Manila, September 24 (AseanAll) — The Asian Development Bank (ADB) today approved $1.5 billion to help the Philippines protect families from rising prices and keep essential public services running as the Middle East conflict strains its economy.
“Every week this crisis continues to ask more of people who have little left to give,” said ADB President Masato Kanda. “They have a right to expect that the institutions serving them will meet their struggle with equal resolve. With this financing, we are backing the Philippines’ determination to keep its people secure and its future within its own hands.”
The financing will help the government secure fuel supplies, maintain affordable power and health services, keep food and medicines affordable, and support people whose incomes are threatened by the conflict. It will also help bring affected overseas Filipino workers home and assist them on their return.
The Philippines imports nearly all its fuel and depends heavily on imported fertilizers, leaving it exposed to sharp increases in global prices. Oil accounts for about a third of its primary energy supply and comes largely from the Middle East. A significant share of fertilizer imports also comes directly or indirectly from the region. Higher prices raise transport costs and the cost of growing rice and other crops.
The Middle East remains a major destination for overseas Filipino workers, with about 1.1 million workers deployed to the region in 2025. Workers there sent home about 18% of the Philippines’ $35.6 billion in total remittances in 2025, helping their families meet daily expenses. Labor deployment to the region has declined substantially this year amid the conflict.
ADB’s Assistance for Greater Resilience and Alleviation of Poverty program will help finance the government’s Unified Package for Livelihoods, Industry, Food, and Transport. The support comes through ADB’s Countercyclical Support Facility, its region-wide crisis financing mechanism.
The government’s response aims to reach millions of poor and vulnerable Filipinos and their families. Measures include fare discounts, subsidies for provincial and small electric cooperatives, and fuel and fertilizer subsidies. Medical relief packages and cash assistance will support poor and vulnerable households, public transport operators and drivers, small-scale farmers, and fisherfolk.
Today’s approval for the Philippines builds on ADB’s broader regional support. As the Association of Southeast Asian Nations’ main bank, ADB has previously provided about $500 million to help Southeast Asian economies weather the impacts of the conflict in the Middle East.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
