ASEAN Warns West Asia Conflict Disrupts Energy And Supply Chains, Hits Growth

KUALA LUMPUR, May 1 (Bernama) -- ASEAN economic ministers said the conflict in West Asia is exerting growing pressure on regional economies and threatening growth amid increasing disruptions to global energy markets, supply chains, food security, and transport and logistics networks.

The ASEAN Economic Community Council (AECC) ministers convened a special meeting via videoconference on Thursday to discuss the far-reaching economic implications of the situation.

In a joint statement, they warned that disruptions to key maritime routes, particularly the Strait of Hormuz, a critical artery for global oil and liquefied natural gas (LNG), with more than 80 per cent destined for Asia, are heightening energy security risks, fuelling price volatility and pushing up freight, insurance and logistics costs.

They added that the impact of these shocks is extending beyond energy markets, generating inflationary pressures, exchange rate volatility, tighter global financial conditions, and heightened uncertainty for businesses and investors.

The ministers said rising energy and transport costs are spilling over into food systems, driving up fertiliser prices and disrupting supply chains.

“This is affecting affordability and timely access to fertilisers, particularly ahead of key planting seasons, risking lower agricultural productivity and disruptions to food supply,” they said.

They also reaffirmed ASEAN’s commitment to avoiding unnecessary trade barriers on essential goods during crises and to ensuring the smooth flow of goods through better coordination, information sharing and digitalised customs procedures, while keeping borders, airports, and seaports open where possible.

The bloc also noted a proposal by the Economic Research Institute for ASEAN and East Asia (ERIA) to study a regional joint oil stockpiling mechanism as part of broader efforts to strengthen energy resilience through diversification, renewable energy development, and enhanced regional cooperation.

The ministers agreed to deepen coordination with international financial institutions to safeguard macroeconomic stability and mitigate global and regional shocks.

“Stronger trade and financial integration and market diversification will further enhance ASEAN’s resilience,” it stated.

The economic ministers also reaffirmed readiness to engage constructively with partners to keep the global trading system open, transparent and non-discriminatory.

They said ASEAN member states may implement targeted, temporary measures to support micro, small, and medium enterprises (MSMEs) and vulnerable sectors, while committing to diversifying trade and investment through ASEAN agreements, including Regional Comprehensive Economic Partnership Agreement (RCEP) and the planned ASEAN Digital Economy Framework Agreement (DEFA).

The ministers will convey the meeting’s outcomes to ASEAN leaders at the 48th ASEAN Summit in Cebu, including recommendations to strengthen preparedness, safeguard supply chains and enhance coordinated responses to external shocks.

They reaffirmed their readiness to support a coherent, forward-looking approach to bolster regional resilience and economic stability.

-- BERNAMA