The Ministry of Commerce joined the AEC Council meeting to discuss plans to address the Middle East crisis impacting energy and food supplies, accelerate supply chain enhancement, and promote the DEFA digital economic agreement aimed for signing by late 2026 to boost the economy.
Dr. Kirida Phaopijit, Assistant Minister of Commerce (representing the Deputy Prime Minister and Minister of Commerce). She reported on participation in the 27th ASEAN Economic Community (AEC) Council meeting on 7 May 2026 in Cebu City, Philippines, noting that ASEAN’s overall economy continues steady growth potential, expected to expand by 4.6% in 2026—higher than the global growth forecast of 3.2%.
Although the regional economy shows positive trends, the prolonged Middle East conflict remains a significant risk, especially the closure of the crucial Strait of Hormuz oil shipping route. This directly affects economic stability in terms of energy prices, inflation, food security, and disruption of essential supply chains.
To face macroeconomic challenges, ASEAN set guidelines to stabilize long-term supply chains, focusing on facilitating trade and investment within the region, and turning the energy crisis into an opportunity for digital and green economy transitions.
Dr. Kirida explained that ASEAN will accelerate linking energy infrastructure under the Petroleum Security Agreement framework, advance ASEAN power grid and natural gas pipeline projects, alongside enhancing food security through regional food reserve mechanisms and the ASEAN food security information system to closely monitor and assess situations.
Additionally, during the joint meeting of ASEAN foreign and economic ministers, Thailand proposed measures to increase regional resilience against the Middle East crisis, preparing to present them at the 48th ASEAN Summit.
Meanwhile, Thailand leads policy discussions to finalize pending issues in the ASEAN Digital Economy Framework Agreement (DEFA) negotiations, which are nearing conclusion. The agreement is expected to be signed at the ASEAN leaders’ meeting later this year, marking a significant step in advancing the region’s digital economy.
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