# Singapore Haze Economic Impact Reaches $2.32 Billion in 2026 Economic damages from haze exceed 2015 levels despite fewer recorded pollution days. - **Source:** [The Straits Times – Singapore](https://www.straitstimes.com/singapore) - **Published:** 2026-11-08 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/41e12b9a-20c7-47dd-867b-728a61a111fd ## Rising Economic Burden Singapore faces a $2.32 billion economic hit from the 2026 haze, marking a 4% increase over 2015 figures. This preliminary estimate, calculated by researchers from NTU and SUSS, highlights the growing financial vulnerability of the city-state to transboundary air pollution, even when the total number of hazy days remains relatively lower. ## Factors Driving Costs The surge in costs is attributed to a larger population, increased visitor spending, and higher average incomes compared to 2015. Updated health data and revised assumptions regarding the value of reducing illness and premature death further inflated the total bill, despite a lower average Pollutant Standards Index reading during the event. ## Health and Tourism Impact Health-related burdens, including medical treatment bills and the economic value of preventing premature mortality, were significantly higher in 2026. Tourism also suffered greater losses, as both direct expenditures and secondary business disruptions increased. These sectors remain the primary drivers of the total economic damage recorded during the recent haze episode. ## Mitigation and Protection Costs While health and tourism costs rose, expenses related to personal protection, such as purchasing masks, actually declined compared to 2015. This reduction occurred because the shorter duration of the haze offset the impact of household growth. Additionally, lost time due to illness was lower, reflecting the shorter overall period of poor air. ## Framework for Decision Making The 2026 estimate utilizes a peer-reviewed cost framework originally established in 2015. By quantifying the financial impact, researchers aim to provide a data-driven foundation for government policy. This methodology incorporates well-being metrics, specifically measuring the public's willingness to pay for cleaner air, to better understand the total societal cost involved. ## Regional Cooperation Strategies Experts suggest that these figures should facilitate cost-sharing discussions with Indonesia and other affected nations. By framing the issue through economic data, Singapore can advocate for regional fire prevention initiatives. The goal is to make alternatives to slash-and-burn agriculture more affordable, potentially reducing the frequency of fires across the entire region. ## Victim-Pays Approach Researchers propose a complementary victim-pays approach to incentivize fire-free practices. If the cost of supporting sustainable alternatives is lower than the damage avoided, affected countries could financially contribute to prevention. However, this strategy raises complex questions regarding fairness, necessitating that companies responsible for the fires remain held strictly accountable for damages. ## Strategic Policy Implementation A $2.32 billion damage bill does not automatically justify an equivalent prevention budget. Experts emphasize that policymakers must conduct thorough cost-benefit analyses before allocating funds. Future spending should be phased and results-oriented, ensuring that investments in prevention are targeted where they can make the most significant difference for public health. ## Sources covering this story - https://www.straitstimes.com/singapore/haze-in-2026-estimated-to-cost-singapore-2-32-billion-up-4-from-2015-experts — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._