Latest unrest means more govt borrowing to boost economy: Korbsak

He said it was now necessary for the government to spend more and to revise economic policies so that they are more in line with prevailing conditions. Top of the agenda is how to offset falling government revenue.

"What I can say now is we need to borrow more, to compensate for the disappearing revenue. There will be no change to the amount of the second package, worth Bt1.56 trillion, but we will need to borrow more as tax revenue is tending to nosedive. The Cabinet will discuss borrowing options, which should be finalised next week," he said.

The stimulus package is one issue to be discussed at a special Cabinet meeting tomorrow, aside from the political turbulence.

Korbsak added that the government would still raise some taxes, particularly on alcohol products.

With business operators urging the government to adopt proactive public-relations strategies to restore the nation's tarnished image, Korbsak said: "We need to do everything we can, but we need to be wise in expediting financial resources. Boosting the [tourism] market through overseas advertising, which could entail over Bt100 million, is useless when demand is zero. We should wait until normalcy is restored, probably three months. And in the fourth month, we will see what we can do," he said.

It is estimated the tourism sector alone will lose at least Bt100 billion at a result of the civil unrest, against Bt120 billion following the Suvarnabhumi Airport shutdown late last year.

Korbsak acknowledged that the sector would be the hardest hit by the chaos on the streets.

He said the government would work with tourism operators. To prevent lay-offs in the short term, some workers will be enrolled into the government's Tonkla training programme.

Meanwhile, the government must restore political stability, he added.

While urging proactive PR strategies, Board of Trade deputy secretary-general Pornsilp Patcharintanakul said: "Importantly, there must be a government assurance that measures are in place to prevent this kind of violence from recurring."

He suggested there should be government roadshows, as political instability has weighed heavily on confidence, leading to Standard & Poor's downgrading the country's local-currency rating from "A" to "A-".

Stock Exchange of Thailand president Patareeya Benjapholchai said yesterday that on May 18, the exchange would meet foreign investors in London and New York during SET roadshows.

It will take that opportunity to explain the political situation to investors, in the belief that clearer information will result in a better understanding.

Somphop Manarangsan, an economics lecturer at Chulalongkorn University, said the government must adopt proactive strategies in restoring the country's image. Short- and long-term plans are necessary, given the cancellation of the Asean Summit and the credit-rating downgrade.

"It is an urgent requirement for Thailand to explain matters to the world, which is all ears about the government's crisis management. Public relations is necessary to restore tourist and investor confidence," said Somphop.

Thai Chamber of Commerce president Dusit Nontanakorn expressed hope that foreigners would understand the situation, as the crackdown was conducted in line with international standards. He said the private sector was ready to lend assistance in getting the country through the crisis.

"The private sector needs to help itself as well as all Thais. We must restore confidence, probably by spending, to bring tourists back to Thailand," he said.

Charoen Pokphand Group vice chairman Ajva Taulananda urged all Thais to forgive and join hands in restoring the nation. Also honorary chairman of the Thai Chamber of Commerce, he said any wrongdoers should nonetheless face legal action.