Countries across Asia are dusting off strategies from the Covid-19 era, including work-from-home policies and targeted stimulus measures, as they face rising fuel shortages triggered by the ongoing Iran war.
Asia is particularly vulnerable, buying more than 80 percent of the crude that passes through the Strait of Hormuz—a critical shipping lane that has been nearly blocked by Iran since February 28.
No country in the region has mandated WFH yet, but several are considering it.
“I think it is a good idea,” South Korean Energy Minister Kim Sung-whan said yesterday when asked about an International Energy Agency (IEA) suggestion to encourage remote work.
The IEA recently coordinated a record release of around 400 million barrels of oil from strategic reserves to ease the crisis. Alongside this, it recommended measures such as working from home, avoiding unnecessary air travel, and reducing energy consumption.
At a Sydney conference this week, IEA Executive Director Fatih Birol reiterated these calls. He highlighted how similar measures during the Russian-Ukraine conflict helped European countries maintain energy supplies while managing demand.
Industrial powerhouse South Korea launched a public campaign urging citizens to take shorter showers, charge phones during the day, and operate vacuum cleaners on weekends. “We will consult with relevant ministries and actively consider measures for work-from-home,” Minister Kim added.
Meanwhile, the Philippines has shortened workweeks for some government offices. President Ferdinand Marcos declared a national energy emergency, citing the Iran war as an “imminent danger” to the country’s energy supply. Pakistan temporarily closed schools and shifted office work to home, while Sri Lanka introduced a public holiday every Wednesday to stretch fuel reserves.
Singapore is encouraging energy efficiency, from switching to EVs to adjusting air-conditioning temperatures, and Thailand’s Prime Minister Anutin Charnvirakul ordered bureaucrats to suspend overseas trips, use stairs over elevators, dress lighter, and adopt WFH where possible.
Cost-of-Living Relief Measures
Rising fuel costs are putting pressure on households. Japan announced plans to use ¥800 billion (RM20 billion) from reserve funds to subsidize gasoline prices, potentially costing ¥300 billion per month. New Zealand will offer NZ$50 weekly support to low-income families starting April, ensuring timely relief amid global fuel-price shocks, according to Finance Minister Nicola Willis.
In Australia, panic buying has left hundreds of petrol stations dry, particularly in remote areas. The government has proposed doubling penalties for price gouging. Several Asian countries have also released domestic fuel reserves and temporarily eased fuel quality standards to boost supply.
Policy Dilemma
Unlike the pandemic, central banks are not lowering rates to stimulate the economy. In fact, they are considering hikes. The Reserve Bank of Australia has raised rates twice this year to a 10-month high, citing energy risks as a key factor affecting inflation. Analysts predict similar moves in Japan, Britain, and Europe, with potential pressure on Asian economies as local currencies weaken against the dollar.
“Central banks face a classic policy dilemma when oil prices surge—inflation rises but growth may slow,” said Jennifer McKeown, chief global economist at Capital Economics. “The right response depends on why oil prices are rising, how long the shock lasts, and whether inflation expectations are at risk.”
As Asia navigates this energy crunch, governments are trying to balance daily life, economic growth, and national energy security. Remote work, energy-saving measures, and household subsidies are no longer just pandemic tools—they are urgent levers in a world where fuel is scarce, costs are high, and every decision counts.
