In brief
According to a report by the Federation of Malaysian Manufacturers, the 2026 haze caused roughly 1,700 deaths and an estimated 8 billion ringgit (~US$2 billion) in welfare losses. Most fatalities were attributed to transboundary smoke from fires outside Malaysia, with 69 % of surveyed firms reporting operational impacts. The haze had significant health and economic repercussions, highlighting the need for cross‑border fire‑control measures.
In a study released on Friday, the Federation of Malaysian Manufacturers (FMM) estimated that the 2026 haze that blanketed much of the country between July 1 and October 22 killed approximately 1,700 people and delivered about 8 billion ringgit (roughly US$2 billion) in welfare losses.
The report, commissioned by the FMM, places the death toll within a range of 1,300 to 2,300, noting that about 1,600 deaths were directly linked to transboundary smoke from fires outside Malaysia’s borders. If the fine particulate matter produced by these fires is assumed to be no more toxic than other fine particles, the figure drops to an estimated 600 deaths.
Using standard benefit‑transfer methods, the FMM calculated the welfare losses associated with the deaths at 8 billion ringgit, with a wide range of 3 billion to 15 billion ringgit reflecting uncertainty in the assessment.
Beyond the human toll, the haze also rattled the nation’s manufacturing sector. In a survey of 86 FMM member sites, including 81 manufacturers, 69 percent reported some operational impact, while 26 percent reported moderate to significant disruption.
Staff absenteeism emerged as the principal cause of the operational interruptions, with many workers forced to stay home due to respiratory distress and other health complaints exacerbated by the smoke.
Nearly two‑thirds of the firms indicated that they had already been affected during the months of August and September, with some experiencing lingering impacts into October as haze levels remained elevated.
The report notes that the haze was largely a product of transboundary forest fires, mainly in neighboring Indonesia, that sparked the release of fine particulate matter into the air over Malaysian territory.
Health experts and environmental scientists have long warned that such episodes amplify the vulnerability of populations already strained by climate change, illustrating the clear link between unchecked fire management and public health crises.
The findings underscore the economic cost of environmental degradation, showing how a single environmental event can ripple through communities, industries, and national welfare.
While the report stops short of prescribing specific policy measures, its quantitative evidence is intended to inform policymakers, manufacturers, and civil society groups as they coordinate responses to future haze episodes and contemplate cross‑border fire‑control initiatives.
