The Singapore Flyer has suspended operations temporarily because of the haze, its appointed recovery firm Ferrier Hodgson said in a statement on Thursday.

This is to protect its employees from record-high pollution levels in Singapore.

The decision was made by the flyer's receivers and managers after the Pollutant Standards Index (PSI) reached a record high of 371 at 1pm on Thursday. The previous record was 266, in 1997.

"The health risks posed by the haze have led us to close the Singapore Flyer for the time being to protect staff members, many of whom work outdoors," said Mr Tim Reid of Ferrier Hodgson. "We will reassess the situation tomorrow morning, and the Flyer will reopen as soon as pollution levels drop to a safe level".

The observation wheel was placed into receivership on May 28 and business has been operating as usual. Ferrier Hodgson added that it will continue to do so once the haze clears.