality.

lPromoting labour welfare and the upgrading of labour skills.

lEnsuring a social safety net for the underprivileged and workers who cannot adapt to market changes.

The policies for the market economy include:

lPromoting investment projects, particularly those designed to enhance local intellectual property and technology transfer.

lPromoting small and medium-sized enterprises by introducing technology and modern management.

lEncouraging private sector-driven exports.

lPromoting the country as a quality tourist destination.

lPromoting energy conservation and developing alternative energy sources.

lImproving the management of mega-projects and setting a clearer prioritisation for implementation.

lMapping out a master plan to develop the intellectual infrastructure for a knowledge-based society.

lEnsuring a balance between the exploitation and conservation of natural resources.

lAllowing people's involvement in international trade negotiations.

lUpdating laws and trade regulations.

For the overall economy, the government will aim for a national plan to boost efficiency, promote saving at every economic level and incur budget deficits to fuel growth.

Regarding social and foreign affairs, the key policies are the overhaul of law enforcement to ensure justice, instilling morals and ethics through the education system, restoration of peace in the South and promotion of relations with Asean and other neighbouring countries.

For national security in peacetime, the government will encourage the armed forces to participate in development projects and assist in tackling emergencies.