Syed Saddiq urges Asean pressure, financial squeeze on firms linked to haze

PARLIAMENT | Muar MP Syed Saddiq Syed Abdul Rahman has called for stronger diplomatic and financial pressure on companies linked to forest fires in Indonesia, saying repeated appeals alone have failed to resolve the transboundary haze problem.

Debating Budget 2027 in the Dewan Rakyat today, Syed Saddiq proposed a coordinated Asean diplomatic protest and restrictions on financing for companies linked to slash-and-burn practices.

PARLIAMENT | Muar MP Syed Saddiq Syed Abdul Rahman has called for stronger diplomatic and financial pressure on companies linked to forest fires in Indonesia, saying repeated appeals alone have failed to resolve the transboundary haze problem.

Debating Budget 2027 in the Dewan Rakyat today, Syed Saddiq proposed a coordinated Asean diplomatic protest and restrictions on financing for companies linked to slash-and-burn practices.

“We need to hit them where they hurt the most,” he said.

He argued that major regional banks, including Maybank, CIMB, and Singapore’s DBS, could exert pressure by cutting off financing for companies found to be involved.

“Companies which are even slightly linked to these slash-and-burn tactics must be kept out of the system and should no longer be given access to capital markets... or loans from our institutions,” Syed Saddiq (above) said.

Syed Saddiq stressed that Malaysia must also be willing to act against its own companies if they were implicated.

“We cannot be hypocritical. When our companies are involved, don’t be afraid to take action against our companies,” he said.

His remarks came after Greenpeace Indonesia and Malaysia, together with Pantau Gambut, said earlier this month that Malaysian and Singaporean-linked corporate entities were among those connected to haze-source points and fire-affected areas in Indonesia.

Syed Saddiq also cited Singapore’s Transboundary Haze Pollution Act, arguing that Malaysia should introduce similar legislation to hold Malaysian-linked companies accountable for activities abroad.

Singapore enacted the law in 2014, allowing action against entities whose conduct outside the country causes or contributes to haze pollution there.

Malaysia previously considered similar legislation but shelved the proposal in 2020.

Diplomatic protest

On the diplomatic front, the former minister said Malaysia should not act alone.

“We need to send a firm diplomatic protest that Malaysia objects, and it should not only be Malaysia. This must be agreed upon collectively by Asean, particularly neighbouring countries that are also affected, such as Singapore.

“We must send a very clear diplomatic protest,” he said.

During his speech, Sany Hamzan (Harapan-Hulu Langat) interjected to ask what action Syed Saddiq would take against Indonesia if he were prime minister.

“I see the way Muar debates and, insya-Allah, I think one day Muar can become prime minister,” Sany (below) said before asking how he would tackle the fires and resulting haze.

Syed Saddiq responded by summarising three measures - coordinated Asean pressure, restrictions on financing for companies linked to the fires, and the mobilisation of Malaysian consumers to exert economic pressure.

Education gap

He also warned that prolonged haze could widen education inequalities, with school closures disproportionately affecting poorer students who lack access to devices, stable internet or private tuition.

“The education gap will get worse because of the haze,” he said.

He added that Malaysians may be less inclined to embrace greener practices at home if large-scale forest burning continues elsewhere in the region.

Malaysia has repeatedly offered Indonesia firefighting assistance since September, including a Bombardier CL-415MP aircraft, three helicopters and 52 personnel.

Although Indonesian President Prabowo Subianto initially welcomed the offer conveyed during Deputy Prime Minister Ahmad Zahid Hamidi’s official visit to Jakarta, operational arrangements have yet to be finalised.

Indonesian news agency Antara yesterday quoted Environment Minister Mohammad Jumhur Hidayat as saying that discussions on Malaysia’s assistance were still ongoing.