Dili – Incoming East Timor president Jose Ramos-Horta's chances of achieving major reform in the troubled tiny state hinge on the outcome of next month's parliamentary elections, according to analysts.

The Nobel laureate won Wednesday's presidential poll in a landslide, raising the hopes of impoverished East Timorese struggling for a better life five years after independence from occupying Indonesia.

Mr Ramos-Horta immediately pledged to reform the fractured military, strengthen the economy and unite the country when he replaces charismatic former guerilla leader Xanana Gusmao as president this month.

But the role of president is largely ceremonial, leaving Mr Ramos-Horta with few powers to implement the substantial changes that he says East Timor desperately needs, said Timor expert Damien Kingsbury, of Deakin University.

"He basically has two roles; one is a symbolic head of state and the other is that he has power of veto over legislation passed in parliament."

He said Mr Ramos-Horta must await the outcome of parliamentary polls in June to determine if he can work effectively with a newly elected government and prime minister to introduce change. "That's still the main game," he said of next month's elections.

Favourite to win the powerful post of prime minister is Mr Gusmao, a hero for many East Timorese because of his exploits against Indonesian forces, and a close ally of Ramos-Horta.

"It (his chances of introducing change) all depends on how well Ramos-Horta can work with the new government," Sophia Cason from Brussels-based think-tank the International Crisis Group, said. "If it's a Fretilin government, then he might face difficulty.

But if Xanana is elected prime minister then there shouldn't be any conflict." Mr Ramos-Horta is banking on Mr Gusmao and his new party winning a majority of seats in June over the ruling Fretilin party, although the Nobel Peace Prize winner has pledged to work with Fretilin leaders and support its members, analysts say.