Overseas Chinese Bank: Rising energy prices and reduced imports pose a heavy blow to Asian economies.

Lavanya Venkateswaran of Oversea-Chinese Banking Corporation (OCBC) said that central banks in Asian countries are cautiously monitoring the tense situation in the Middle East. She mentioned that for economies like India, the Philippines, Thailand, and Vietnam, the pain brought by rising energy prices and reduced imports of oil and natural gas is no less than a heavy blow. These economies are net importers of energy, and without subsidies, they will face increasing inflationary pressures. The senior economist mentioned that the governments of India, Thailand, and Vietnam can transfer some subsidy burden off-budget, but this is only a temporary measure. Indonesia and Malaysia can use fiscal buffers to mitigate the impact, but the prolonged and persistent rise in oil prices will severely affect their ability to maintain fiscal support measures.