Kosit said yesterday that the topic of discussion would be the overall economic outlook concerning investment, exports and imports, as well as the lower economic growth in China.

"His opinions will be sounded out before our discussion with the prime minister."

Kosit said that during its remaining time in office, the government would ensure the economy was strong before the next administration takes over. But they were also open to public opinion.

In response to criticism that the government moved slowly, Kosit said he had done his best.

Prime Minister Surayud Chulanont said yesterday that as Chalongphob was a former economic adviser to the government, he should be able to carry out his economic policies smoothly.

He noted that with the new minister, the government would change its tactics in a bid to restore investor confidence.

Asked if Chalongphob's appointment could restore investor confidence, Surayud said: "We're confident we can erase all uncertainties. Fundamentally, the Thai economy is strong in terms of economic expansion and inflation, with a slight problem involving spending."

Private investment has been dropping so far this year.

The consumer confidence index in February dropped to its lowest level in five years, on concerns over the strong baht, political instability following MR Pridiyathorn Devakula's departure, and high oil prices.

Banluesak Pussarangsri, director of Bangkok Bank's macro-economy analysis department, said the new finance minister should quickly reveal his policies to restore investor confidence and prevent confusion. He said that so far, the government had sent an unclear signal on whether it honours the free market economy - or wants to block foreign investment.

"Personally, the new minister is believed to follow the free-market economic principle. For example, he showed his disapproval for the capital control measure. It is possible he will opt for a steep rate cut," he said, during a Channel 9 TV programme yesterday.

Banluesak said the rise in the baht was caused by several factors, including the trade surplus and current account surplus.

Federation of Thai Industries chairman Santi Vilassakdanont urged the new finance minister to maintain the capital control measure to help the export sector.

"The measure has been relaxed to some extent and [if it is abolished] the baht could strengthen and affect the export sector," he said. The new minister should quickly try to clear up misunderstandings among local and foreign investors.

Sanphet Deelertpaiboon, advisory chairman to an association of traders in Narathiwat, urged Chalongphob to pay special attention to economic problems in the three southernmost provinces. He suggested the government provide low-rate loans and implement new policies to boost investment.

He said half of the business operators in Narathiwat had moved out of the province because of the violence, despite the area being rich in natural resources.