How ASEAN+3 Can Build Resilience to Energy Shocks
Governments should prioritize targeted support over broad subsidies to preserve fiscal resources for future shocks
In the ASEAN+3 region, governments are urged to focus on targeted support rather than broad subsidies to build resilience against energy shocks. Rising energy costs, driven by geopolitical tensions and global uncertainty, have led to significant inflationary pressures across the region. While broad energy subsidies provided immediate relief, they also reduced incentives for energy conservation and strained public finances.
In contrast, targeted cash transfers and cash vouchers have been used by countries like Thailand, Hong Kong, Indonesia, Japan, Malaysia, and Singapore to support vulnerable populations without depleting resources needed for future crises. Building long-term energy resilience requires diversified energy sources, improved efficiency, strategic reserves, and investments in renewable energy and connectivity.
ASEAN+3 economies should prioritize targeted assistance to protect vulnerable sectors while preserving fiscal health and maintaining energy price signals for future preparedness.
Written by urgent.news from Thailand Business News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
