The Association of Southeast Asian Nations (ASEAN) called for stronger collaboration in energy security amid the region’s exposure to supply disruptions due to the Middle East conflict, which has already triggered economic shocks.

In a joint statement, ASEAN economic ministers agreed to manage energy consumption, diversify energy sources and supply routes, and enhance regional cooperation on energy preparedness and reserves as measures against supply upheavals.

“We underscored the importance of strengthening regional energy security and resilience, particularly given ASEAN’s exposure to global oil and liquefied natural gas (LNG) supply routes and developments in international energy markets,” the ministers said.

The ministers said this should encourage each member state to continue collaborating in advancing ASEAN’s existing energy cooperation frameworks to ensure stable, secure, sustainable, and resilient energy connectivity and supply.

As tensions in the Middle East escalate, the economic ministers said supply disruptions are also generating broader economic repercussions within ASEAN in the form of higher freight, insurance, and logistics costs.

Increases in such costs ultimately contribute to inflationary pressures on energy, food, and other essential goods, they said.

“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,” the ministers said.

“It will also impact economic security and stability, the livelihoods of millions of people in the region, and hinder economic progress in ASEAN,” they added.

As such, the economic ministers joined the call of foreign ministers for the cessation of hostilities in the Middle East through 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.

To mitigate the impact of the crisis, the economic ministers agreed to maintain open trade and investment policies through a transparent and predictable regional economic architecture.

Earlier, the Philippines appealed to member states to uphold ASEAN centrality as some members planned to halt exports of crude products in a bid to protect their respective energy supplies.

For one, Thailand recently moved to ban fuel exports, with some exemptions, as it looks to secure its domestic energy supply and temper further increases in fuel prices.

“We acknowledged the diversity in levels of economic development and resilience among ASEAN member states and underscored the importance of ensuring that regional responses and cooperation mechanisms remain responsive to the needs and circumstances of developing and more vulnerable economies within ASEAN,” the ministers said.

By keeping supply chains open, the ministers said the region would uphold food security, reducing price volatility in the process.

The ministers also expressed concern over other global trade uncertainties, particularly the Section 301 investigations by the United States (US), which now cover most ASEAN member states, including the Philippines.

With these developments, they emphasized the need for stronger coordination across sectoral bodies, including those responsible for trade, finance, insurance, energy, agriculture, transport, and the digital economy through “timely exchanges of information and best practices.”

“Such cooperation will help sustain ASEAN’s stability, sustainability, resilience, and inclusive growth in an increasingly uncertain and unpredictable global environment”, they noted.