Thai National Shippers' Council chairman Suchat Chantranakrat said he was surprised, but welcomed Somkid's appointment.

The former deputy prime minister and finance minister has been appointed chairman of a new economics coordination team to boost foreign investors' sagging confidence in Thailand.

"Somkid was economics chief in the previous government, which promoted 'Thaksinomics'. Now that he appears to back the sufficiency economy, I believe he is the right person to explain that this is just one way forward in the era of global economy.

"He should be able to highlight the advantages and possible disadvantages of 'Thaksinomics' and the sufficiency economy. He can differentiate the two systems and show how the sufficiency economy is better and safer than 'Thaksinomics' turned out to be," Suchat said.

Anake Srishevachart, president of the Thai Travel Agents Association (TTAA), said Somkid was an economist and helped the country's economy under former prime minister Thaksin.

Somkid was also one of the key figures in international trade negotiations.

"The tourism sector accepts Somkid because his work is transparent and he doesn't have any close political ties, "Anake said.

He added that Somkid needed to take time to adjust his way of working from focusing on growth to the sufficiency economy.

A board member of the Association of Thai Travel Agents (ATTA) said Somkid would work well with Prime Minister Surayud Chulanont.

The chairman and CEO of Spa Advertising, Kitti Chambundabongse, said that Thailand needed both good and smart people to help the country and Somkid was a good combination of honesty and intelligence in the eyes of both local and foreign communities.

"I don't mind who Somkid worked for in the past, but the fact he will be guiding the government's economic strategy should help create a good balance between the sufficiency economy while remaining competitive," said Kitti.

He said that Somkid had strong credibility with the overseas financial community and so was well placed to explain the philosophy behind the sufficiency economy, which has never existed in a capitalist society, to foreign investors.

Bangkok Fashion City Project director Pramode Vidtayasuk also welcomed Somkid's return, saying that it could have a positive impact on his project.

"Now we need talented people to brainstorm their ideas so that operations run smoothly," the fashion chief said.

To Deunden Nikomborirak, an economist at the Thailand Development Research Institute, Somkid may help the government, as his image is of a proponent of free markets.

However, if the government does not change its position on the draft of the Foreign Business Act (FBA) his appointment will bring little benefit.

Deunden suggested that the government liberalise some service-sector businesses in Annex 3 of the draft FBA. She said the government should eliminate rules and regulations that are not business or investment friendly.

However, another economist, who asked not to be named, said he did not think Somkid would succeed in his task. He said his record was not outstanding, as while working with Thaksin he strongly promoted populist policies.

Somkid's appointment may also affect public confidence in the government, in particular in Surayud. Those who are anti-Thaksin are not happy with Surayud's latest move, fearing that the government will not take effective action to root out corruption and move against former politicians in the Thaksin government, he said.

Medhi Krongkaew, professor of economics at the National Institute of Development Administration, said Somkid's appointment was more symbolic, a message that the government was not against globalisation. The sufficiency economy does not work against the free market, said Medhi. However, he was concerned that Surayud had taken a risk as he bids to counter the political undercurrent created by Thaksin.

"If Surayud's move does not work, he probably will lose all his gambles," he added.

 Somkiat Osotsapa, an economics lecturer at Chulalongkorn University, is more optimistic. He said the appointment would promote reconciliation in society. "If we continue to divide, us against them, the country could degenerate into violence," he said.

He did not foresee any problems arising from a previous conflict between Deputy Prime Minister and Finance Minister Pridiyathorn Devakula and Somkid.

"We should transcend conflict between individuals and look at the big picture on how to stabilise the country," he added.