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New prime minister Abhisit Vejjajiva has arrived at a historic juncture. He will face tough challenges. The global financial system is melting down, leaving most of the major economies with negative growth. Thailand is an open economy, with exports accounting for more than 60 per cent of gross domestic product. Thailand will feel the pinch from the global recession. Abhisit will also have to deal with the social and political divide, which has been wrecking the country for three years. His premiership will not be a smooth ride.

In an interview with CNN, Abhisit admitted that Thailand faced a "tough" time ahead as his government looked to restore confidence in the Kingdom's battered economy, amid warnings that growth could be as low as 2 per cent next year. "You cannot expect, for instance, the rates of growth to hold up to the rates that we've experienced in the last couple of years," Abhisit said in the interview broadcast on Wednesday. "There's going to have to be a slowdown. There will inevitably be problems in terms of employment ... it's not going to be easy to completely stabilise the political situation in a short space of time."

With the adverse economic conditions, it is going to be very tough for Abhisit to strike a middle ground. But it will be timely for the government to spend money quickly early next year to keep the economy going and to help the needy.

Medium- and small-scale enterprises are going to be cash-strapped. They will need credit to keep their businesses going. All the banks now are cautious in extending credit for fear they will never get the money back. In bad times, loans can turn non-performing quickly. The situation will deteriorate until the second quarter of 2009 before things might improve. Between now and then, banks are going to hang tough, while companies struggle to stay alive. If there is no middle ground in credit extension, small- and medium-scale enterprises will go out of business. The consequence will be rising unemployment. The Federation of Thai Industries has already warned that unemployment might reach one million next year. This is one of the biggest challenges facing the Abhisit Cabinet. How can it keep businesses going without throwing good money after bad? Assistance to help the unemployed will have to happen before it creates social problems.

The tourism industry is also facing a tough time in the aftermath of the closure of the Bangkok airports. Hoteliers and tour operators no longer have any bargaining position. Buyers are demanding they get a flat rate throughout 2009, although the peak holiday season between October and December normally garners higher rates. Abhisit will have to listen to the tourism industry and try to help. Marketing promotion should be handled wisely to prevent wasteful spending. The government may do joint promotion with hotels and tour operators to attract visitors. Tourism revenue is the best income distribution in Thailand because it goes to drivers, small shops, restaurants and waiters and waitresses.

The agricultural sector is also experiencing a price slump. Although it accounts for 10 per cent of GDP, it involves 60 per cent of the population. Rubber, maize, rice and tapioca need a sound policy. People in the agricultural sector are entitled to a higher standard of living. Healthcare and education must be extended to rural people, who are the backbone of this country. If they are happy and healthy, Thailand will also be happy and healthy.

Abhisit is right to have said that he will reach out to all Thais in all regions of the country. It is time that the Thais came together in national reconciliation. Some MPs did not conduct themselves well in Parliament on Monday when they voted for the prime minister. They stood up to identify the provinces they came from and declare that they voted on behalf of their provinces and local constituencies. By doing so, they further contributed to the polarisation of Thai politics.

Now that Abhisit is prime minister of Thailand, he represents all the Thai people. We all need to work to support his premiership. All the hard work is ahead of us.