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Noppadon, who is touring Europe to boost confidence in the Samak Sundaravej government, said that during a meeting with German

business leaders, he was told at least one packaging company had delayed a ¤10-million investment plan in Thailand.

Other companies are about to make the same decision if the political tension continues, he said.

Leading German companies that have been investing in Thailand for a long time, including BASF, Bayer and Daimler, have also expressed concern over the political situation in the Kingdom.

"I have explained to them the protests may create a nuisance but that the government remains stable," he said in a press briefing via a conference call from Berlin.

The People's Alliance for Democracy (PAD) has revived their street demonstrations to oust the Samak government and block the behind-the-scenes political power of ousted prime minister Thaksin Shinawatra.

The police have reported some 2,500 PAD members remain at Makhawan Bridge, which is situated near Government House. More than 1,000 anti-PAD members are holding their own rally at Sanam Luang.

Lt-General Prayuth Chan-ocha, commander of the First Army Region based in Bangkok, warned PAD members not to encroach on government buildings, because that would be deemed unlawful.