Business leaders believe that Thai Rak Thai's sweeping election victory yesterday has all but eliminated any questions over political instability in the country.

Business leaders say the victory has now given the government a sense of political stability unseen in the country since the military dictatorships.

Investor confidence should increase as a result, particularly as Mr Thaksin, one of the country's wealthiest businessmen, commands wide respect among business leaders for his pro-growth policies and no-nonsense management style.

Phaphad Phodhivorakhun, the chairman of the Federation of Thai Industries, said the victory would definitely strengthen the country's political stability in the eyes of investors.

The key tasks for the government are educational reform, human resources development and strengthening the country's competitiveness for the future.

``Pumping money into the grassroots economy is only a short-term measure ... the real question is how Thai businesses will survive in an increasingly competitive market,'' he said.

Ajva Taulananda, the chairman of the Thai Chamber of Commerce, said the election result would ensure that economic policies continued uninterrupted.

``What businessmen are really waiting to see is who will fill the economics team. But the Thai Rak Thai party has always boasted good teamwork, and I think the policies can be implemented regardless of who is minister,'' he said.

Kittiratt na Ranong, the president of the Stock Exchange of Thailand, said that policies such as state enterprise privatisation and new infrastructure investments would gain momentum after the election.

``A government with a strong majority clearly has an advantage, as they can make decisions more quickly to tackle any problems,'' he said.

But Mr Kittiratt said a potential downside was that the government now was insulated against the threat of political censure, thus raising questions about the effectiveness of checks and balances.



Pornsil Patchrintanakul, a deputy secretary-general of the Board of Trade, said the sheer dominance of the new government would increase the difficulties in auditing and monitoring its performance by the public.

``The victory shows that the public has given its support for Thai Rak Thai's policies over its first term.

``This could lead the government to now become even more aggressive in pursuing its policies,'' he said.