South-East Asia has suffered for years from annual bouts of smog caused by slash-and-burn practices in Indonesia's Sumatra and Kalimantan islands, but governments in the region have failed to address the problem.
Air quality dipped to "unhealthy levels" in Malaysia and Singapore this week.
Malaysia's education ministry has ordered school closures in Kuala Lumpur, three adjacent states and the nearby administrative capital of Putrajaya.
On Monday the Indonesian government declared a state of emergency in Sumatra's Riau province.
The PSI air quality index hit a "dangerous" high of 984 in the provincial capital this week, according to Indonesia's national disaster management agency.
Malaysian authorities in several areas have distributed free face masks, while the marine and aviation sectors have been advised to go on high alert.
Tens of thousands of people in smoke-choked regions of Sumatra and Borneo have fallen ill, while air travel there has also been disrupted due to poor visibility.
The smog is usually caused by palm oil and pulp and paper companies, some of which are listed in Singapore.
The firms blame small-holders for the fires but have been criticised by green groups for not doing enough to stop the haze or rampant deforestation in Indonesia.
Singapore's environment minister said Indonesia had agreed to share names of companies causing the fires once the information had been verified.
Indonesian forestry and environment minister Siti Nurbaya Bakar said authorities were investigating 10 firms, which could face sanctions if found violating the law.
Disaster officials said Indonesia had deployed hundreds of military troops to fight the fires and would send in additional helicopters to water-bomb the affected areas if necessary.
AFP/Reuters
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