ADB rolling out support for Asia-Pacific economies amid Middle East conflict
The assistance will be ‘rapid, flexible and scalable’, said the ADB, as petrol prices continue to rise. ADB
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The Asian Development Bank (ADB) announced a new financial support package on March 24. The assistance aims to help developing member countries handle the economic fallout from the ongoing conflict in the Middle East.
Describing the assistance as “rapid, flexible, and scalable”, the ADB explained that it focuses on immediate fiscal pressures as well as long-term resilience. Among the measures are fast-disbursing budget support and expanded trade and supply chain financing to secure essential imports, including oil.
ADB president Masato Kanda noted the initiative is heavily influenced by the bank’s experience in supporting the region through periods of global uncertainty.
“This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty,” said Kanda.
DMCs refer to low- and middle-income member countries in Asia and the Pacific that are eligible for ADB financial and technical assistance.
This includes Cambodia, Vietnam and the Philippines, which often face structural vulnerabilities and rely on external support to sustain growth and stability.
According to ADB’s latest analysis, the Middle East conflict has already disrupted global shipping routes, increasing costs and delivery times.
Risks from the ongoing Middle East conflict are felt beyond energy markets; key industrial inputs such as petrochemicals and fertilisers are also affected, with potential flow-on effects on agriculture and food production.
The bank warned that rising uncertainty is tightening financial conditions across the region, weighing on currencies and capital flows.
It explained that fast-disbursing budget support through mechanisms, such as its Countercyclical Support Facility, are designed to help governments stabilise their economies and protect vulnerable populations.
Meanwhile, the Trade and Supply Chain Finance Program (TSCFP) supports private sector access to critical imports. The ADB has decided to temporarily reinstate support for oil imports under this program.
The Manila-based lender said it is already in discussions with severely affected member countries and will continue working with governments, development partners and the private sector to coordinate responses.
-Phnom Penh Post-
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