Haze in 2026 estimated to cost Singapore $2.32 billion, up 4% from 2015: Experts

The health burden, comprising not just treatment bills, but also the value of reducing the risk of illness and premature death, was higher in 2026 than in 2015.

Tourism losses – both direct and additional business losses – were also higher in 2026 than 11 years ago, taking into consideration arrivals as well as spending data.

Disruption also shows up in lost time due to illness, whether for work or non-work activities. The 2026 cost was lower than in 2015, as fewer hazy days and lower pollution outweighed higher earnings and population growth.

Another cost component considered was protection, such as masks, which fell from 2015 levels. Household growth was offset by the shorter haze duration.

Also accounted for in the calculations was well-being, taking into consideration people’s willingness to pay for cleaner air.

Complementary approaches

Measuring haze losses should guide action, Quah and Or said, adding that understanding who bears the cost can help Singapore target protection and plan adaptations.

The data can also be used to pursue cost-sharing with Indonesia and other affected countries to prevent burning.

While the law can assist in preventing fires by changing what businesses stand to lose, the professors also suggested using a complementary “victim-pays” approach, where affected countries help finance prevention by making alternatives to burning more affordable.

“If supporting fire-free practices costs less than the damage avoided, contributing can leave these countries better off,” they said.

But they also acknowledged that this raises concerns about fairness, and that while public money should fund measurable reductions in fire risk, companies responsible should still be held accountable.

“Each proposal still requires a thorough cost-benefit analysis,” they said, noting that measuring haze losses provides a starting point for decision-making.

“A $2.32 billion haze bill does not automatically justify a $2.32 billion prevention budget,” Quah and Or added, suggesting phased funding based on results.

“Measuring haze damage helps Singapore decide where action could make the greatest difference.” THE BUSINESS TIMES