Japan to provide $12.7 billion to South-east Asia to ease oil price strain
Sign up now: Get insights on Asia's fast-moving developments
Japan imports petroleum-derived products from South-east Asia, including items used at medical facilities.
PHOTO: AFP
TOKYO - Japan has decided to provide a total of US$10 billion (S$12.7 billion) in financial support to South-east Asian nations struggling with surging crude oil prices amid tensions in the Middle East, government sources said on April 15.
The assistance will mainly take the form of loans aimed at helping countries secure crude oil supplies, and Prime Minister Sanae Takaichi is expected to announce the plan during an online meeting with South-east Asian leaders later in the day, according to the sources.
Japan imports petroleum-derived products from South-east Asia, including items used at medical facilities.
Many countries in the region maintain limited oil reserves, so there have been concerns that supply shortages could eventually affect shipments to Japan.
“We are considering cooperation with various Asian countries to secure supplies of petroleum products and strengthen supply chains,” Chief Cabinet Secretary Minoru Kihara told a press conference on April 15.
The surge in oil prices has raised concerns in some South-east Asian countries over their ability to pay for imports.
Any disruption in procurement could have serious consequences for Japan’s medical sector and a wide range of industries, according to the sources. KYODO NEWS
