Key Takeaways
- • All 10 Singapore-based companies issued notices under Singapore's Transboundary Haze Pollution Act (THPA) by the National Environment Agency (NEA) have now acknowledged receiving them, with most saying they will cooperate with authorities.
- • This is the first time NEA has issued such notices to Singapore-based companies since the THPA came into force in September 2014, and the law allows action against companies causing or contributing to haze even when activities occur overseas.
- • The notices, issued under Section 10 of the THPA, require disclosure of cross-border corporate links, concession land locations, and fire prevention and firefighting measures during the current dry season.
- • Penalties for causing or contributing to haze can reach S$100,000 per day, capped at S$2 million, while failure to comply with a notice without reasonable excuse carries fines up to S$5,000 and/or up to one month's jail.
- • The affected group includes major palm oil and pulp and paper producers such as Asia Pulp & Paper, Golden Agri-Resources, Wilmar International, and TSH Resources, all of which maintain they did not cause or contribute to the haze.
Summary
All 10 Singapore-based companies that received notices under Singapore's haze law have acknowledged receipt, according to the source report, with most saying they will cooperate with the authorities. The latest responses came from two subsidiaries of Malaysian plantation group TSH Resources, which said on Monday (Oct 26) that it was reviewing the notices and would engage with the National Environment Agency (NEA). The notices were issued after the companies were asked last Friday to provide information relating to the transboundary haze that has affected Singapore in recent weeks.
The companies include some of the region's largest palm oil and pulp and paper businesses. They include Asia Pulp & Paper (APP), part of Sinar Mas Group; Golden Agri International, a subsidiary of Golden Agri-Resources; Bumitama Agri; First Resources; Indofood Agri Resources, whose parent owns Indomie maker Indofood CBP; Kencana Agri; Wilmar International; and TSH Global Plantation and TSH Oversea. Several have reported fires or hotspots within their Indonesian concession boundaries, but all maintain their operations did not cause or contribute to the haze. Bumitama attributed severe fire conditions to prolonged drought linked to a strong El Nino event, and Wilmar cited similar dry conditions. TSH Resources said 274 hotspots detected within its estate boundaries on Oct 23 were in community enclave areas outside its operational areas.
The Transboundary Haze Pollution Act, in force since September 2014, allows Singapore to take legal action against companies responsible for causing or contributing to haze pollution, even if their activities take place overseas. NEA has asked the companies to submit documents on their associated companies in Singapore and Indonesia, the locations of their land concessions, and details of fire prevention and firefighting efforts during the current dry season. The source notes that issuing a notice does not in itself mean a company has been found responsible. The Singapore Exchange said it expected listed companies to comply with the notices and disclose material information to ensure orderly trading. Separately, the Singapore Environment Council placed APP under temporary green certification restrictions on Oct 18 after three of its wood-fibre suppliers were linked to fires in Indonesia.
Responses varied in detail. APP said it was cooperating and would respond on behalf of the two entities that received notices. Golden Agri-Resources said on Oct 24 that Golden Agri International would cooperate. Bumitama said on Oct 24 it would provide the requested documents. First Resources said it was reviewing the notice. Indofood Agri Resources said it would make further announcements as material developments arise. Kencana Agri said it would cooperate fully with NEA, and Wilmar said on Oct 23 that work was in progress to comply. TSH Resources said its subsidiaries would engage with the agency accordingly.
The companies include some of the region's largest palm oil and pulp and paper businesses. They include Asia Pulp & Paper (APP), part of Sinar Mas Group; Golden Agri International, a subsidiary of Golden Agri-Resources; Bumitama Agri; First Resources; Indofood Agri Resources, whose parent owns Indomie maker Indofood CBP; Kencana Agri; Wilmar International; and TSH Global Plantation and TSH Oversea. Several have reported fires or hotspots within their Indonesian concession boundaries, but all maintain their operations did not cause or contribute to the haze. Bumitama attributed severe fire conditions to prolonged drought linked to a strong El Nino event, and Wilmar cited similar dry conditions. TSH Resources said 274 hotspots detected within its estate boundaries on Oct 23 were in community enclave areas outside its operational areas.
The Transboundary Haze Pollution Act, in force since September 2014, allows Singapore to take legal action against companies responsible for causing or contributing to haze pollution, even if their activities take place overseas. NEA has asked the companies to submit documents on their associated companies in Singapore and Indonesia, the locations of their land concessions, and details of fire prevention and firefighting efforts during the current dry season. The source notes that issuing a notice does not in itself mean a company has been found responsible. The Singapore Exchange said it expected listed companies to comply with the notices and disclose material information to ensure orderly trading. Separately, the Singapore Environment Council placed APP under temporary green certification restrictions on Oct 18 after three of its wood-fibre suppliers were linked to fires in Indonesia.
Responses varied in detail. APP said it was cooperating and would respond on behalf of the two entities that received notices. Golden Agri-Resources said on Oct 24 that Golden Agri International would cooperate. Bumitama said on Oct 24 it would provide the requested documents. First Resources said it was reviewing the notice. Indofood Agri Resources said it would make further announcements as material developments arise. Kencana Agri said it would cooperate fully with NEA, and Wilmar said on Oct 23 that work was in progress to comply. TSH Resources said its subsidiaries would engage with the agency accordingly.
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