Singapore will use “every legal and regulatory lever” against companies linked to the haze if they refuse to cooperate, including pressure on their profits, financing and standing with investors, Senior Minister K Shanmugam told reporters on 19 October in a doorstop at Woodlands Checkpoint. Laws could be amended, or new ones introduced, “on an urgent basis” if needed.
The warning applies whether or not a company has a presence in Singapore. The Government will look past individual concession holders to the corporate groups and people who may ultimately control them, said Mr Shanmugam, who chairs the Homefront Crisis Ministerial Committee.
“They should also be under no illusion that they can simply wait for the haze to clear, and return to business as usual. We will pursue this matter for as long as it takes,” he said.
Ten firms served notices
The National Environment Agency has now issued preventive measure notices to 10 companies in Indonesia under the Transboundary Haze Pollution Act. Seven received them on 16 October and three more, PT Buana Megatama Jaya, PT Mananjung Hayak and PT Baratama Putra Perkasa, on 19 October over fires in Kalimantan.
The notices require the companies to fight the fires, stop the burning on their land and submit plans to put the fires out and prevent them from recurring.
Four of the 10 have been identified as suppliers of wood fibre to Asia Pulp and Paper (APP): Bumi Andalas Permai, Bumi Mekar Hijau, SBA Wood Industries and Buana Megatama Jaya. All but Buana Megatama Jaya were also served notices during the 2015 haze, and those cases remain open.
SGX questions seven listed agri firms
Singapore Exchange has sent queries to seven agricultural companies listed in Singapore about their operations and possible links to the haze. They are Golden Agri-Resources, Bumitama Agri, First Resources, Wilmar, Kencana Agri, Indofood Agri and TSH Resources.
Mr Shanmugam singled out First Resources and Bumitama Agri, along with First Borneo Plantations, as companies associated with some of the fires or smoke-source points. First Resources has issued a statement on its zero-burning policy and firefighting. “Statements, no matter how well drafted, are not good enough. Show us the evidence,” he said.
Banks that lend to these companies have sent them their own questions, and the Monetary Authority of Singapore supervises how those banks manage the risk. Agencies will also examine whether any of the companies receive government grants or incentives here, since those benefits depend on lawful and responsible conduct.
APP’s green label restricted
The Singapore Environment Council (SEC) has placed temporary restrictions on APP’s enhanced Singapore Green Labelling Scheme (SGLS+) certification after three of its suppliers’ concessions in South Sumatra were linked to the fires. APP, whose brands include Paseo and Nice, must now file daily reports on hotspots, fire prevention and suppression at those concessions.
If the reports do not show the measures are working, SEC may suspend the certificate, and the SGLS+ logo would have to come off the products concerned. On 20 October, APP stated that the restriction is not a suspension and that no timeline has been set for it to be lifted, CNA reported. FairPrice, which pulled APP products in 2015, is closely monitoring developments, CNA reported.
Haze may drift back from Kalimantan
The accountability push comes as the air is set to worsen again. Tuesday’s 24-hour PSI was 85 to 140 at 7pm, Moderate to Unhealthy.
NEA forecasts a 24-hour PSI of 110 to 180, in the Unhealthy range, for Wednesday (21 October). Some showers are expected, but with winds blowing from the east-southeast to southeast and dry conditions likely to persist over southern Kalimantan for the next few days, smoke haze from fires there may be carried towards Singapore.
