Dec. 29 (Bloomberg) -- Thai Prime Minister Abhisit Vejjajiva was forced to delay his inaugural policy address after as many as 9,000 opposition supporters besieged parliament and called for immediate elections.

The speech will be postponed until tomorrow, Chai Chidchob, parliament’s speaker, was cited as saying by army-controlled Channel 7 after red-shirted supporters of former premier Thaksin Shinawatra ringed the building this morning. “If tomorrow doesn’t work, we may further delay it,” Chai said earlier.

The protests underscore Abhisit’s difficulty in uniting a country that has lost two prime ministers in four months after violent clashes that culminated in the seizure of Bangkok’s two airports. Thailand’s economy may contract in the first quarter of next year as the political turmoil scares away tourists, compounding the effect of the global recession.

“I’m still intent on holding a meeting tomorrow,” Abhisit said in remarks broadcast on Channel 3, adding that there was no plan to change the venue from the parliament building. “There is no intention to use any force,” he said.

Thailand is split between two camps -- one backing Thaksin and his allies, which relies on the nation’s rural majority for support, and yellow-clad urban and royalist elites. At stake is control of the government and rival visions of the country’s democracy, with Thaksin endorsing a more populist system.

‘Political Risk’

“This doesn’t look good for Thailand,” said Korawut Leenabanchong, a fund manager who helps oversee 70 billion baht ($2 billion) at Bangkok-based UOB Asset Management (Thai) Ltd. “The country has been dogged by political risk for two years. It will continue to be the main factor going forward.”

Abhisit, leader of the Democrat Party, became prime minister after the former ruling pro-Thaksin People Power Party, or PPP, was disbanded earlier this month by the courts. His maiden address, initially planned for 9:30 a.m., may include details of his government’s efforts to revive economic growth and promote political reconciliation.

“There is no guarantee of our safety if we have to get there by foot,” said Sathit Wongnongtoei, a minister from Abhisit’s office. The new prime minister is required under the constitution to present the inaugural address to both the Senate and the House of Representatives after taking office.

Thailand’s benchmark SET Index ended little changed at 446.7 after paring earlier losses of as much as 1.4 percent. The baht was also little changed after declining to 35.09 against the dollar, the lowest level in almost two weeks.

‘Protesting Peacefully’

“We are protesting peacefully,” Nattawut Saikuar, a rally organizer and PPP member, said by phone from the protest site in the center of Bangkok. The red-shirted protesters numbered between 8,000 and 9,000, according to Amnuay Nimanoo, Bangkok’s deputy police commander.

Two previous pro-Thaksin administrations this year were hounded by yellow-shirted protesters from the so-called People’s Alliance for Democracy, which occupied the prime minister’s office and then Bangkok’s main airports. Abhisit now faces rival protesters using similar tactics to force him from power.

The conflict has hammered the nation’s tourism industry and hurt economic growth. Thailand’s economy may shrink in the first three months of 2009 after declining between 2 percent and 3 percent this quarter, the Finance Ministry has said.

Mass Rallies

Thaksin, ousted in 2006 by a military coup, lives overseas after being convicted for abuse of power. He has addressed his supporters this year in mass rallies using videotaped or broadcast messages.

Prime Minister Abhisit, 44, last week said the government will spend 300 billion baht to help counter the slump in Southeast Asia’s second-largest economy, including the damage caused when the anti-Thaksin protesters shut down the nation’s main airports for more than a week.

“We want to complete the policy presentation before the yearend,” Deputy Prime Minister Suthep Thaugsuban said before the maiden speech was delayed. “Ministers and coalition parties’ lawmakers won’t attend the parliamentary session until they are assured of their safety.”

Thousands of police are stationed inside parliament to protect lawmakers, said Pongsan Iam-on, Bangkok’s deputy metropolitan police chief. There was no plan to use force to disperse the crowds, Pongsan said.

To contact the reporters on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net; Rattaphol Onsanit in Bangkok at ronsanit@bloomberg.net.

Last Updated: December 29, 2008 05:50 EST