The annual meeting of the Association of Southeast Asian Nations (ASEAN), to be held in Cebu on Friday, comes amid mounting pressure on member states following the closure of the Strait of Hormuz, a key transit route for the majority of Asia’s crude oil and liquefied natural gas imports.

Marcos said discussions would center on strengthening regional preparedness, stabilizing energy supplies and accelerating diversification efforts to reduce reliance on external sources vulnerable to geopolitical shocks.ASEAN’s 11 member states are among the most affected by the disruption, with many heavily dependent on Middle Eastern energy imports.

The Philippines, which relies almost entirely on the region for crude oil, declared a national energy emergency in March after fuel prices more than doubled.Supply shortages have also been reported in Cambodia, Laos, Myanmar and Thailand, with fuel stations in some areas forced to suspend operations.

Rising energy costs have driven up production and logistics expenses, weakened currencies and slowed economic growth across the region.The summit is expected to address coordinated responses to the crisis, including maintaining open trade flows and avoiding restrictive measures that could exacerbate shortages.

“What do we do? How can we help each other?” Marcos said in earlier remarks, adding that the meeting would focus on oil, food security and the welfare of migrant workers.Philippine Foreign Affairs Assistant Secretary Dominic Xavier Imperial said leaders were expected to issue a joint statement outlining collective measures to manage the crisis and strengthen long-term coordination.

Regional officials have highlighted the need for deeper cooperation, including sharing energy reserves and pursuing joint exploration projects, to reduce dependence on supply routes such as the Strait of Hormuz.

“The protracted Middle East conflict has had an impact on the region, slowing down economic growth and lowering projections,” said Tereso Panga, head of the Philippine Economic Zone Authority, noting that closer coordination could help stabilize supply and mitigate volatility in energy markets.

Chinese startups are setting up operations in Singapore to reassure global clients that their intellectual property is insulated from Beijing’s oversight, while U.S. firms are drawn by easier access to international talent amid tightening visa rules at home, industry executives and analysts said.

Kerry Goh, chief executive of Kamet Capital, said relocating operations to Singapore provides “comfort” to international clients by ensuring data and intellectual property are governed locally. He cited support for a new AI video venture launched by former executives of Alibaba as an example of this shift.

The trend reflects broader fallout from intensifying Sino-U.S. competition over advanced technologies, including export controls and talent mobility restrictions. Policies under U.S. President Donald Trump, particularly changes to H-1B visa rules, have made it harder for companies to deploy global workforces in the United States.

Singapore has responded with incentives aimed at building an AI-focused economy, including fast-track visas for skilled workers and tax benefits for intellectual property registration. Officials say these measures have strengthened the country’s appeal as a technology hub.

Major global firms are expanding their presence. AI developer Anthropic is planning a Singapore office, according to people familiar with the matter, joining companies such as OpenAI, Meta’s Superintelligence Labs, and Google’s DeepMind.

At the same time, the shift has raised concerns among policymakers. Washington has tightened restrictions on advanced chip exports, including limits on sales by Nvidia to China, while Beijing has reportedly imposed constraints on talent mobility for some AI firms expanding overseas.

Analysts warn Singapore’s growing role as a “neutral” jurisdiction could draw scrutiny from both sides. Chong Ja Ian, a political scientist at the National University of Singapore, said the city-state risks being viewed as a grey zone for technology transfers, potentially prompting regulatory pushback.

Despite such risks, companies continue to be attracted by Singapore’s streamlined visa processes, with some employment passes approved within days, and its reputation as a stable, business-friendly environment.

The selloff follows a sharp rise in global oil prices toward $100 a barrel, intensifying pressure on Thailand, which relies on the Middle East for nearly half of its oil and gas imports, according to Krungsri Research.

Data showed foreign investors were net sellers of $823 million in Thai equities in March, while bond outflows reached $705 million, marking the largest combined outflow since October 2024. The reversal came after a brief resurgence in inflows earlier this year, including $1.7 billion in equity purchases in February.

Investor optimism had been buoyed by the election of Prime Minister Anutin Charnvirakul, whose victory raised expectations of political stability and economic reform.

However, the outbreak of the Iran conflict at the end of February triggered a rapid reassessment of risk.Analysts say Thailand faces a more acute challenge than many regional peers due to its economic structure and policy constraints.

The economy had already been struggling, with growth of 2.4% last year and a prolonged period of deflation that prompted a rate cut by the central bank in February.“The risk remains that higher fuel costs hit consumption and disrupt exports and tourism,” said Daniel Tan, a portfolio manager at Grasshopper Asset Management, highlighting concerns about key growth drivers.

Thailand’s heavy reliance on natural gas, which accounts for more than half of its power generation, adds to its exposure. Rising liquefied natural gas imports are expected to further increase costs as energy markets tighten.

The Thai baht has weakened nearly 3% since the conflict began, though it has recovered some ground following a recent ceasefire. Analysts say the currency is acting as a key adjustment mechanism, helping absorb external shocks.

Market participants also point to limited policy flexibility. With public debt nearing the government’s self-imposed ceiling of 70% of gross domestic product, fiscal space is constrained, while monetary policy faces a trade-off between supporting growth and containing inflation.

“There’s a broad consensus among investors that Thailand is in a policy bind,” said Gary Tan of Allspring Global Investments, noting that the central bank has limited room to tighten or ease policy without adverse consequences.

Inflation, which had been contracting earlier this year, is now projected to rise as much as 3.5% depending on how the conflict evolves, marking a sharp shift in the economic outlook.

While a temporary ceasefire has supported a rebound in Thai equities and the baht, analysts caution that prolonged high energy prices could further weigh on growth, consumption and the external balance.