Japan has pledged to provide $10bn (£7.4bn) to help its Asian neighbours, especially those in South East Asia, secure energy including crude oil as the region reels from disruptions caused by the Iran war.
Japanese Prime Minister Sanae Takaichi announced the new cooperation framework on Wednesday after an online meeting with other Asian leaders.
Japan relies on South East Asia for petroleum-derived products, most notably medical equipment – something that Takaichi stressed at a press briefing on Wednesday.
“Japan is closely interconnected with each Asian country through supply chains and mutually dependent with them,” she said.
Japan’s cooperation framework aims to help Asian countries procure crude oil and petroleum products, as well as maintain supply chains and expand stockpiles.
Asia is especially vulnerable to energy supply disruptions stemming from blockades of the Strait of Hormuz, as nearly 90% of the oil and gas passing through the key waterway is bound for the region.
Japan’s foreign ministry said the $10bn in financial aid was roughly equivalent to a year’s worth of crude oil imports by countries in the Association of Southeast Asian Nations (Asean).
It added that the initiative was welcomed by leaders at the meeting – including those from the Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh and South Korea – and that funding for the project would come from a range of sources.
These include state-backed institutions like Japan Bank for International Cooperation and Nippon Export and Investment Insurance, as well as the Japan International Cooperation Agency and the Asian Development Bank.
Takaichi said the initiative would not negatively impact Japan’s domestic oil supplies.
At the end of 2025, Japan’s reserves held enough oil for 254 days of domestic consumption – but the global energy crisis has prompted authorities to tap into these reserves.
Last month, Japan released a record 50 days’ worth of oil from its reserves. Authorities have said they would release another 20 days’ worth in early May.
Fears about a shortage of naphtha – a petrochemical produced from crude oil and a key raw ingredient in plastics – are also simmering in Japan. These worries are especially pronounced in hospitals, where critical medical supplies like syringes, gloves and dialysis equipment are made with the substance.
While Takaichi has urged calm and said there would be no immediate disruptions, fears remain that naphtha shortages could further stress the country’s healthcare system, already straining under an ageing population.
There are also anxieties across South East Asia, which has been hit hard by soaring oil prices. Governments have urged people to carpool and curb the use of air-conditioning in a bid to conserve energy. The Philippines, meanwhile, has declared a national energy emergency.
On Wednesday, at the same summit hosted by Japan, Philippine president Ferdinand Marcos Jr called on Asean to activate its fuel-sharing pact.
“No single country in Asia can insulate itself from supply chain shocks of this scale by acting alone,” he said.
Source:
www.graphic.com.gh