SINGAPORE: Singapore will use every legal, regulatory and economic lever at its disposal against companies responsible for the haze and pursue them for "as long as it takes", said Senior Minister K Shanmugam on Monday (Oct 19).
Singapore is also ready to strengthen laws against such companies "on an urgent basis", said Mr Shanmugam, who is also Coordinating Minister for National Security and Minister for Home Affairs.
Speaking to reporters during a visit to Woodlands Checkpoint, the senior minister noted that the firms responsible for the haze may try to deny responsibility.
"They may think that it is hard to get evidence, and that they may think that they can escape scrutiny. But they should not underestimate the Singapore government's determination to act," said Mr Shanmugam, when asked about companies that claim the issues are complex.
"If companies refuse to cooperate, regardless of whether they have a presence in Singapore or do not have a presence in Singapore, we will use every legal and regulatory lever at our disposal to exert pressure where it matters, including on their bottom lines, including on their access to financing, and including on their standing with investors."
Singapore will amend current legislation or introduce new laws “to ensure further cooperation” if necessary, Mr Shanmugam said without stating a timeline.
The senior minister said Singapore will “sustain pressure” on responsible companies even after the haze passes.
These firms cannot claim to be environmentally responsible while refusing to subject themselves to scrutiny, he added.
“Their claims must be backed by evidence, not just words. They cannot greenwash their behaviour. 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.
Preventive measure notices will be issued to three more companies in Indonesia, said Minister for Sustainability and Environment Grace Fu, who was also present at Woodlands Checkpoint on Monday.
The companies – PT Buana Megatama Jaya, PT Mananjung Hayak, and PT Baratama Putra Perkasa – will be issued these notices over fires in Kalimantan that may have contributed to the haze in Singapore.
This will bring the total number of firms issued the notices under the Transboundary Haze Pollution Act to 10, after the National Environment Agency said on Oct 16 that similar notices will be issued to seven other companies in Indonesia.
On Monday, Mr Shanmugam also said that Singapore appreciates the strong stance Indonesian President Prabowo Subianto's administration is adopting towards the haze issue, including taking steps that are "quite unprecedented".
"CANNOT PLAY HIDE AND SEEK"
Setting out what levers Singapore can pull against errant firms, Mr Shanmugam said Singapore will look beyond the individual companies that hold the concessions, but also into large groups and "persons who may ultimately control them".
"If there are linkages, we will try and go after these groups as well," he said.
For example, he noted that investigations show that Asia Pulp and Paper (APP) buys from three of the companies that NEA has sent preventive measure notices to.
Smoke-source points also seem to be associated with Singapore-listed First Resources and Bumitama Agri, as well as First Borneo Plantations, said Mr Shanmugam.
He noted that First Resources, for instance, has issued a detailed statement on its zero-burning policy and firefighting efforts, but added that statements alone are insufficient and must be backed by evidence.
"We will ask for the full facts and we will act based on the facts. We will consider all the evidence fairly," he said.
"Companies cannot play hide and seek with different corporate structures. Nor should they hope that because the evidence and actions are in Indonesia, they can escape responsibility in Singapore."
On what actions can be taken against companies with possible links to the haze, Mr Shanmugam said that the Singapore Exchange has asked questions of seven agri-companies listed in Singapore.
These companies are Golden Agri-Resources, Bumitama Agri, First Resources, Wilmar International, Kencana Agri, Indofood Agri and TSH Resources.
Kencana Agri said in response to SGX queries last week that Indonesian authorities have launched a preliminary inquiry into a fire incident at its subsidiary.
The company added in the bourse filing that based on information currently available, its subsidiary did not carry out land clearing or land preparation in the affected area.
Other listed companies on Friday including Golden Agri-Resources and Wilmar International, also issued statements to distance themselves from the fires and haze.
On Monday, Mr Shanmugam also noted that banks have lent money to companies with agricultural operations.
"If these companies have a potential connection to the fires, then the banks have to consider risks arising from the environment and legal issues," said Mr Shanmugam.
"The banks have asked these companies several questions and MAS (Monetary Authority of Singapore), as the regulator, will obviously have supervisory jurisdiction over the banks to make sure that they manage their risks properly."
Mr Shanmugam added that Singapore will also examine whether or not companies linked to the haze are enjoying any benefits in Singapore in terms of government grants or incentives.
"These benefits are contingent on lawful and responsible conduct – so we will need to see if they still meet the bar," he said.
Legal experts previously told CNA that there could be diplomatic implications if Singapore decides to pursue legal actions against errant companies, citing some unhappiness in Indonesia back in 2015 when Singapore tried to use the Act.
Mr Shanmugam said that it is not Singapore's approach to "shiver in our shoes before we take any action to protect our own people".
He then reiterated his support for the actions President Prabowo and his administration have taken to tackle the haze.
"We do not think there should be any bilateral issues. The Indonesian public is suffering as well, and it is in Indonesia's interest as much as ours to deal with the companies that are causing these problems," he said.
"Our actions against companies which we consider are responsible, are aligned with the broad policies as announced by the Indonesian administration under President Prabowo," he said.
"In fact, we hope to get full cooperation from Indonesia in going after the companies, and likewise, we have also offered our full cooperation in assisting to put out the fires, insofar as our assistance is required."