Haze Costing Malaysia RM20 Million to RM50 Million a Day, Experts Warn

The prolonged transboundary haze is costing Malaysia between RM20 million and RM50 million a day in economic disruption, higher healthcare bills and lost worker productivity, according to experts. 

Sunway University economics professor Dr Yeah Kim Leng said the conservative estimate compounds quickly, and that the actual toll could balloon to between RM600 million and RM1.5 billion a month, The Star reported.

“Haze Is Just as Much an Economic Problem”: Public Health Specialist

Yeah identified tourism, aviation and agriculture as the most vulnerable sectors. Air pollution can cut tourist arrivals by up to 8%, with GDP losses of up to RM1.5 billion. 

Johor vegetable farmers report production declines, fruit yields have halved, and palm oil faces a lagged impact of six to 12 months. Poor visibility also delays freight, stalls construction sites and suppresses retail footfall.

Universiti Sains Islam Malaysia public health medicine specialist Dr Mohd Hafiz Jaafar said medical costs capture only a fraction of the damage. 

The national cost of illness rose from about RM21 million during the 1997 haze to RM410 million in 2013, and that counts only respiratory illness, not the harm to the heart and blood vessels. Employers also bear hidden costs from absent staff and workers who turn up but cannot perform properly.

Hafiz urged cross-border cooperation with Indonesia to put out fires at the source, saying prevention is cheaper than paying for the same crisis every few years.