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Singapore’s stronger haze law could make non-compliant companies ‘corporate pariahs’

By · Published by Everything Blog

In short

The revised 12-year-old legislation allows the minister for sustainability and the environment to penalize entities that are convicted, under suspicion, or non-compliant with official notices. These measures empower the state to intervene pre-emptively before smoke reaches Singapore, demanding early fire-suppression actions. Already, authorities have sent Section 9 preventive-action notices to 10 Indonesian plantation firms and Section 10 information-gathering notices to 10 Singapore-registered companies, including Wilmar International and Sinar Mas subsidiaries.

Key points

  • Non-compliant entities face severe commercial exclusion that directly jeopardizes their b…: Non-compliant entities face severe commercial exclusion that directly jeopardizes their broader revenue streams and business partnerships.
  • Singaporean authorities now possess legal powers to intervene pre-emptively before transb…: Singaporean authorities now possess legal powers to intervene pre-emptively before transboundary smoke physically enters the country's airspace.
  • Financial institutions, agro-forestry firms, and retailers will likely audit their supply…: Financial institutions, agro-forestry firms, and retailers will likely audit their supply chains to eliminate exposure to designated offenders.

Sources checked by our analysis pipeline: 1

SINGAPORE – Singapore’s strengthened haze law passed on Nov 4 will make a difference, as companies handed legal notices will need to fully cooperate with the authorities or face severe business repercussions, said legal experts.

Changes to the Transboundary Haze Pollution Act (THPA) could also prompt firms in the agro-forestry and retail sectors here to audit their business ties for any unwitting links to companies involved in irresponsible burning.

“More significant than any fines is the Government’s ability to make errant companies a corporate pariah, which will have a chilling effect on their ability to do business here,” said Simon Tay, chairman of the Singapore Institute of International Affairs (SIIA).

In a key addition to the 12-year-old law, the authorities here will have additional levers to target a company’s business interests and revenue streams, opening up other punitive pathways apart from prosecution.

For one thing, the amended law will have powers to impose prohibitions or measures on companies or individuals that have been designated by the minister for sustainability and the environment.

For example, the Government can issue orders that…

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