{
  "id": 14665728,
  "title": "Haze clouds economic outlook, RM1bil monthly loss at stake",
  "url": "https://urgent.news/2026/10/15/haze-clouds-economic-outlook-rm1bil-monthly-loss-at-stake",
  "topic": "world",
  "section": "World",
  "published": "2026-10-15T09:26:44.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/10/1556210/haze-clouds-economic-outlook-rm1bil-monthly-loss-stake"
  },
  "original_language": "en",
  "account": "Malaysia risks losing up to RM1 billion each month due to haze, which hinders economic activity and dampens consumer confidence, according to Prof Adjunct Dr Ray Choy, chief economist at MARC Ratings Bhd. Speaking at a webinar on Decoding Budget 2027 – The Economy and What Comes Next, Choy stressed that these economic losses highlight the financial costs of environmental disruptions and the need for stronger fiscal buffers to handle frequent economic shocks. These shocks can stem from geopolitical conflicts, climate disasters, and health crises, which are now being viewed as more common than previously thought. Choy suggested that Malaysia could enhance its fiscal resilience through targeted fuel subsidies, broadening the tax base, and improving public spending efficiency. Currently, operating expenditure makes up about 82% of total government spending, making it difficult to redirect funds during unexpected needs. Choy also noted that rating agencies will continue monitoring efforts to broaden the tax base and improve fiscal flexibility. To manage the fiscal deficit, he suggested that Malaysia could potentially bring it below three percent of GDP, but this would necessitate sustained reforms. Climate-related crises, such as floods, also pose significant risks, underscoring the need for the government to consider their frequency when planning the country's finances. Additionally, rising bond yields and financing costs are challenges that need attention, especially as competition for funds intensifies. The AI sector is consuming a significant portion of available market funding, making financing conditions more challenging. While Malaysia relies mainly on the domestic market for financing, global market developments could still increase bond yields and borrowing costs. Choy emphasized that sectors beyond the digital economy, such as the primary sector, continue to support growth and should not be overlooked, despite their appeal to global investors. Transboundary haze, which affects multiple countries, requires continued regional cooperation, including between Malaysia and Singapore.",
  "summary": "KUALA LUMPUR: Malaysia could lose up to RM1 billion in gross domestic product (GDP) a month as haze curbs outdoor activities and dampens consumer sentiment, disrupting economic activity beyond its immediate impact on air quality.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}