BANGKOK - THAILAND'S new Prime Minister pledged yesterday to fix the country's 'failed political system' and work for all Thais, who have been divided by six months of political unrest.

Democrat Party leader Abhisit Vejjajiva, 44, said in his inaugural address to the nation: 'My first job is to end a failed political system. I know I can't make everyone love me or support me. But I promise I will listen to everyone and work for everyone.'

The British-born, Oxford-educated economist was speaking after being formally endorsed as Premier by King Bhumibol Adulyadej, making him Thailand's third prime minister in four months.

Mr Abhisit was voted by Parliament to be the country's prime minister on Monday with the help of defectors from the former ruling People Power Party (PPP), which was loyal to former prime minister Thaksin Shinawatra.

The new leader faces the difficult task of unifying a country torn apart by months of violent anti- government protests, culminating in a siege of Bangkok's two airports - demonstrations that

battered the key tourism industry amid the global economic crisis. Thailand's economy may contract this quarter, faster than previously expected, official figures showed yesterday.

Speaking in Thai and English on national television, Mr Abhisit reached out to foreign tourists and investors who had been scared off by Thailand's three-year political crisis.

He said the Thai people regretted the recent week-long blockade of Bangkok's main airports by the anti-PPP People's Alliance for Democracy (PAD), which counts a Democrat lawmaker among its key leaders. Officials have said the travel chaos stranded about 350,000 tourists and put a million jobs at risk. 'They will never happen again and we welcome all of you as tourists, investors and partners,' he added.

He is expected to announce his Cabinet line-up today, as well as an economic stimulus programme by next month. A hotly tipped candidate for finance minister is Mr Korn Chatikavanij, a former manager at investment bank JPMorgan Chase and the Democrats' deputy leader.

But analysts doubt whether the Democrat-led coalition, whose small parliamentary majority may become even smaller after by-elections next month, will make much headway in solving the fundamental rifts between the Bangkok elite and the countryside voters who remain loyal to Thaksin.

Pro-Thaksin protesters had staged a violent protest outside Parliament on Monday during the

premiership vote. The so-called 'red shirts' also plan to march to Parliament next week when Mr Abhisit gives his policy address.

ASSOCIATED PRESS, REUTERS, BLOOMBERG

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Abhisit has no time to dither