ASEAN Urged To Address Financing Issues Before Implementing Regional Fuel-sharing Mechanism

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 13 (Bernama) -- ASEAN should look into the financing aspects of the proposed framework for regional fuel-sharing mechanism before implementing it, said ASEAN Economic Club chairman Tan Sri Michael Yeoh.

“This is because maintaining an oil stockpile will be very expensive,” he told Bernama after appearing on Bernama TV’s “The Nation” programme titled “Malaysia in a Divided World”.

The framework for the regional fuel-sharing mechanism was proposed in the just concluded 48th ASEAN Summit and Related Meetings in Cebu, the Philippines, aiming to enable a more immediate response to the impact of the West Asia crisis.

Commenting on the framework which was also mentioned by Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani during the summit, Yeoh said it is a very important initiative.

He said the club is hopeful that the framework would be finalised by the next ASEAN Summit.

“They (ASEAN) also have to look at the mechanism for sharing oil supplies should there be a need among member countries,” he said.

Commenting on the impact of the closure of the Strait of Hormuz on ASEAN, Yeoh said it has caused a significant impact on the bloc as almost 40 per cent of crude oil in the region were imported from the Middle East through the Strait of Hormuz.

He said the supply of fertilisers in the region was also affected.

Hence, he opined that ASEAN members including Malaysia should look for new sources of fertilisers supply.

Yeoh suggested a strong commitment is needed to ensure the free navigation of ships in the Strait of Malacca to avoid the similar incident as in the Strait of Hormuz.

-- BERNAMA