The heated threat by Thaksin Shinawatra, Thai prime minister, to withhold development aid from "disloyal" southern Muslims has been criticised by Islamic leaders and politicians, who warn that excluding communities from state aid will backfire in the battle for hearts and minds.

"If he does that, he is walking into a trap," said Surin Pitsuwan, a Democrat member of parliament and one of Thailand's most prominent Muslim politicians. "If things get worse, are you going to withdraw and withhold the budget from everywhere?"