Middle East Conflict Triggers Energy Crisis, Severely Impacts Industries, Escalating Pressure on Taiwanese Businesses in Thailand
The energy crisis triggered by the Middle East conflict is severely impacting Taiwanese businesses in Thailand. Soaring energy and raw material prices, coupled with supply chain instability, are squeezing profits across various industries, including petrochemicals, food, and construction. Companies are forced to cut costs and enhance competitiveness through automation.
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- 📰 Published: May 5, 2026 at 17:28
- 🔍 Collected: May 5, 2026 at 17:31 (3 min after Published)
- 🤖 AI Analyzed: May 6, 2026 at 11:50 (18h 18m after Collected)
Special report on the U.S.-Iran war
Central News
(Bangkok, May 5, Central News Agency reporter Lee Tsung-hsien) — More than a hundred Taiwanese businesspeople gathered at a Taiwanese Chamber of Commerce event recently held in Bangkok. On stage, there was singing and dancing, and Taiwanese bosses who had been doing business in Thailand for decades chatted cheerfully. However, when the conversation turned to the energy crisis triggered by the Middle East conflict, the atmosphere became heavy. Taiwanese businesspeople frankly stated that soaring energy and raw material prices are squeezing profits, and almost no industry can remain unaffected.
Taiwanese businesspeople in Thailand observe that the impact of this energy crisis was first reflected in the petrochemical industry. Kuo Hsiu-min, a Taiwanese businessperson who specializes in producing high-quality PVC (polyvinyl chloride) plastic products in Thailand, felt it most strongly. She pointed out that raw material prices have risen by about 50%, and the increases were concentrated in just a few weeks after the outbreak of the conflict.
Thailand, which is highly dependent on energy imports, saw diesel prices soar to a record high of about 50 Thai baht per liter (approximately NT$49.65 per liter) in early April since the Middle East conflict began. After government intervention, diesel prices gradually declined. Today, diesel prices are about 40.8 Thai baht per liter.
Kuo Hsiu-min, who has lived in Thailand for more than 30 years, told the Central News Agency, "(Raw material) prices rose almost suddenly." To cope with price fluctuations, companies can only prepare materials in advance. She revealed that what is even more troublesome is that some competitors, due to insufficient inventory and raw material shortages, are unable to deliver goods, making it difficult to fulfill orders even if they have them.
Kang Shu-te, a Taiwanese entrepreneur living in Thailand and former chairman of the Joint Foreign Chambers of Commerce in Thailand (JFCCT), analyzed that because petrochemical raw materials are highly correlated with energy, the escalating Middle East conflict has pushed up raw material prices. Coupled with increased transportation costs, this has increased production costs.
He explained to the Central News Agency that when fuel, electricity, and logistics costs rise simultaneously, for manufacturing industries, "costs have almost comprehensively increased." If companies have insufficient inventory, they will face having to pay higher prices to replenish stock, and may even experience supply disruptions.
Kang Shu-te pointed out that Thailand is highly dependent on energy imports, so rising oil prices mean more funds flowing out of the country, further pushing up inflation and corporate operating pressure. He believes, "In the short term, manufacturing costs will rise, and in the long term, it will be reflected in inflation and weak consumption," adding that without a simultaneous increase in demand, companies find it difficult to fully pass on costs to the market.
In addition to traditional manufacturing, Taiwanese businesspeople operating in the food and construction industries are also facing tremendous pressure.
Hsieh Wen-kuei, a food industry operator, pointed out that upstream suppliers have generally raised prices, and some have even "taken the opportunity to inflate quotes," causing greater pressure on downstream operators, including themselves.
Hsieh Wen-kuei complained that the cost of plastic packaging materials has risen, and the prices inflated by upstream manufacturers are "outrageous." According to his observations, in the past, upstream manufacturers would offer negotiation room or gradual increases, but this time it was "immediate adjustments, no room for negotiation."
Hsieh Wen-kuei, who has been doing business in Thailand for nearly 40 years, helplessly told the Central News Agency that to make matters worse, the Thai economy is not currently doing well, so they can only reduce internal costs through increasing revenue and reducing expenditure to get through this period of uncertainty.
In addition, construction industry operators can hardly remain unaffected. Chang Wei-pin, who has been engaged in engineering construction contracting for more than 30 years, pointed out that since the outbreak of the Iran war, prices of steel bars, cement, and steel structures have risen across the board, and "the increases have been fast and sharp," even with prices being adjusted every two days.
In response to cost pressure, Chang Wei-pin's strategy is cautious procurement. He said, "Only buy what is needed," while slowing down project progress, emphasizing that the company has always upheld a steady and pragmatic spirit to overcome every crisis.
Several Taiwanese businesspeople told the Central News Agency that "uncertainty" is the biggest difference between this crisis and the COVID-19 pandemic.
