THAI Premier Abhisit Vejjajiva on a day-long official visit here - his first as Prime Minister - pledged to step up cooperation with Singapore and assured leading bankers and businessmen that Thailand would continue to welcome foreign investment.

Speaking to The Straits Times after lunch at the Istana with Prime Minister Lee Hsien Loong and senior Cabinet members, Mr Abhisit said: 'I had a very good meeting with PM Lee; despite the (economic) downturn we are determined to step up cooperation on all fronts.'

Singapore's hosting of a Singapore-Thailand Enhanced Economic Relationship meeting later this year would be an opportunity to 'review the impact of the crisis on trade and investment flows and explore new opportunities as we move forward', he said.

'We also had good discussions on the need for Asean to continue to make progress under the new Charter, with the goal of achieving a community and making sure we retain that momentum,' he added.

At the lunch which followed a ceremonial welcome at the Istana, Mr Abhisit - who also paid courtesy calls on President S R Nathan and Minister Mentor Lee Kuan Yew - said: 'I have never failed to be impressed by Singapore's development and adherence to the values of hard work, discipline and perseverance...and your responses to the challenges of our times.'

He cited the close and dynamic ties between Singapore and Thailand and said he would reaffirm to prominent business leaders later in the evening that 'Thailand remains the land of hospitality and investment opportunities'.

Prime Minister Lee, for his part, noted that the bilateral partnership continued to broaden and deepen.

Bilateral trade had grown steadily to about $35 billion last year, and trade and investments would continue to be expanded, he said.

'Defence relations are longstanding and substantial,' he said, citing Thailand's assistance in patrolling the Malacca Strait.

Mr Lee also pledged Singapore's cooperation in strengthening Asean, saying: 'We must focus our energies in the coming months to ensure a productive meeting at the Asean Summit (in Thailand) in October.

'This will help advance Asean projects and reaffirm Asean's international standing.'

The two leaders also exchanged views on regional and international developments in a meeting before the lunch, according to a statement from Singapore's Ministry of Foreign Affairs.

It said both agreed to forge a closer partnership to tackle emerging challenges confronting the region.

Earlier, at a meeting with senior bankers and the media at Thomson Reuters, Mr Abhisit acknowledged that Thailand was at a crossroads, but sought to dispel worries over political stability.

'The anger that has been built up on the streets...is an accumulation of the failed politics of the past few years,' he said.

He acknowledged that some provisions in the current Constitution were not 'as democratic as they should be'.

But, citing political reform begun by his government, he said: 'The issue is about making sure we have politics that works for all, and that politics has to be democratic, accountable and transparent.'

He said political issues got 'out of hand' in April when anti-government protesters sabotaged the Asean Summit in Pattaya and rioted in Bangkok, but he had moved swiftly to restore order.

He also said that despite the 'turbulence' recently, his government had not been distracted from its 'top-most priority which is to make sure (economic) recovery will be under way as soon as possible'.

He was confident that his government's second stimulus package would get growth back into positive territory by the end of the year, allowing the Thai economy to recover by next year.

-end of ST article