Japan’s parliament re-elected Shigeru Ishiba as prime minister on Monday, a decision that comes on the heels of a historic election setback for his ruling coalition. The Liberal Democratic Party (LDP), led by Ishiba, along with its partner Komeito, saw a sharp decline in support, losing their majority in the 465-seat lower house on October 27 amid public discontent over financial misconduct allegations and what critics described as an inadequate policy response to pressing issues.

During Monday’s special parliamentary session, Ishiba narrowly secured his position with 221 votes, edging out Yoshihiko Noda of the Constitutional Democratic Party, who received 160 votes. This runoff marked the first time in thirty years that a post-election vote attracted this level of attention, underscoring the extent of the political shift following the coalition’s losses.

Although Ishiba plans to retain most of his cabinet, three members will need to be replaced after either losing their seats or being affected by the election outcome. Despite pressure to step down, Ishiba has vowed to stay on, expressing willingness to consider additional alliances to maintain stability and advance his administration’s policies.

Yoshihiko Noda, leader of the Constitutional Democratic Party, has called for a coalition of opposition forces to mount a stronger challenge, although this effort has yet to materialise. Ishiba’s agenda for the months ahead will likely involve navigating opposition resistance, as he will need bipartisan support to pass critical budget and policy legislation.

One potential partner for the LDP is the rising Democratic Party for the People, whose popularity surged under leader Yuichiro Tamaki, increasing its parliamentary seats from 7 to 28. Tamaki, a Harvard-educated former finance ministry official, has resonated with younger and lower-income voters by proposing policies aimed at raising tax-free income thresholds and boosting wages. However, Tamaki has been clear that he would only support Ishiba’s policies selectively and not through a formal coalition, seeing this approach as a chance to build his party’s profile ahead of the next election. Recently, Tamaki’s political standing took a hit when he admitted to an extramarital affair after a magazine exposé, adding a layer of personal turmoil to the political landscape.

Meanwhile, Ishiba is also preparing for international commitments, including attendance at the ASEAN and G20 summits later this month and potentially a meeting with U.S. President-elect Donald Trump on his way back to Japan.