Tokyo leads crisis offensive with $10B

Tokyo leads crisis offensive with $10B | Daily Tribune

The meeting was convened “because it’s mostly the Asian countries that have been heavily affected by the crisis,” Kazuya explained.

“Malaysia produces oil, but the Philippines, Japan, Korea, and also China have all been affected by the disruption of the oil and gas supplies from the Middle East,” Kazuya added.

Japan pledged $10 billion in financial support for Southeast Asian economies as the Middle East crisis threatens Tokyo’s procurement of vital medical equipment derived from oil, according to an Agence France-Presse report of the meeting.

The initiative, dubbed “Power Asia,” will see Japan contribute 1.6-trillion yen to Southeast Asian nations to strengthen their energy supply chains and help them procure crude oil and petroleum products more effectively.

Takaichi unveiled the initiative after her online summit with several ASEAN member states, within a framework known as the Asia Zero Emission Community (AZEC) plus.

“We rely on supplies from Asian countries for medical items such as equipment used for dialysis patients, as well as waste fluid containers and gloves required for surgical procedures,” she told reporters in Tokyo.

“Together with the nations of Asia, we will work to build a resilient energy, critical mineral and supply chain framework, so that all of Asia can become stronger and more prosperous.”

She denied that the new partnership would have any adverse effect on Japan’s domestic oil supply.

Cooperation beats crisis

In the meeting, President Marcos called for stronger regional cooperation to address energy supply disruptions.

In his teleconference message, Marcos underscored the country’s vulnerability to global oil supply shocks, citing the closure of the Strait of Hormuz in February as a major disruption that triggered fuel price increases.

“As an archipelagic nation we are mostly dependent on imported petroleum,” he said, noting that global supply chain disruptions are “felt severely” in the country.

The President said rising diesel and liquefied petroleum gas (LPG) prices have placed pressure on key sectors, including transport, food supply, and manufacturing, amid the imported inflation.

In response, the government declared a national energy emergency and rolled out the Unified Package for Livelihood, Industry, Food and Transport program to mitigate the impact.

Marcos, however, emphasized that national measures alone are insufficient.

“No single country in Asia can insulate itself from supply chain shocks of this scale by acting alone,” he said.

He highlighted ongoing government efforts to strengthen energy resilience, including diversifying oil sources, increasing fuel stocks, and developing a strategic petroleum reserve.

The Philippines is also accelerating the electrification of its transport, expanding biofuel blending, and promoting energy efficiency to reduce dependence on imported fuel.

At the regional level, Marcos backed the implementation of the ASEAN Petroleum Security Agreement, which provides mechanisms for coordinated emergency response and fuel sharing among member states.

He proposed the early activation of the agreement’s emergency response system, a regional study on joint oil stockpiling, and the establishment of standardized protocols for emergency fuel allocation.

Marcos also welcomed Japan’s initiative to strengthen regional supply-chain cooperation, noting Japan’s experience in maintaining robust petroleum reserves.

“The Philippines stands ready to work alongside every economy represented here,” he said, stressing the need for secure, affordable, and resilient energy systems across Asia.