Perceptions about air pollution can affect stocks

THE blanket of choking haze may threaten Singapore again, bringing with it complaints of sore throats, irritated eyes and a surge of social media posts bemoaning official inability to solve what has become a perennial problem.

As PSI levels spike, businesses worry about the impact on the economy - already showing signs of unease before the haze briefly returned recently. Besides impacting the tourism industry, the haze may also delay construction projects, slow factory output, disrupt travel and depress productivity as workers call in sick.

The haze, as is well known, is the result of economic activity - clearing land for agriculture, primarily in Sumatra and Indonesian Borneo. But while farmers may benefit, the economic costs are estimated to run into the hundreds of millions of dollars, while the cost to personal health runs even higher.