ASEAN ECONOMIC MINISTERS: MIDDLE EAST TENSIONS POSE RISKS TO REGION'S ECONOMIC STABILITY, ENERGY SECURITY

KUALA LUMPUR, March 13 (Bernama) -- Continued tensions in the Middle East will have impact on economic security and stability, the livelihoods of millions of people in the region, and hinder economic progress in ASEAN, according to a joint statement by the ASEAN Economic Ministers.

The ministers, meeting at the 32nd ASEAN Economic Ministers’ (AEMs) Retreat in Taguig, Philippines, exchanged views on the evolving global and regional situation, including the tension in the Middle East and its potential implications for the ASEAN region and global and regional economy.

“We expressed deep concern over the continued tensions in the Middle East. The escalating conflict has generated broader economic repercussions beyond the region, particularly through heightened volatility in global energy markets and disruption of key maritime and supply chain routes, bringing about uncertainty and significant challenges to the economy, businesses and global trading dynamics.

“Such disruptions are leading to higher freight, insurance, and logistics costs and contribute to inflationary pressures on energy, food, and other essential goods,” the ministers said in the statement released today.

The AEMs also said that a prolonged period of geopolitical instability could pose sustained challenges to the global economic outlook, which has already been battered by multiple headwinds in recent years. 

Thus the AEMs joined the ASEAN Foreign Ministers in calling for the de-escalation of the Middle East conflict through diplomatic and peaceful means, including the cessation of hostilities, the exercise of maximum restraint, and the pursuit of dialogue by all parties concerned.

“We reaffirmed that long-term regional economic predictability and investor confidence, which are inextricably linked to the consistent application of international law and the swift resolution of humanitarian crises, remain the foundation for a stable global trading architecture,” they said.

On the energy supply issue, the AEMs underscored the importance of strengthening regional energy security and resilience, particularly given ASEAN’s exposure to global oil and liquefied natural gas supply routes and developments in international energy markets.

“We emphasised the need to manage energy consumption, diversify energy sources and supply routes, particularly through biofuels and renewable energy, enhance regional cooperation on energy preparedness, and cooperation on reserves, including with ASEAN dialogue partners, and accelerate renewable energy transition and alternative energy development,” the ministers added.

The AEMs called for continued collaboration to advance ASEAN’s existing energy cooperation frameworks, including the ASEAN Framework Agreement on Petroleum Security, the ASEAN Power Grid Enhanced Memorandum of Understanding, and the Trans-ASEAN Gas Pipeline, to ensure stable, secure, sustainable, and resilient energy connectivity and supply.

They also raised their concern on the United States Trade Representative investigations into 60 economies under Section 301 of the Trade Act of 1974 in connection with a failure to act against forced labour practices in trade.

“We will monitor the recently launched Section 301 investigations by the US which affect most of ASEAN member states and engage pro-actively to ensure that the investigation is consistent with international trade rules,” the AEMs added.

-- BERNAMA