Haze winners and losers: Healthcare gains as airlines, tourism feel the heat
KUALA LUMPUR: The worsening haze is beginning to leave its mark on Malaysian firms, creating winners and losers as deteriorating air quality affects consumer behaviour, travel and business operations.
The worsening haze in Malaysia is creating winners and losers among firms, with healthcare emerging as the clear beneficiary, according to Hong Leong Investment Bank (HLIB) analysts. Deteriorating air quality is leading to increased patient volumes, particularly for respiratory issues, as seen in recent data from the Health Ministry.
Asthma cases in affected states like Sarawak, Kedah, and Perak surged 259% to 219 from 61 within a week, while upper respiratory tract infection cases more than doubled to 3,674 from 1,637 – a 124% increase. KPJ Healthcare Bhd, with hospitals in Sarawak, could benefit from the rise in respiratory and outpatient demand. However, the earnings boost from haze-related cases is expected to be modest due to the low revenue intensity.
Air purifier demand may also see a slight uptick as awareness of indoor air pollution grows. On the losing side, airlines face operational and demand risks, while tourism and solar energy sectors could suffer due to reduced visibility and sunlight. Airlines like AirAsia may experience delays, cancellations, and cancellations of flights and outdoor attractions, leading to booking cancellations and closures.
While solar power producers may experience a minor decline in electricity sales due to reduced sunlight, the impact is expected to remain limited for now. Overall, the haze could have a significant economic impact, affecting agriculture and other sectors.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