Kuo Hsiu-min explained that although the pandemic had a widespread impact, companies could anticipate the recovery time through vaccination plans, etc. In contrast, geopolitical events and conflicts are unpredictable, and it is unclear when the war will end or when energy prices will stabilize.
Most Taiwanese businesspeople currently adopt conservative strategies, such as delaying procurement, controlling costs, or slowing down project progress to reduce short-term risks. They generally believe that if the conflict continues, cost pressures will persist for some time.
Kang Shu-te said that companies are now facing more urgent transformation pressures, and competitiveness is a key factor when experiencing similar impacts.
He believes that although this turmoil may not be a "reshuffle," if companies want to survive in instability, they must transform and enhance their competitiveness, such as introducing automation, AI, and smart manufacturing, and strengthening employee skills.
In addition, Kuo Hsiu-min, a Taiwanese businessperson who won the ROC Overseas Chinese Entrepreneur Model Award, emphasized the importance of "safety stock."
Her company had already increased its inventory from Taiwanese manufacturers in advance to cope with the energy crisis, maintaining safety stock. She emphasized that if a company has sufficient competitiveness, it is more capable of dealing with impacts.
Kuo Hsiu-min told the Central News Agency, "The company has four own brands and develops its own molds to establish differentiation." In addition, it continues to transform and upgrade, such as having ISO certification for 20 years, a complete supply chain system, semi-automated production, and also practicing ESG.
Facing the energy crisis and Thailand's economic slowdown, Kuo Hsiu-min pointed out that she is still optimistic about Thailand's future prospects. With the new government holding a majority of seats in parliament, the political situation is expected to be relatively stable. Coupled with Thailand's geographical location as a regional hub and more stable infrastructure than surrounding countries, it still has regional competitiveness. However, she also emphasized that the premise is for the government to maintain policy stability and continue to improve the investment environment.
Furthermore, in the face of this impact, some Taiwanese businesspeople have made proactive plans, in addition to strengthening their own competitiveness, some have also increased investment in the energy sector. Kang Shu-te is one of them; five years ago, he began investing in electric vehicles and developing smart mobility systems.
He explained that Thailand is not an oil-producing country, and every time oil prices rise, it has to pay more foreign exchange. Therefore, developing electric vehicles is a national energy security strategy to reduce dependence on oil. He also said that diversified power sources will increase the resilience of energy supply.
Kang Shu-te pointed out, "Electric vehicles will evolve into smart mobility systems in the future," just like an iPhone with four wheels that can move. Therefore, he believes that there are huge business opportunities in charging infrastructure.
From the past pandemic to the current energy crisis brought by the war, facing numerous challenges, Kang Shu-te pointed out the key to corporate survival: "Change is always there, and if you can't keep up, you might disappear." (Editor: Tang Pei-chun) 11505
Central News
(Bangkok, May 5, Central News Agency reporter Lee Tsung-hsien) — More than a hundred Taiwanese businesspeople gathered at a Taiwanese Chamber of Commerce event recently held in Bangkok. On stage, there was singing and dancing, and Taiwanese bosses who had been doing business in Thailand for decades chatted cheerfully. However, when the conversation turned to the energy crisis triggered by the Middle East conflict, the atmosphere became heavy. Taiwanese businesspeople frankly stated that soaring energy and raw material prices are squeezing profits, and almost no industry can remain unaffected.
Taiwanese businesspeople in Thailand observe that the impact of this energy crisis was first reflected in the petrochemical industry. Kuo Hsiu-min, a Taiwanese businessperson who specializes in producing high-quality PVC (polyvinyl chloride) plastic products in Thailand, felt it most strongly. She pointed out that raw material prices have risen by about 50%, and the increases were concentrated in just a few weeks after the outbreak of the conflict.
Thailand, which is highly dependent on energy imports, saw diesel prices soar to a record high of about 50 Thai baht per liter (approximately NT$49.65 per liter) in early April since the Middle East conflict began. After government intervention, diesel prices gradually declined. Today, diesel prices are about 40.8 Thai baht per liter.
Kuo Hsiu-min, who has lived in Thailand for more than 30 years, told the Central News Agency, "(Raw material) prices rose almost suddenly." To cope with price fluctuations, companies can only prepare materials in advance. She revealed that what is even more troublesome is that some competitors, due to insufficient inventory and raw material shortages, are unable to deliver goods, making it difficult to fulfill orders even if they have them.
Kang Shu-te, a Taiwanese entrepreneur living in Thailand and former chairman of the Joint Foreign Chambers of Commerce in Thailand (JFCCT), analyzed that because petrochemical raw materials are highly correlated with energy, the escalating Middle East conflict has pushed up raw material prices. Coupled with increased transportation costs, this has increased production costs.
