Haze in 2026 estimated to cost Singapore $2.32 billion, up 4% from 2015: Experts
The rise is attributed to factors including a larger population, and higher incomes and visitor spending.
Singapore's 2026 haze episode, the worst in over a decade, has cost the country's economy S$2.32 billion as of October 31, a 4% increase from the estimated $1.83 billion in 2015, according to preliminary estimates from Nanyang Technological University's Euston Quah and Singapore University of Social Sciences' Eugene Or. The professors argue that the significant economic damage supports the need for prevention alongside stricter penalties.
Building upon a cost framework they developed in 2015, Quah, NTU's Chia Wai Mun, and SUSS' Tan Tsiat Siong estimate the 2026 bill to be higher due to factors such as a larger population, higher incomes, visitor spending, updated health data, and assumptions. Despite fewer hazy days and a lower average Pollutant Standards Index reading, the health burden, tourism losses, and disruption from illness are more severe in 2026 compared to 2015.
The cost of protection, like masks, has decreased, while household growth and well-being considerations also factor into the calculations. Measuring these losses is crucial for informing action, allowing Singapore to identify who bears the cost and potentially engage in cost-sharing with Indonesia and other affected nations to prevent fires.
While laws can prevent fires by changing business risks, the professors propose a "victim-pays" approach, encouraging affected countries to finance prevention by making alternatives to burning more affordable. However, they acknowledge potential fairness concerns, emphasizing that companies responsible should still be held accountable.
Despite the significant haze bill, the professors suggest phased funding based on results and stress that measuring haze damage is essential for determining where action can make the most significant difference.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
