The article argues that Asean+3 governments (ASEAN members plus China, Japan and South Korea) should shield vulnerable households rather than suppress energy prices across the economy, as Brent crude's September 2026 average ran about 60% above February 2026 amid the Middle East conflict. Broad energy subsidies gave quick relief but weakened incentives to conserve energy and were hard to withdraw; Thailand's energy subsidies in FY2024 alone cost an estimated 0.6% of GDP. Many economies instead used targeted cash transfers, consumption vouchers and time-bound support, as in Singapore, Hong Kong and South Korea. Malaysia has moved from blanket fuel subsidies toward a mix of market prices, targeted subsidies and expanded social assistance, though its coverage remains broad. Allowing global prices to pass through gradually, backed by targeted support and clear sunset clauses, is presented as a way to build resilience before the next shock.
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Brent crude averaged about 60% higher in September 2026 than in February 2026 amid the Middle East conflict, fueling inflation and cost-of-living pressures across the ASEAN+3 region (ASEAN members plus China, Japan and South Korea). The article argues for targeted support for the most vulnerable rather than broad price subsidies, which distort price signals, weaken incentives to conserve energy and are hard to withdraw; Thailand's energy subsidies in FY2024 cost an estimated 0.6% of GDP. Economies have taken varied routes: Singapore offers targeted cash support while keeping market-based fuel pricing, Hong Kong let temporary measures expire as scheduled, and Malaysia is moving from blanket fuel subsidies toward a mix of market prices, targeted subsidies and wider social assistance.
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