HAZE could cost Malaysia up to RM1 billion in gross domestic product (GDP) every month, as reduced outdoor activity and weaker consumer sentiment threaten to hit spending and business activity, according to MARC Ratings chief economist Dr Ray Choy.
Choy said the economic impact of haze needed greater attention because its consequences extended beyond public health, potentially curbing consumption and slowing economic activity.
“Current estimates suggest Malaysia could lose up to RM1 billion in gross domestic product (GDP) each month due to haze, following a reduction in outdoor activities or weaker consumer sentiment,” he said.
The potential losses underscore how recurring haze can weigh on economic growth, with reduced outdoor activities and more cautious consumer behaviour affecting sectors that depend on public mobility and discretionary spending.
Choy said Asian countries should continue strengthening cross-border haze management to limit the damage to economies and public well-being.
He added that Malaysia was expected to maintain cooperation with Singapore on the issue, particularly as Singapore prepares to assume the ASEAN chairmanship in 2027.
Reducing haze-related economic losses could also help support Malaysia’s GDP growth, he added. -October 18, 2026