The ongoing military conflict involving the United States, Israel, and Iran is causing economic uncertainty in the Asia-Pacific region. Southeast Asia faces potential trade disruptions and rising energy costs, with 64% of Malaysian companies expecting impacts such as transportation delays and increased shipping costs. Retail fuel prices in Cambodia have risen, affecting sectors like apparel and agriculture.
Regional stock markets have reacted, with South Korea's KOSPI and KOSDAQ indices experiencing significant declines. IMF Managing Director Kristalina Georgieva warned that prolonged conflict could impact global energy prices and economic growth. In response, ASEAN countries are enhancing energy resilience and integration, while diplomatic efforts for a ceasefire continue, led by ASEAN and China.
Middle East Conflict Sparks Economic Concerns in Asia-Pacific
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