Marshall Islands declared a state of economic emergency amid global criss

By Mar-Vic Cagurangan

Marshall Islands President Hilda Heine has declared a 90-day state of economic emergency in response to the ongoing conflict in the Middle East, which has driven up global fuel costs, affecting local consumer prices.

In her executive order signed March 26, Heine noted that the Marshall

Islands relies heavily on imported goods, including food, fuel, building materials and other basic needs.

The directive also ordered government agencies to implement strict energy

conservation measures, cut fuel expenditures and limit the use of government

vehicles.

The president also ordered a moratorium on salary increments, government hiring and the procurement of new vehicles.

"The livelihoods of the people of the Marshall Islands are at risk and immediate action is required to mitigate the impending threat of negative economic impacts," the executive order reads.

Heine issued the emergency declaration on behalf of her Cabinet, which is authorized under the Disaster Risk Management Act 2023 to exercise emergency powers.

During the state of emergency, the Cabinet is authorized to suspend any rules and regulations that might hinder any necessary action in response to the impact of the global crisis.

The president's office said the government will continue to monitor developments in the Middle East and "take necessary actions to reduce economic hardship and support the people during this time.

The Marshall Islands has a population of approximately 42,418. Its $291 million economy is primarily supported by U.S. grants under the Compact of Free Association, which account for 60 percent of the national government's budget. Its main industries are copra production, fisheries, and the small service sector.

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During her March 15 meeting with Interior Secretary Doug Burgum in Tokyo, Heine highlighted the importance of energy security for the Marshall Islands, emphasizing its role in economic resilience and regional stability.

Heine and Burgum met on the margins of the Indo-Pacific Energy Security Ministerial and Business Forum.

Heine expressed interest in strengthening cooperation with Washington on energy diversification, including renewable energy and potential participation in regional energy supply chains.

The president also proposed exploring opportunities related to liquefied natural gas as part of a broader energy mix.

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