The New Nation - Internet Edition

AFP, Bangkok

Thai industry leaders Tuesday demanded the government revoke emergency rule across Bangkok, saying it was damaging business.

Foreign investors were already losing confidence in Thailand as protestors continue to besiege the main government complex, calling on Prime Minister Samak Sundaravej to resign, said the chairman of the Federation of Thai Industries.

'The state of emergency order has caused both Thai and foreign investors to lose confidence in Thailand,' Santi Vilassakdanont said, speaking before a court stripped Samak of his post over a constitutional matter.

'It has had most effect on those foreign investors who are not familiar with the country,' Santi said.

The state of emergency was called by Samak a week ago after overnight street clashes between pro- and anti-government groups left one dead and dozens injured.

The People's Alliance for Democracy has squatted in the grounds of Government House since August 26, and said Tuesday they would stay put for now, despite the entire cabinet being forced to step down in the wake of Samak's court ruling.

Santi said the emergency rule had caused problems in at least 21 industrial sectors including in tourism, exports, logistics, clothing and printing.

Several foreign investors had cancelled work trips to Thailand while others had formally postponed their investment plans, he said.

The federation urged all parties to negotiate a peaceful resolution to the crisis to prevent further economic damage.