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KUALA LUMPUR, July 28, 2006 (AFP) - The Philippines on Friday assumed ASEAN's rotating leadership, saying it would put the search for alternative energy sources and the fight against terrorism among its priorities. Philippines Foreign Secretary Alberto Romulo took over the chair of the Association of Southeast Asian Nations (ASEAN) standing committee from the current leader, Malaysian Foreign Minister Syed Hamid Albar, at the close of this year's annual meetings. "Recognising the great impact of rising oil prices to our objective of economic integration, we aim to enhance energy cooperation, tapping alternative sources of energy and promoting efficiency in the sector," Romulo said. He said Manila planned to convene a leaders' meeting to tackle energy security. Most ASEAN countries import their oil needs and record high oil prices are likely to cut economic growth if they remain at current levels for a longer period, according to analysts. Oil prices were near 75 dollars a barrel on Friday after touching record peaks of above 78 dollars recently. There have been proposals to increasingly source fuel from coconut, sugarcane as well as to tap wind, solar and hydro-electric power. Romulo also said the threat of terrorism "remains a major challenge to ASEAN security" and Manila would push the 10-nation bloc to intensify cooperation on counter-terrorism. The Philippines was supposed to take over ASEAN only in 2007 but Myanmar last year passed up its chance for the alphabetically revolving chair due to pressure from the international community over democratic reforms in the military-ruled country. As chair of ASEAN, the Philippines will set the agenda and host a series of meetings, including a summit of ASEAN leaders as well as leaders from the 16-nation East Asia Summit in December in the central island of Cebu. It will also host Asia's top security gathering, the ASEAN Regional Forum, in July 2007 that will include the US secretary of state and the foreign ministers of China, Japan, India and Russia. Singapore takes over from the Philippines next year. mba/sls/mtp