The government's decision to use the Internal Security Act during anti-government rallies planned for this weekend may hurt investor sentiment in the short term, but it was an appropriate step for the authorities to take, business leaders say.

The government yesterday announced it would invoke the act in Bangkok from March 11-23, opening the door for the use of troops to help maintain public order.

Hundreds of thousands of red shirt protesters are planning to march to Bangkok over the next several days in a bid to destabilise the government and proclaim their support for former premier Thaksin Shinawatra.

Thailand's international image has taken a beating in recent years due to social and political infighting.

Upheavals have ranged from the military coup in September 2006 to the closure of Suvarnabhumi airport in late 2008 and mass riots in Bangkok last April during the Songkran holidays.

Santi Vilassakdanont, chairman of the Federation of Thai Industries, said political protests had become an all too familiar event for locals. "We feel quite normal [about the situation]. Foreigners who have worked here for a while also know that there is nothing to be scared about," he said.

Pornsil Patchrintanakul, deputy secretary-general of the Thai Chamber of Commerce, agreed that proactive measures by the government were better than a more passive approach. Mr Pornsil said any violence would have a profound impact on the economy and that businesses should do more to express their views and call for calm.

Apisak Tantivorawong, chairman of the Thai Bankers Association, expressed hope that this weekend's protests would pass peacefully. "Violence is unacceptable," said the association chairman.