Southeast Asia in March 2026: the most important developments in economy
Southeast Asia's economy in March 2026 was dominated by the Middle East war and its effect on fuel supply and prices. Chandra Asri, Indonesia's petrochemical company, declared force majeure on March 3 over feedstock and shipping disruptions, and Thailand was named among the Asian economies hardest hit by the closure of the Strait of Hormuz. Heavy fuel oil prices in Singapore rose 40 percent, and petrol there passed its 2022 highs. Thai companies also looked abroad: Banpu Power announced a $90 million energy storage project in the United States.
Fuel shortages and price rises spread through the region. In the Philippines, President Ferdinand Marcos Jr. sought emergency powers over fuel excise taxes and signed a law granting them on March 25. Ferry trips in the Visayas were cancelled, gas stations closed, and diesel was projected to reach 130 pesos per liter. Marcos said on March 24 that plane groundings were a distinct possibility because of a jet fuel shortage. In Thailand, fuel retailers urged dealers to cap refuelling, and fuel prices jumped 22 percent after the government ended subsidies. Queues formed at gas stations in Myanmar, and Russia offered to sell oil to Thailand. Vietnam and Russia agreed to an energy deal and a nuclear plant agreement.
Aviation absorbed much of the shock. Airlines cancelled or rerouted flights across the region, Emirates and Etihad resumed limited flights to Singapore, Thai Airways raised fares by 10 to 15 percent, and Singapore Airlines extended cancellations until April 30.
Central banks and markets weighed inflation against growth. Bank Indonesia held its rate at 4.75 percent, and Fitch revised Indonesia's outlook to negative. The Bangko Sentral ng Pilipinas held its rate at an unscheduled meeting, against market expectations of a hike. President Prabowo Subianto said Indonesia could breach its 3 percent deficit cap in a crisis, and Indonesia and Japan signed deals worth $22.6 billion. The Singapore Exchange announced plans for Asian government bond futures, Sunway Healthcare rose 37 percent on its Malaysian market debut, and the US opened a trade investigation into Malaysia.
by WorldBrief & Maksim Micheliov | AI-generated summary
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