KOTA SAMARAHAN: A prolonged haze could impose significant hidden costs on employers as workers’ productivity declines even when they remain at work.
Universiti Teknologi MARA (UiTM) Sarawak rector Professor Dr Firdaus Abdullah said employees exposed to unhealthy air face health risks, particularly respiratory problems, which could result in absenteeism or affect their ability to perform at optimum levels.
However, the economic impact does not necessarily arise only when workers take sick leave.
“There are situations where workers still report for duty, but their productivity declines because they are not in good physical condition.
“This is a form of hidden cost. It may not be very apparent initially, but it can become significant if the haze persists or recurs,” he said in a interview with Sarawak Tribune.
Dr Firdaus said the impact on employers extended beyond healthcare and treatment costs to include lost productivity, the need for temporary replacements, delays in completing tasks and operational disruptions.
He said such productivity losses might not be immediately reflected in an organisation’s daily financial statements, but could accumulate when similar disruptions occur repeatedly.
“When workers are unable to report for duty because of health problems, organisations lose working days. When outdoor activities have to be suspended, certain tasks may be delayed.
“When operations have to be adjusted, additional time and resources may also be required,” he said.
Dr Firdaus added that the economic impact of haze could extend beyond individual organisations, as disruptions in one sector could affect others.
Sectors heavily dependent on outdoor activities, including construction, agriculture and logistics, are among the most vulnerable when air quality deteriorates.
Tourism, services and event organisers could also be affected as people reduce outdoor activities over health concerns.
He said the cancellation or postponement of events could affect not only organisers, but also hotels, restaurants, transport operators, small traders, vendors and part-time workers.
“Haze should therefore not be viewed solely as a public health issue, but as a risk with implications for human resource management and an organisation’s economic performance,” he said.
Dr Firdaus said employers should look beyond the number of workers taking sick leave or operations forced to stop, and also consider productivity levels, task delays and their ability to maintain operations amid prolonged uncertainty.
“The longer a disruption continues, the greater the likelihood that costs which initially appear small will become a more significant economic burden,” he added.
