Yes!
We would've faced a bigger economic impact crisis than 16 years ago. The haze has definitely affected the restaurants and shopping malls’ business since the haze was very serious and everyone was not recommended to go outdoors. It would also create a negative impression and stop the tourist inflows, as tourism make up 6.4 percent of Malaysia’s economy.
Due to the air pollution level increase, people are rushing to buy the haze-related product like face masks, eye drops and air purifiers. Meanwhile, it causes the supply for the product decrease. When the supply decreases, it will cause the price of these product to increase. According to the law of supply, firms will supply more when the price is high. Therefore, the firm will start to produce many of these products.
When the haze was disappearing from the skies of Malaysia and Singapore, the sales have fallen by 50 percent. Many shop stop to import the new stocks. Based on reports, when the haze level was serious, it can sell hundreds of boxes daily, but now it has dropped to 10 to 15 boxes only. When at the height of the haze, many retailers who used to set the price up to RM10 each now dropped to RM 0.50 each.
In conclusion, haze affected the demand and supply of Malaysia and Singapore.
Source: http://www.reuters.com/article/2013/06/24/us-southeastasia-haze-impact-idUSBRE95N0BS20130624?irpc=932
Written by: Jo-Ann Luei Sook Qi 0310206
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