Observers say that while the direct impact is currently still manageable, companies should adopt the appropriate risk management and business contingency plans.
Nicole Tan Channel NewsAsia 15 Sep 15;
SINGAPORE: With the worsening haze situation, the drop in air quality is expected to affect businesses. While industry watchers have said the disruption is likely to be manageable, they also urge that appropriate risk management and business contingency plans be put in place.
Business activity in the construction industry, as well as F&B and retail sectors, is expected to slow down over the next few weeks as the haze situation deteriorates. Some firms are already taking measures to keep employees indoors.
Still, industry watchers said the haze is not likely to hurt businesses significantly.
Mr Kurt Wee, president of the Association of Small and Medium Enterprises (ASME), said: “This would be something that is disruptive for businesses. The Government is also addressing with the Indonesian government how Singapore can help, so everyone is quite mindful about how we can prevent it from escalating.
“But in the event that it escalates and spikes, I believe it would not last for a prolonged period of time. It might hit us for a few days or even a week, where people have to be indoors or receive instructions to stay at home. Some would still be able to work from home. There will be those who will not be able to carry on their work, kids will not go to school and people will not go out much.
"So you might have a few days of quite serious disruption, but relative to what we have been through - SARS, bird flu and some of the much bigger situations we have dealt with - this is something we are quite capable of handling."
While the direct impact is currently still manageable, observers said firms should have preemptive risk management measures in place to avoid a knee-jerk approach. In particular, they caution firms of potential disruption to their value chain, which depends on goods and services delivered by other business partners.
Industry watchers said firms need to be prepared to address supply chain interruptions.
Said Mr Lim Sek Seong, vice president & BCM Service Leader (Asia) at Marsh Risk Consulting: "It is very important to start the dialogue. What if the haze really disrupts the operation? How will it affect you? Then the next thing is, if I can't use my people to deliver, can I work with another business partner or a competitor to deliver the service.
"Of course my people will still be overseeing it. It is important that they start the conversation now rather than later, and once the arrangement is put in place, they should have all these documented.
“The next thing is, before the next incident like the haze happens again, they need to rehearse. Because if we don't rehearse, how do we know whether the measures in place are effective? The idea is to avoid a knee-jerk reaction. When the thing happens you react. Typically yes you can avoid the service failure. But if you have rehearsed it, you could have done it better."
Contingency plans aside, observers said businesses should also consider enhancing their insurance coverage to mitigate against the risk of any business disruption.
- CNA/ek
Businesses suffer as haze keeps customers away
MARISSA YEO Today Online 16 Sep 15;
SINGAPORE — Businesses islandwide are taking a hit as a result of the persistent haze putting a dampener on customers’ desire to head outdoors.
And bracing themselves for a prolonged slump are those that were anticipating a bump from Formula 1 week — one of the biggest weeks in the year for many businesses. Some of these firms have already seen takings go down.
Singapore River One, a non-profit that manages businesses at Clarke Quay, Boat Quay and Robertson Quay, said establishments with outdoor dining have been affected. Among them is Dallas Restaurant & Bar, which saw the number of customers nearly halved. Restaurant supervisor Nikkie Caube said: “Usually we have an average of 200 to 250 customers in a day. However (due to the haze), we have only 100 to 150 customers daily.”
Another restaurant, Pasta Fresca Da Salvatore at Boat Quay, saw only one table occupied yesterday (Sept 14), compared with the usual 10 to 12 tables occupied daily. Ms Eleonora Caroppo, public relations manager of Pasta Fresca, added: “During this time, everyone wants to sit inside and we don’t have enough space to (accommodate) all the customers indoors, so we had to reject several customers on some days.”
The Penny Black Victorian London Pub saw sales go down by 20 per cent, and had been counting on the F1 season to boost their sales. Its customer service manager Declan O’Donnell said: “Tourists will usually pass by our pub while walking down the river (during) the F1 period and some make a pit-stop for drinks here.”
Even coffeeshops have not been spared, with some reporting declining sales. Mr Steven Chan, 55, supervisor of Siang Ho Coffee Shop in the Chinatown area, said he was closing an hour earlier at 7pm because of the haze and drop in patrons. He estimated business was down by about 10 per cent. Mr Tian Titao, 47, owner of Ampang QQ Fishball Noodles, also in Chinatown, said he noticed more takeaways. Business was also down about 10 per cent.
Elsewhere, restaurants boasting cityscape views said reservations remain steady, but have plans in the wings should the situation worsen. At Equinox Restaurant, which is located on the 70th floor of Swissôtel The Stamford, restaurant reservations over the race weekend have not been affected. But noting that haze conditions may vary in the upcoming days, the management said it would take into consideration guidelines set by the National Environment Agency.
1-Altitude, located on level 63 of OUB Centre, said it has prepared two other indoor venues at Altimate and Stellar in case conditions worsen.
A spokesperson for Marina Bay Sands — which has several rooftop establishments — said health advisories for guests have been placed at ticketing booths, and those who require a mask before they venture outdoors can approach staff for assistance.
Meanwhile, Resorts World Sentosa (RWS) and Sentosa Development Cooperation have prepared contingency plans. RWS said it has advised guests and staff to stay hydrated and take regular rest periods. It is prepared to adjust outdoor shows and entertainment schedules, and has placed trained medical personnel on standby.
Sentosa Development Cooperation said it has issued N95 masks and eye drops to staff working outdoors and rostered more breaks for them. If the PSI exceeds 300, or if the experience of the attraction is compromised, operations of some outdoor attractions may be suspended, it said. ADDITIONAL REPORTING BY STACEY LIM
Haze a dampener for business but toll minimal so far
Marissa Lee and Jacqueline Woo, Straits Times AsiaOne 15 Sep 15;
The return of the annual haze has so far taken only a minimal toll on business here, though some outdoor tourism outfits are suffering.
Iconic venues such as the Singapore Flyer were noticeably quieter this weekend as the Singapore skyline remained for the most part shrouded in haze.
"Our sales from walk-ins have been most negatively affected by the haze," said Ms Veronique Ye, director of marketing and sales at the Singapore Flyer.
"Until now, we have not received any cancellation of flights from tour groups, (but) the haze situation is quite unpredictable, so we do allow passengers to reschedule their flights."
The haze has also been a dampener for Singapore's many rooftop bars and alfresco eateries as more customers opt to stay indoors. But Ms Low Seow Yee, music and marketing manager at Timbre, which owns several alfresco dining establishments, remains upbeat.
"Given that the haze situation has not been as bad as last year, customers are still coming out to dine at our venues and attend gigs," she said. She noted that it is only the start of the haze season, but so far the group has not seen a marked increase in cancellations.
Most firms have come to accept the haze as an annual phenomenon, to one degree or another, and, with the proper protocols in place, they can carry on with business as usual.
Work has not stopped at the construction sites of developer Koh Brothers, said group public relations manager David Tay. He said the firm had established a haze management system two years back, when Pollutant Standards Index (PSI) levels rocketed to about 400.
As at 6pm yesterday, the 24-hour PSI was between 119 and 147. The unhealthy range is 101 to 200.
Spokesmen for rigbuilders Keppel Corporation and Sembcorp Marine said operations at their shipyards have yet to be affected as the firms have laid out guidelines on the measures to take according to the PSI level. Some 14,000 of Keppel's staff work at its yards, with a significant number involved in operations outdoors.
