Executive Secretary Ralph Recto said all meetings — from working groups to ministerial sessions — would be conducted virtually, a shift affecting hundreds of engagements typically held in person throughout the year.

This move comes as Southeast Asia grapples with the economic fallout of the United States-Israel war on Iran, which has disrupted global energy markets and pushed oil prices higher. 

In a report, the Asian Development Bank (ADB) warned that developing economies in the region could lose more than two percentage points of growth if the conflict drags on, with a prolonged war also fuelling inflation.

The lender said the region’s exposure stems largely from its dependence on imported energy and global trade flows rather than direct involvement in the conflict. In a worst-case scenario of a year-long war, oil prices could surge past $155 per barrel, compounding inflationary pressures and straining public finances across the region.

Recto said the scaled-down format would allow Manila to “save on expenses and focus on the most important,” while still aiming for “substantial discussions and productive results” despite the crisis.

The Philippines is this year’s ASEAN chair, a role that typically involves hosting a full calendar of in-person meetings across multiple levels of government . Instead, only the two leaders’ summits — scheduled for May in Cebu and November in Manila — will proceed physically, though even these are expected to be pared down.

Marcos has already said the May summit will adopt a “bare-bones” format focused on urgent regional concerns, including energy security, food supply disruptions and the welfare of migrant workers.

Officials said the decision to shift meetings online is partly aimed at redirecting funds to cushion the domestic impact of rising oil prices, particularly on vulnerable sectors.

The Department of Foreign Affairs has been tasked with briefing ASEAN counterparts on the changes and adjusting expected outcomes accordingly, while host agencies are being instructed to coordinate the transition to virtual formats.

The shift also reflects broader pressures across ASEAN economies, many of which rely heavily on energy imports from the Gulf and have been hit by supply disruptions and price volatility since the conflict began. Regional officials have warned of knock-on effects on inflation, trade and employment .

Still, Manila maintained that the bloc’s core objectives would remain intact.

“A stripped-down ASEAN [programme] will still be able to achieve its goal of strengthening regional unity,” Recto said, adding that “pomp and pageantry” would give way to “problem-solving” as the region confronts mounting global challenges.

Beijing’s defence spokesman, Zhang Xiaogang, had issued a sharp warning to the Philippines over the South China Sea dispute, accusing Manila of “blackmailing the big by the small.”

“Would you offer to talk to somebody who slammed your country that way? Of course not,” Teodoro told reporters, as shown by state-run media PTV. “I would be willing to talk if there was a semblance of good faith.” 

Teodoro described Zhang’s remarks as a “slap to the face.”

The two countries have long been at odds over sections of the South China Sea that China claims under its “nine-dash line” but which international law recognises as within the Philippines’ exclusive economic zone. 

Despite a 2016 arbitral tribunal ruling in Manila’s favour, Beijing continues to reject the decision, and the contested waters remain flashpoints between their coast guards.

Zhang accused the Philippines of provoking China and “making waves at sea by soliciting external support,” but insisted Beijing would continue to defend its maritime rights through “legitimate, legal, professional and prudent actions.”

"For a period of time, the Philippine side has launched frequent infringements and provocations against China, stirring up troubles at sea," he said, further accusing Manila of trying to "make waves at sea by soliciting external support, blackmailing and pressuring China through bluffing acts that resemble the fox borrowing the tiger's terror."

"We would never allow any provocations and trouble-making to work, nor would we leave any room for blackmailing the big by the small," he continued.

Chinese President Xi Jinping did not attend the ASEAN Summit, though he and Philippine President Ferdinand Marcos Jr. later met briefly at the APEC Summit in South Korea. 

There, Marcos — who is preparing to host the ASEAN Summit next year — congratulated Xi on receiving the torch to host the next APEC Summit.

The remarks came during a stop at Yokosuka Naval Base as part of Trump’s ongoing Asia tour. Earlier in the day, he held bilateral talks with Japanese Prime Minister Sanae Takaichi, focusing on regional security, defence cooperation, and trade ties.

The visit to Japan follows Trump’s attendance at the ASEAN Summit in Kuala Lumpur over the weekend. The president is expected to continue his trip with a visit to South Korea for the Asia-Pacific Economic Cooperation (APEC) summit, where he is scheduled to meet Chinese President Xi Jinping in what is anticipated to be one of the most closely watched encounters of his tour.