Singapore’s worsening haze threatens business activity, but GDP impact ‘limited’: analysts
Some firms face productivity losses, but others could benefit from higher demand for air purifiers, masks
Singapore's worsening haze is causing concerns for businesses, but analysts predict its impact on the overall economy will be limited, according to recent reports. The prolonged poor air quality could lead to reduced consumer spending and disrupted operations in certain sectors, with some firms facing productivity losses and others benefiting from increased demand for air purifiers and masks.
However, the economic fallout is expected to be uneven, with contact-sensitive sectors making up only a small portion of Singapore's gross domestic product. As long as the haze episode remains short-lived, the overall impact is likely to remain modest. Long-term poor air quality could weigh on services activity, labor productivity, and business operating costs.
Construction and transport sectors may need to adjust work arrangements to limit employee exposure to poor air quality, while consumer-facing sectors such as retail, hotels, and F&B could suffer due to weaker tourist arrivals. Despite the potential challenges, businesses supplying air-purifying products have seen a surge in demand, with sales of air purifiers tripling compared to previous weeks.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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