Asia is reaching back into its COVID-era toolbox. Work-from-home policies, shortened work weeks, school closures, and stimulus checks are all on the table again — not to stop a virus, but to survive a war.
With Iran’s blockade of the Strait of Hormuz now entering its second month, the region that buys more than 80% of the crude transiting the waterway is scrambling to respond. No country has enforced work-from-home measures yet, but officials across Asia are openly discussing them.
“I think it is a good idea,” South Korean Energy Minister Kim Sung-whan said Tuesday when asked about an International Energy Agency recommendation for people to work from home. His ministry later confirmed it would “actively consider measures for work-from-home.”
The Regional Snapshot
From Seoul to Sydney, governments are rolling out measures that would have felt familiar three years ago.
Pakistan closed schools for two weeks and said office workers would work from home.
Sri Lanka declared a public holiday every Wednesday to stretch fuel supplies.
The Philippines shortened the work week in some government offices and declared a state of national energy emergency, with President Ferdinand Marcos saying the conflict poses an “imminent danger” to the country’s energy supply.
Thailand ordered bureaucrats to suspend overseas trips, set air conditioning above 25°C, avoid suits and ties, use stairs instead of elevators, and work from home.
South Korea launched a public campaign asking people to cut shower time, charge phones during the day, and run vacuums on weekends.
Singapore urged people and businesses to switch to energy-efficient appliances, use electric vehicles, and set air conditioners to a higher.
The IEA Playbook
The International Energy Agency, which has agreed to a record release of around 400 million barrels of oil from strategic stockpiles, has outlined proposals to ease oil price pressures. Working from home and avoiding air travel are at the top of the list.
IEA Executive Director Fatih Birol repeated those calls at a conference in Sydney this week, pointing to Europe’s experience after the Russian invasion of Ukraine.
“There were real-life tests. European countries adopted these measures, and it was announced by the European governments. It helped them a lot to go through these difficult times without Russian energy … but keeping the lights on,” Birol said.
Stimulus Measures
As rising fuel costs bite into household budgets, some countries have turned to stimulus measures.
Japan said Tuesday it plans to tap 800 billion yen ($5 billion) in reserve funds to finance subsidies aimed at keeping gasoline prices at about 170 yen per liter. The measure would cost as much as 300 billion yen per month.
New Zealand announced temporary financial support of NZ$50 ($29.30) every week from April for low-income families. “We know these families will be hit particularly hard by the global fuel-price shock,” Finance Minister Nicola Willis said.
Australia, where hundreds of petrol stations are running dry from panic buying and shortages, introduced legislation to double penalties for fuel price gouging.
Several Asian countries have also released petrol and diesel from domestic reserves and temporarily loosened quality standards to increase supply.
The Policy Dilemma
The glaring contrast with the pandemic is that central banks are not rushing to cut interest rates. In fact, they are hiking.
During COVID, demand collapsed as economies were shuttered, and policymakers responded with massive stimulus. Now, central banks face the opposite problem: energy-driven inflation.
The Reserve Bank of Australia has already hiked rates twice this year, citing energy risks as a material threat to inflation and raising rates to a 10-month high last week. Investors expect Japan, Britain, and Europe to raise rates in the coming months. For Asian economies, pressure may be even more acute as their currencies slip against the dollar.
“Central banks face a classic policy dilemma when oil prices surge — inflation rises but growth might weaken,” Jennifer McKeown, chief global economist at Capital Economics, said in a note last week.
“The right response depends crucially on why oil prices are rising, how persistent the shock is, and whether inflation expectations are at risk,” she added.
What Comes Next
No Asian country has yet pulled the trigger on large-scale work-from-home mandates. But the conversation has shifted from “if” to “when.” The Strait of Hormuz remains blocked. Fuel prices are climbing. And governments that learned hard lessons during COVID are dusting off playbooks they hoped they would never need again.
For workers in Seoul, Manila, Bangkok, and beyond, the message is becoming clear: the pandemic is over. But the measures that got them through it may be coming back.
