Air pollution has been widely known to have an influence on health of the general population. Air pollution can result from natural causes, human activities and transboundary air pollution. Weather and climate play crucial role in determining the pattern of air quality. In recent years, air pollution and recurrent episodes of haze has become a major concern in Malaysia. Surveillance data on concentrations of main air pollutants such as carbon dioxide, (CO2), Nitrogen Dioxide (NO2), Ozone (O3), sulphur dioxide (SO2) and particulate matter (PM10) were found to be higher during the haze days and this may have an impact on health of the community as reflected by an increase in hospital admissions particularly the respiratory and cardiovascular diseases.

Introduction: The transboundary smoke haze has become a major concern as it had a wide ranging impact in Southeast Asia from the aspect of public health to national economics. This review aims to synthesize available literature in epidemiology, economics and haze related studies to provide essential information for the valuation of health costs associated with haze in Malaysia. Methods: Evidence on health economic impact of haze was gathered by conducting a literature review and collecting information on the health effects of haze and the cost of it as well as the hospitalization cost from medical illnesses and hospital admissions due to haze. Articles were taken from those that were published from 1999 to 2016.Results: The 1997 Asian Haze episode has caused increasing trend of prematurity of mortality and respiratory problems and several series of haze later had caused increased number of hospitalization. The cost impact on hospital admission ranges from MYR1.8 million in 2005 to MYR118.9 million in 2013. During the 1997 haze, the incremental cost of illness (COI) was noted to be MYR 21million and it shot up to MYR 410 million during the 2013 haze. Conclusion: The haze gives a serious health effect to our country and our neighbours. These health effect has caused a significant health economy impact which include rise in hospital admission cost and medication, incremental cost of illness and extend to cost of medical-related leaves taken and lead to loss of income opportunities.