He explained to the Central News Agency that when fuel, electricity, and logistics costs rise simultaneously, for manufacturing industries, "costs have almost comprehensively increased." If companies have insufficient inventory, they will face having to pay higher prices to replenish stock, and may even experience supply disruptions.
Kang Shu-te pointed out that Thailand is highly dependent on energy imports, so rising oil prices mean more funds flowing out of the country, further pushing up inflation and corporate operating pressure. He believes, "In the short term, manufacturing costs will rise, and in the long term, it will be reflected in inflation and weak consumption," adding that without a simultaneous increase in demand, companies find it difficult to fully pass on costs to the market.
In addition to traditional manufacturing, Taiwanese businesspeople operating in the food and construction industries are also facing tremendous pressure.
Hsieh Wen-kuei, a food industry operator, pointed out that upstream suppliers have generally raised prices, and some have even "taken the opportunity to inflate quotes," causing greater pressure on downstream operators, including themselves.
Hsieh Wen-kuei complained that the cost of plastic packaging materials has risen, and the prices inflated by upstream manufacturers are "outrageous." According to his observations, in the past, upstream manufacturers would offer negotiation room or gradual increases, but this time it was "immediate adjustments, no room for negotiation."
Hsieh Wen-kuei, who has been doing business in Thailand for nearly 40 years, helplessly told the Central News Agency that to make matters worse, the Thai economy is not currently doing well, so they can only reduce internal costs through increasing revenue and reducing expenditure to get through this period of uncertainty.
In addition, construction industry operators can hardly remain unaffected. Chang Wei-pin, who has been engaged in engineering construction contracting for more than 30 years, pointed out that since the outbreak of the Iran war, prices of steel bars, cement, and steel structures have risen across the board, and "the increases have been fast and sharp," even with prices being adjusted every two days.
In response to cost pressure, Chang Wei-pin's strategy is cautious procurement. He said, "Only buy what is needed," while slowing down project progress, emphasizing that the company has always upheld a steady and pragmatic spirit to overcome every crisis.
Several Taiwanese businesspeople told the Central News Agency that "uncertainty" is the biggest difference between this crisis and the COVID-19 pandemic.
Kuo Hsiu-min explained that although the pandemic had a widespread impact, companies could anticipate the recovery time through vaccination plans, etc. In contrast, geopolitical events and conflicts are unpredictable, and it is unclear when the war will end or when energy prices will stabilize.
Most Taiwanese businesspeople currently adopt conservative strategies, such as delaying procurement, controlling costs, or slowing down project progress to reduce short-term risks. They generally believe that if the conflict continues, cost pressures will persist for some time.
Kang Shu-te said that companies are now facing more urgent transformation pressures, and competitiveness is a key factor when experiencing similar impacts.
He believes that although this turmoil may not be a "reshuffle," if companies want to survive in instability, they must transform and enhance their competitiveness, such as introducing automation, AI, and smart manufacturing, and strengthening employee skills.
In addition, Kuo Hsiu-min, a Taiwanese businessperson who won the ROC Overseas Chinese Entrepreneur Model Award, emphasized the importance of "safety stock."
Her company had already increased its inventory from Taiwanese manufacturers in advance to cope with the energy crisis, maintaining safety stock. She emphasized that if a company has sufficient competitiveness, it is more capable of dealing with impacts.
Kuo Hsiu-min told the Central News Agency, "The company has four own brands and develops its own molds to establish differentiation." In addition, it continues to transform and upgrade, such as having ISO certification for 20 years, a complete supply chain system, semi-automated production, and also practicing ESG.
Facing the energy crisis and Thailand's economic slowdown, Kuo Hsiu-min pointed out that she is still optimistic about Thailand's future prospects. With the new government holding a majority of seats in parliament, the political situation is expected to be relatively stable. Coupled with Thailand's geographical location as a regional hub and more stable infrastructure than surrounding countries, it still has regional competitiveness. However, she also emphasized that the premise is for the government to maintain policy stability and continue to improve the investment environment.
Furthermore, in the face of this impact, some Taiwanese businesspeople have made proactive plans, in addition to strengthening their own competitiveness, some have also increased investment in the energy sector. Kang Shu-te is one of them; five years ago, he began investing in electric vehicles and developing smart mobility systems.
He explained that Thailand is not an oil-producing country, and every time oil prices rise, it has to pay more foreign exchange. Therefore, developing electric vehicles is a national energy security strategy to reduce dependence on oil. He also said that diversified power sources will increase the resilience of energy supply.
Kang Shu-te pointed out, "Electric vehicles will evolve into smart mobility systems in the future," just like an iPhone with four wheels that can move. Therefore, he believes that there are huge business opportunities in charging infrastructure.
From the past pandemic to the current energy crisis brought by the war, facing numerous challenges, Kang Shu-te pointed out the key to corporate survival: "Change is always there, and if you can't keep up, you might disappear." (Editor: Tang Pei-chun) 11505