(Aug 16): The youngest daughter of former Thai leader Thaksin Shinawatra won a parliamentary vote to become the Southeast Asian nation’s next leader, capping a tumultuous period that saw a court oust her predecessor and dissolve the top opposition party. 

Paetongtarn Shinawatra, 37, secured the support of 319 lawmakers in the 500-member House of Representatives, making her Thailand’s youngest prime minister ever. Her elevation keeps intact an unwieldy alliance between the Shinawatra-controlled Pheu Thai Party and a number of royalist conservative and military-backed parties that joined together following an election last year.

Paetongtarn appeared nervous when addressing reporters for the first time after the parliamentary vote. She declined to answer any questions about her government’s policies, saying she would wait until her appointment is endorsed by King Maha Vajiralongkorn.

“I never thought I am the smartest person in the room, but I have clear motivations, and I have a strong team with me,” Paetongtarn said with a shaky voice. “My father Facetimed me, and told me to do my best. He said he was happy to see his daughter in this post before he gets Alzheimer’s.”

Paetongtarn becomes the third member of the influential Shinawatra clan to lead the country. Her father was removed in a 2006 coup, while her aunt, Yingluck Shinawatra, was disqualified by a court shortly before a 2014 takeover by the military.

She was picked for the top job after the country’s Constitutional Court dismissed Srettha Thavisin as the leader in an ethics violation case. His 11-month-old tenure saw his party’s popularity slide as the now-disbanded Move Forward — the winner of the most seats in last year’s election and now the principal opponent of the pro-royalist establishment — steadily climbed. 

While Paetongtarn may continue much of the policies pursued by Srettha’s administration, she may abandon a plan to distribute 10,000 baht (US$285 or RM1,266) each to an estimated 50 million adults to stimulate the economy, according to local media reports on Friday. Most of the members of Srettha’s Cabinet may remain in their roles, while Pichai Chunhavajira who helmed the Finance Ministry may be replaced, Thai-language Krungthep Turakij reported.

Besides keeping the coalition together, Paetongtarn will need to find ways to lift sluggish economic growth, attract foreign investment into high-tech industries, and stem the exodus of foreign funds from the nation’s stocks. 

Thailand’s benchmark stock index is among the world’s worst performers this year, with foreign funds withdrawing more than US$3 billion during the period. The baht has lost about 2.6% this year, and foreign investors have sold a net US$691 million of bonds this week, in a sign that the notes are losing their appeal. 

The alumnus of the University of Surrey has previously favoured lower interest rates and slammed the central bank, saying its autonomy posed an “obstacle” to resolving the country’s economic issues. The Bank of Thailand has held borrowing costs at a decade-high 2.5%, ignoring calls from Srettha and his aides to cut the rates.  

“I decided that it’s about time to do something for the country and the party as well,” Paetongtarn said on Friday. “I hope that I can do my best to make the country go forward. That’s what I try to do. Right now, today, I feel very honoured and happy.”

The support of conservative groups for a Pheu Thai-led government is a sign that a deal between the pro-royalist establishment, which allowed Thaksin to return from a 15-year exile, is still intact. The main opposition party, now known as the People’s Party, is seeking to reform a law that protects the king and other top royals from criticism.

Although her victory ended a brief period of political uncertainty, it’s far from certain that her government will be stable. The shadow of her father, a two-time former prime minister who still wields much influence over Thai politics, will be looming over her leadership. 

“She will be her father’s puppet, and won’t likely be able to do much,” said Punchada Sirivunnabood, an associate professor at the Mahidol University in Thailand. “Questions remain how she will be able to solve economic issues, which even Srettha couldn’t.” 

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