Face Masks, Anyone? Singapore Struggles With Haze

On Thursday reports emerged that the Ministry of Manpower is considering issuing a stop-work order if the haze situation worsens severely and is mulling the closure of childcare centers and schools.

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CNBC understands a number of corporations, including technology firm Blackberry, are sending daily emails to employees updating them on the situation and giving them the option to work at home.

“I used to live here and it was never this bad. I don’t think it would stop me coming back completely but I would definitely time my visit to avoid this time of year in future, while in the past I wouldn’t have even thought about it,” said McDonald, adding she would think carefully before planning her next trip to Singapore.

Mizuho Corporate Bank’s Varathan said office closures were unlikely as air conditioning systems mean office workers are relatively safe. However, industries where the majority of work is conducted outside could suffer a more severe impact, he said.

“We will see a slowdown in manufacturing, in port activity, rig-building, ship building, marine and offshore engineering activity,” he said.

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On a broader scale, a severe worsening of the haze situation could go so far as to damage trade relations between Singapore and Indonesia, said Varathan, following reports on Thursday that the Singapore government had sent a delegation to Jakarta to discuss the deteriorating smog situation.

On the flipside, certain pockets of the economy are receiving a boost from the haze.

Anecdotal evidence suggests taxi firms are experiencing a spike in advance bookings as customers take steps to avoid stepping outside to hail a cab.

Sales of face masks and air purifiers are seeing brisk sales with a number of retailers such as drug store Watsons selling out of face masks due to strong demand.

Singaporean resident Vipin Ghelani said he was forced to go to six different stores in search of face masks on Wednesday.

“I went to five or six different places, including Guardian and Watsons (drug stores) and they were sold out everywhere,” he said.

—By CNBC’s Katie Holliday: Follow her on Twitter @hollidaykatie

—Additional reporting by CNBC’s Sri Jegarajah

Correction: An earlier version of this story had Singapore’s economy grew 1.8 percent in the fourth quarter. The time period is incorrect and should be the first quarter.

Face Masks, Anyone? Singapore Struggles With Haze