Japan is preparing a financial assistance package of up to $10 billion for countries across Southeast Asia, aiming to ease the strain of surging crude oil prices linked to the ongoing conflict in the Middle East, local media reported.
Prime Minister Sanae Takaichi is expected to unveil the initiative during a virtual meeting with regional leaders on Wednesday afternoon, according to NHK.
Similar reports were carried by Kyodo News and Yomiuri Shimbun, noting that the support could include loan-based financing.
Japan relies on petroleum-derived products sourced from Southeast Asia, particularly for medical use, raising concerns that limited oil reserves in some countries could disrupt supply chains, the reports said.
Speaking earlier on Wednesday, Chief Cabinet Secretary Minoru Kihara said the government is exploring closer cooperation with Asian partners to safeguard access to petroleum-based goods and reinforce supply chain resilience.
Any disruption to procurement could pose risks to Japan’s healthcare system, according to local media. Funding is expected to be channelled through the government-backed Japan Bank for International Cooperation, Kyodo reported, citing unnamed officials.
Several Southeast Asian countries, including Vietnam, have previously turned to Japan and South Korea for support in securing crude oil supplies.
Japan has already released oil from its strategic reserves in two phases since the Iran conflict began around six weeks ago, though officials have maintained that these stockpiles are intended primarily for domestic use.
Despite the global pressures, Japan is not currently facing an immediate supply shortfall. The trade ministry said sufficient crude can be secured for the year by diversifying import routes away from the Strait of Hormuz and utilising existing reserves.
