The business sector is relieved that the Constitution Tribunal's verdicts on Wednesday have brought a clearer political picture and no immediate violence.

But it is closely monitoring the political situation in case the dissolution of the Thai Rak Thai Party unleashes another political fight, which could disrupt the charter-drafting process and general election.

Business people were pleased there was no outright violence after the rulings, believing it will increase confidence among consumers and investors.

Federation of Thai Industries chairman Santi Vilassakdanont was sympathetic towards Thai Rak Thai and urged the Democrat Party, which is considered to have an advantage in the upcoming election, to show what it has to offer the country.

He believes the Democrats' weak points are slow decision-making and having few prominent members, but he hopes a new generation of members can strengthen the party before its rivals regain strength.

He said the rulings had set a precedent in Thai politics and all parties needed to be careful not to break the law. While the main players were banned, there could be nominees and this would be clearer when the election draws near.

"Without protests, the economy can proceed as usual. Foreign investors are now more concerned with whether the constitution will be passed and if there will be an election," Santi said.

Board of Trade chairman Pramon Suthivong said the economy should pick up after the general election as people gain more confidence.

Thana Tienachariya, chief commercial officer of Total Access Communication, said the lack of post-verdict violence was better than anyone had expected.

"Lots of people had expected

there would be violence after the

ruling. But now they feel relieved.

It's good news for the economic situation in the short term," he said.

He added that the government should take this opportunity to announce positive news or policies to boost the confidence of investors.

But as Thai Rak Thai supporters yesterday attempted to stage a protest, Amata Group chief executive Vikrom Kromadit foresaw more political clashes.

"There could be more fighting, probably against the constitution. If the draft constitution is not accepted, there would be no election by the end of the year and our economy would return to chaos," he said.

All eyes were fixed on Thai Rak Thai supporters' movements yesterday.

Securities analysts closely monitored their movements, fearing that any action could lead to a fall in the Stock Exchange of Thailand index today. On Wednesday, the SET Index gained 1.32 per cent to pass the psychological 730-point level to end at 737.40, as foreign and local investors flocked to the market on expectations that no political party would be dissolved.

Marco Sucharitkul, president of JP Morgan Securities (Thailand), said the tribunal's verdict on Thai Rak Thai had been more severe than that expected by the market.

The market's response today will probably depend on how planned protests panned out, as diehard supporters were looking to protest a ruling which banned the party and barred 110 executives from politics for five years.

Marco feared the market could fall today. "I may need to advise clients to reduce their investment in the Thai market after advising them to increase investment two months ago. This verdict could lead to chronic political problems and the charter-drafting process could stumble," he said.

Chaiwat Sritajit of the Public Relations Society of Thailand said that though the picture was clearer to some extent, the public needed to be told that without the constitution there would be no election. Only after the election can the economy resume its normal growth.

Aat Pisanwanich, director of the Centre for International Trade Studies of the University of the Thai Chamber of Commerce, said political tension had relaxed after the ruling, which would prompt an improvement in the economic situation in the second half of the year.

But the key issue is whether the public will vote for the constitution draft and if there will be a general election, he added.

Suchart Chantaranakaracha, president of the National Thai Shippers Association, urged all disbanded parties to keep their promises not to protest against the ruling. He believed consumer and investor confidence could be restored by the rulings.

"What we want most now is an election and we are cautious about whether there will be one soon," said Poj Aramwattananont, president of the Thai Frozen Foods Association.

Teerachon Manomaiphibul, assistant managing director of Property Perfect, hoped that investment would return to Thailand in the second half if the election schedule was kept.

"Then the property market should recover next year after we know who will form the government and what are their economic policies," he said.

Srithai Superware president Sanan Angubolkul said that although the political situation was clearer, the economy would witness slower growth this year as investors are waiting to see who wins the election.

"Politics is more stable but we need to know the economic policies of the new government," he said.

Business Desk

The Nation