{"id":113921,"date":"2026-09-03T13:37:36","date_gmt":"2026-09-03T06:37:36","guid":{"rendered":"https:\/\/www.itd.or.th\/?post_type=itd-data-center&#038;p=113921"},"modified":"2026-09-03T13:37:38","modified_gmt":"2026-09-03T06:37:38","slug":"e49_69","status":"publish","type":"itd-data-center","link":"https:\/\/www.itd.or.th\/en\/itd-data-center\/e49_69\/","title":{"rendered":"Energy Security: A Determinant of ASEAN\u2019s Competitiveness"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The global economy is shifting from an era in which \u201cefficiency\u201d was the primary objective to one in which \u201csecurity\u201d carries increasing weight. Governments and businesses are recognising that markets designed primarily for efficiency may become vulnerable when supply chains are disrupted or trade routes are affected by geopolitical conflict.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tensions among major powers and conflicts in the Middle East provide clear examples of this shift. In particular, disruptions involving the Strait of Hormuz, a critical route for global energy transportation, can have effects that extend far beyond oil prices. Higher energy costs can be transmitted through freight charges, logistics costs, production expenses, and ultimately the prices of a wide range of goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For ASEAN, small and medium-sized enterprises (SMEs) are among the most vulnerable to these pressures because they generally have limited capacity to absorb higher costs and manage risk. Even a modest increase in electricity prices, transportation costs, or raw material prices can significantly reduce profit margins and, in some cases, threaten business survival.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why energy security should be regarded as a competitiveness policy, rather than merely as a matter of public utility provision.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The challenge is that ASEAN Member States differ considerably in their levels and sources of vulnerability. The Philippines, for example, faces risks arising from its dependence on imported energy and the structural constraints of operating an electricity system across an archipelagic geography. When global energy prices rise, these conditions can transmit external price shocks rapidly into the domestic economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Singapore, by contrast, has very limited domestic energy resources but has sought to manage its exposure by diversifying energy supply sources, including natural gas and electricity imports from different locations, while also strengthening cooperation on shipping routes and supply chains. The central principle is not complete energy self-sufficiency, but rather avoiding excessive dependence on any single source.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A further challenge is emerging from the rapid expansion of artificial intelligence and data centres, which is increasing demand for both electricity and water. This issue is particularly significant for Singapore, where land constraints and limited domestic renewable energy potential restrict the scope for large-scale local power generation. The development of data centres in neighbouring countries may therefore become part of a broader regional energy strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These developments make the ASEAN Power Grid (APG) increasingly important. If ASEAN Member States can establish effective cross-border electricity trade, countries with strong renewable energy potential could export electricity to countries facing constraints in land availability, domestic resources, or power-generation capacity. This would allow the region to make more efficient use of its diverse energy resources while strengthening regional energy security and resilience.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Technology alone, however, will not be sufficient. Cross-border electricity trade cannot operate effectively unless national laws, technical standards, regulatory frameworks, and market rules are sufficiently aligned across participating countries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ASEAN should therefore accelerate action in at least three areas. First, the ASEAN Power Grid should move beyond physical interconnection towards operational cross-border and multilateral power trade. This will require regulatory frameworks and market rules that support cross-border investment, electricity transmission, and power transactions among Member States.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Second, ASEAN should establish a regional database covering energy resources, critical materials, and production capacity. A more transparent regional information system would enable governments and businesses to identify shared vulnerabilities, assess supply-chain risks, and increase opportunities for intra-ASEAN sourcing rather than relying predominantly on external suppliers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Third, ASEAN should facilitate the mobility of professionals and skilled workers in the energy and green technology sectors through greater mutual recognition of qualifications and skills certifications. The energy transition requires not only capital investment and infrastructure, but also a workforce with the technical capabilities needed to design, operate, and maintain new energy systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, the global economy is entering an era in which energy, security, and trade can no longer be treated as separate policy areas. If ASEAN continues to approach energy cooperation primarily as a gradual regional initiative, it risks missing an important strategic opportunity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If, however, ASEAN can translate regional cooperation into functioning infrastructure, integrated markets, and practical institutional arrangements, energy could become one of the key foundations of the region\u2019s future competitiveness. A more integrated and secure energy system would help ASEAN withstand external shocks, strengthen economic resilience, and support sustained growth in an increasingly green economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\">Tag: Energy Security, ASEAN Competitiveness, ASEAN Power Grid, Regional Energy Cooperation, Green Economy<strong><\/strong><\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><strong>Author:<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><strong>Mr. Kamol Panmuang<\/strong><br>Senior Researcher<\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><strong>International Institute for Trade and Development (ITD)<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><strong>www.itd.or.th<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><a><em>Publication: Bangkok BIZ Newspaper<\/em><\/a><\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><em>Section: First Section\/World Beat<\/em><em><\/em><\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><em>Volume: 39 Issue: 13241<\/em><br><em>Date: <a>Wednesday, <\/a>Sep. 2, 2026<\/em><br><em>Page: 8 (bottom)Column: \u201cAsean Insight\u201d<\/em><\/p>\n","protected":false},"author":501,"featured_media":113922,"template":"","categories":[35,115,29,70],"tags":[1196,1642,1468,1272,1643],"class_list":["post-113921","itd-data-center","type-itd-data-center","status-publish","has-post-thumbnail","hentry","category-article-en","category-itd-article-en","category-data-center-en","category-research-en","tag-asean-competitiveness","tag-asean-power-grid-2","tag-energy-security-en","tag-green-economy-en","tag-regional-energy-cooperation-2"],"pp_force_visibility":null,"pp_subpost_visibility":null,"pp_inherited_force_visibility":null,"pp_inherited_subpost_visibility":null,"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Energy Security: A Determinant of ASEAN\u2019s Competitiveness - ITD - International Institute for Trade and Development<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.itd.or.th\/en\/itd-data-center\/e49_69\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Energy Security: A Determinant of ASEAN\u2019s Competitiveness - ITD - International Institute for Trade and Development\" \/>\n<meta property=\"og:description\" content=\"The global economy is shifting from an era in which \u201cefficiency\u201d was the primary objective to one in which \u201csecurity\u201d carries increasing weight. 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