BANGKOK (June 19): The government of Thai Prime Minister Paetongtarn Shinawatra was hanging by a thread on Thursday following the withdrawal of a major coalition partner, building pressure on her to resign after just 10 months in power.

Political neophyte Paetongtarn, the 38-year-old daughter of influential former premier Thaksin Shinawatra, is facing dwindling popularity, a stuttering economy and a territorial row with Cambodia that has sparked fears of military clashes.

The second-biggest partner in the alliance, the Bhumjaithai Party, withdrew from the coalition late on Wednesday, citing damage caused to Thailand's integrity, sovereignty and its army after an embarrassing leak hours earlier of a phone call between the premier and Cambodia's influential former leader Hun Sen.

The United Thai Nation (UTN), Chart Thai Pattana and Democrat parties announced separate meetings on Thursday to decide their next steps. A decision to withdraw by either the Democrats or UTN would leave Paetongtarn with a minority government and in an untenable position.

The premier has not commented on Bhumjaithai's exit. Paetongtarn was seen entering the government's headquarters on Thursday, with police surrounding the complex in preparation for possible protests against her.

Thai stocks fell as much as 2.4% in morning trading to the lowest level since April 9.

In the leaked June 15 call, Paetongtarn is heard pressing former Cambodian leader Hun Sen for a peaceful resolution to the territorial dispute, and urging him not to listen to "the other side" in Thailand, including an outspoken Thai army general who she said "just wants to look cool".

She later told reporters that was a negotiation tactic and there were no issues with the military.

Paetongtarn met top security officials on Thursday to discuss the crisis with Cambodia. Flanked by the defence minister, army chief and armed forces commander, she apologised over the leak and called for unity.

"We don't have time for infighting. We have to protect our sovereignty. The government is ready to support the military in all ways," she told reporters.

'The last straw'

If Paetongtarn were to resign, parliament must convene to choose a new prime minister to form the next government, from a pool of only five remaining eligible candidates nominated before the 2023 election.

Another option would be to dissolve parliament and call an election, a move that could favour the opposition People's Party, the largest force in parliament and the country's most popular party according to opinion polls.

The People's Party, the reincarnation of the Move Forward Party that won most votes in the 2023 election but was disbanded last year by a court, said Thailand was paralysed by problems that only a new election could solve.

"The situation yesterday [Wednesday] on the leaked phone call is the last straw," People's Party leader Natthaphong Ruengpanyawut told a press conference.

"I want the prime minister to dissolve parliament. I think the people want a government that can solve problems for the people, a legitimate government that comes from a democratic process."

Paetongtarn's administration has also been dogged by criticism from opponents about the influence of her divisive tycoon father Thaksin, who holds no official position but often comments on policy and has maintained a high profile since his return from self-exile in 2023.

The turmoil and the army's assertiveness over the border dispute with Cambodia have again put the spotlight on Thailand's politically powerful military and its animosity with the Shinawatra family, whose governments it overthrew in 2006 and 2014 coups.

The army on Thursday issued a statement affirming its "commitment to democratic principles" while emphasising Thai unity.

"The chief of army has called upon the Thai people to maintain confidence in the Royal Thai Army's steadfast commitment to constitutional monarchy and ... protecting national sovereignty through established legal frameworks and institutional mechanisms," it said.