Economic Cost of Haze Occurrence in June 2013

Mr R Dhinakaran asked the Prime Minister (a) whether the Government has calculated an estimated economic cost to Singapore and companies here due to the haze episode in June 2013; and (b) whether there was a loss of productivity due to employees being unable to perform their duties effectively.

As the haze affects all of Singapore, there will be an adverse economic impact. Studies have shown that the tourism sector, and other sectors which rely on outdoor activities, are the most affected by haze.

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When the period of haze lasted as long as it did in 1997, the costs due to forgone revenue and loss of productivity were estimated at up to S$318.6 million1. In this recent episode, the actual number of days when the PSI level was unhealthy was limited as Singapore alerted the Indonesians to the problem as soon as we experienced hazy conditions. The actions of the Indonesians and favourable winds reduced the potential economic impact of the haze. As a result, absenteeism rates did not rise significantly during the week of the haze, and businesses did not experience a sharp drop in activity. However, our polyclinics did see an increase in visits for haze-related conditions2.