Stunned military accepts result of Thailand's election

THAILAND'S powerful military has accepted a stunning election victory by the party of fugitive former prime minister Thaksin Shinawatra, adding to a new sense of stability in a country plagued by unrest since his fall in a 2006 coup.

A day after the decisive win by the Puea Thai party headed by Mr Thaksin's youngest sister, Yingluck Shinawatra, the military yesterday agreed not to intervene or stop her from forming a government, according to the outgoing defence minister.

"I can assure that the military has no desire to stray out of its assigned role," said General Prawit Wongsuwan, a former army chief close to military leaders involved in the 2006 coup that removed Mr Thaksin.

"The army accepts the election results," he said. Puea Thai's absolute majority of 264 seats in the 500-seat parliament makes it hard for Ms Yingluck's rivals to stop the 44-year-old businesswoman becoming prime minister. Ms Yingluck, who will be Thailand's first woman prime minister, said she would form a five-party coalition controlling 299 seats, or about 60 per cent of parliament, giving her a strong hand to fulfil her election promises. Under the Thai constitution, the first sitting of the lower House of Representatives to choose the next prime minister must be convened 30 days after the election.

Ms Yingluck plans to roll out Thaksin-style populist programmes that could fuel spending and inflation in south-east Asia's second-largest economy - from subway extensions to big wage increases and various giveaways aimed at boosting spending power.

The vote is an unexpectedly strong rebuke to the traditional establishment of generals, old-money families and royal advisers who backed prime minister Abhisit Vejjajiva. It suggests broad support for policies championed by Mr Thaksin, a divisive figure elected prime minister twice, in 2001 and 2005.

Supporters say he revolutionised Thai politics with pro-business reforms and populist policies aimed at eradicating poverty. Critics accuse him of authoritarianism, crony capitalism and of undermining Thailand's revered monarchy.

"Puea Thai's big victory eases tensions for now but Thailand is still vulnerable," said Kan Yuanyong, director of the Siam Intelligence Unit, a political risks consultancy. "They will wait for Puea Thai and Thaksin to slip up, then we'll see them strike back."

Mr Kan predicted members of the anti-Thaksin People's Alliance for Democracy would once again flood the streets if Ms Yingluck seeks an amnesty clearing her brother of corruption charges and bringing him back to Thailand from self-imposed exile in Dubai.

The group, made up of businessmen, academics and royalists, emerged in 2005 to help topple Mr Thaksin and two pro-Thaksin governments.

Thaksin told reporters he will not try to reclaim $1.4 billion of assets seized when a Thai court convicted him of tailoring government policies to benefit his family business interests.

"I want to retire," he added. He has said he will "wait for the right moment" to come home. "Going back is not necessarily going to be going back into politics. I may turn pro in golf," he said with a laugh.