Malaysia’s latest haze cost RM8b in welfare losses, may have led to 1,700 deaths, report finds

KUALA LUMPUR, Oct 29 — A report commissioned by the Federation of Malaysian Manufacturers (FMM) estimates Malaysia's recent haze episode resulted in RM8 billion in welfare losses. Short-term exposure to fine particles from fires may have led to approximately 1,700 premature deaths, with health burdens valued between RM3 billion and RM15 billion.

The haze disrupted manufacturing operations, with 81% of 59 impacted sites reporting increased sick leave or health-related absences, while 63% noted school closures affected staff availability. Staff shortages disrupted shifts, production, and deliveries at 37% of impacted sites, leading to a 27% temporary shutdown of at least one operation.

The survey, conducted among 86 FMM member sites, including 81 manufacturers, showed that more than two-thirds reported some operational impact, with 26% describing disruption as moderate or significant. The report emphasizes the need to view haze as a matter beyond environmental concerns, focusing on public health, labour productivity, economic sustainability, and regional competitiveness.