Preliminary estimate rises 4% from 2015 as health and tourism losses increase.
Singapore’s 2026 haze episode carried an estimated economic cost of S$2.32 billion as of October 31, showing that even a shorter and less polluted episode than 2015 can impose substantial financial and social costs.
Haze Bill Reaches S$2.32 Billion
A preliminary estimate by Nanyang Technological University Professor Euston Quah and Singapore University of Social Sciences’ Eugene Or puts the cost of the 2026 haze at S$2.32 billion as of October 31. That is about 4% higher than the comparable 2015 figure. Researchers previously estimated the 2015 haze at S$1.83 billion, equivalent to approximately S$2.23 billion when adjusted to September 2026 prices.
Costs Rise Despite Milder Pollution
The higher estimate came despite fewer hazy days and a lower average Pollutant Standards Index reading than in 2015. Quah and Or attributed the increase to Singapore’s larger population, higher incomes, greater visitor spending, and updated health data and assumptions used in the calculations. The findings show that economic exposure can increase even when the physical severity or duration of haze is lower.
Health and Tourism Losses Increase
Health-related costs were higher in 2026, including medical treatment and the estimated value associated with reducing risks of illness and premature death. Tourism losses were also larger than in 2015 when both visitor arrivals and spending were considered, increasing the overall economic burden associated with the haze.
Lost Time and Protection Costs Decline
Not every component increased. Losses associated with time taken away from work and other activities because of illness were lower than in 2015, as fewer haze days and lower pollution outweighed Singapore’s population and income growth. Spending on protective measures such as masks also fell compared with 2015 because the haze episode was shorter, despite growth in the number of households.
Experts Call for Prevention Investment
Quah and Or said measuring the economic damage could help Singapore decide where prevention and adaptation spending would have the greatest impact. They suggested that affected countries could consider helping finance measures that make alternatives to burning more affordable, while stressing that responsible companies should still be held accountable. They also cautioned that a S$2.32 billion loss estimate does not automatically justify spending the same amount on prevention, and that any intervention requires cost-benefit analysis.
The S$2.32 billion estimate illustrates how haze affects far more than air quality, extending into healthcare, tourism, productivity, household spending, and overall well-being. For Singaporeans, the findings provide an economic case for stronger prevention and preparedness. For Indonesians, they highlight the significant cross-border consequences of fires and haze, strengthening the importance of cooperation on fire prevention alongside accountability for parties responsible for environmental damage.
Sources: Straits Times (2026) , Business Times SG (2026)
Keywords: Singapore Haze 2026, Haze Economic Cost, Transboundary Haze, Singapore Tourism, Haze Health Costs, Air Pollution Singapore
