Singapore food and beverage outlets report business declines of up to 80% amid the haze

On a typically busy Sunday morning at the Jurong West Hawker Centre, the atmosphere was notably subdued. Stall owners reported a significant dip in business, with some experiencing up to an 80% drop in sales compared to the previous weekend. The haze, caused by forest and peatland fires in Indonesia, has led to Singapore being ranked among the world's most polluted cities, as reported by Channel News Asia and The Straits Times.

Businesses that rely heavily on tourists, like Shahi Maharaja Restaurant and Bar owner Sahil SK, have seen a 60% decline in sales, with customers canceling reservations and fewer walk-ins. Honger Bee, a stall owner at Tekka Centre, noted a drop from around 500 daily customers to just 200 due to the persistent haze. Rising operating costs and the reduced need for staff have left her considering closure.

The Restaurant Association of Singapore has warned of potential impacts on staffing availability, outdoor seating capacity, and delivery services due to the haze situation. Economists predict a negative impact on consumer spending and business activity, although the effect is expected to vary across sectors. While consumer-facing sectors like retail and F&B may face challenges, sectors like electronics manufacturing and finance are less directly exposed.

Despite the hardships, some businesses have benefited from the indoor trend, with Xiaomi's air purifier sales increasing by over 19-fold year-on-year and Dyson's models selling out. However, Maybank economist Brian Lee believes the haze will have a limited impact on Singapore's overall economic growth, as sectors sensitive to in-person activity make up only a small portion of the GDP.