Parliament proposes up to S$20M fines for firms linked to haze-causing fires

Haze law changes could affect business climate, but ‘we must do what is right’: MP Poh Li San

Singapore is proposing tougher penalties and wider enforcement powers against companies linked to overseas fires that cause or risk causing transboundary haze pollution.

Under proposed amendments to the Transboundary Haze Pollution Act, the maximum fine for the main offence would increase from S$2 million to S$20 million.

The Government would also be able to restrict business dealings with designated companies and individuals, including the provision of loans and other financial support.

Speaking in Parliament on Wednesday (4 Nov), Minister for Sustainability and the Environment Grace Fu said the changes would give authorities stronger tools to investigate irresponsible burning, establish accountability and impose meaningful consequences.

She noted that the recent haze episode was Singapore’s most severe since 2015.

Ms Fu said that human activities, such as irresponsible land clearing and peatland drainage, significantly drove transboundary haze rather than it being an act of nature.

The proposed changes follow legal notices the National Environment Agency (NEA) issued in 2026 to 10 Indonesian companies and 10 Singapore companies to obtain information about their links to fires in Indonesia.

Government could designate firms and restrict business dealings

One major change is that the Minister for Sustainability and the Environment will be empowered to designate companies or individuals suspected of involvement in offences under the Act.

This could include entities convicted of an offence, suspected of conduct constituting an offence, or those who have failed to comply with relevant directions or notices.

The Government could then restrict business dealings with designated entities.

These restrictions could cover the supply or purchase of goods and services, as well as the provision of loans and other financial support.

Those who breach such orders could face fines of up to S$1 million for each contravention, with an additional S$100,000 for every day the offence continues.

The amendments would also allow authorities to put certain businesses on notice not to deal with companies linked to fires that pose a risk of haze pollution in Singapore.

This could include retailers selling palm oil or paper products from potentially offending firms.

Entities receiving such notices would have to take appropriate steps to ensure their supply chains and business arrangements did not involve the offending companies.

Failure to comply without reasonable excuse could result in fines of up to S$20 million.

Companies may be required to appoint private assessors

The proposed amendments would also give the Director-General of Environmental Protection the power to require companies suspected of having links to haze pollution to appoint private-sector assessors.

These assessors would investigate the companies’ links and submit reports to NEA.

The authorities could then use the findings to decide whether to clear the companies or pursue further action.

Ms Fu stressed that directing a company to appoint an assessor did not necessarily mean the firm had committed, or was suspected of committing, an offence.

The changes aim to help authorities establish facts, particularly when obtaining reliable evidence from overseas is difficult.

NEA would also be able to publicly list entities that fail to comply with notices or directions under the Act, including those directed to appoint assessors.

Maximum fine for main offence to rise to S$20 million

The maximum fine for the main offence of causing or contributing to fires that pose a risk of haze pollution in Singapore would increase from S$2 million to S$20 million.

The daily maximum fine would also rise from S$100,000 to S$1 million.

The amendments would allow courts to consider profits gained or losses avoided through the offence when determining additional penalties.

A new civil penalty framework would also allow NEA, with the Public Prosecutor’s consent, to bring civil action against entities that contravene the Act.

The maximum civil penalty would be S$10 million, with a minimum of S$100,000 for corporations and S$50,000 for other entities.

An entity would not face both civil and criminal penalties for the same case.

The proposed changes would also expand the Act’s scope to cover the risk of haze pollution, allowing authorities to act even before smoke reaches Singapore.

Other measures allow authorities to serve legal documents electronically or through public channels, and grant authorised officers arrest powers in Singapore.

Poh Li San acknowledges possible impact on business climate

During the debate, Member of Parliament (MP) Poh Li San said the amendments would give the Government “sharper teeth and a stronger bite” against companies contributing to haze pollution.

She noted that investigations into four of the six companies issued legal notices in 2015 were still ongoing.

Ms Poh said stronger enforcement could change companies’ behaviour and encourage them to take greater responsibility for their actions.

However, she acknowledged that the changes could affect Singapore’s relations with neighbouring countries and its pro-business environment.

“A stricter haze law will inevitably dampen the business climate for companies operating land concessions in Indonesia. Some businesses may even pull out of Singapore as a result,” she said.

“But we must do what is right.”

She added that allowing every offence to be arrestable could be seen by some as draconian, but argued that the prospect of imprisonment would be an effective deterrent.

He Ting Ru calls for greater corporate transparency

MP He Ting Ru called for greater accountability among financial institutions and other companies with links to firms under investigation for haze.

She asked how the Government would scrutinise financial institutions dealing with haze-linked companies, describing them as “indirect abettors” of the burning.

Ms He suggested that banks report aggregate data on how many clients they reviewed for haze links and what actions they took.

She also called for Singapore’s sovereign wealth fund and government-linked companies to disclose their exposure to firms under investigation for haze.

Ms He said the reports made by private assessors should be made public.

She argued that disclosure could make companies more conscious of the reputational consequences of irresponsible practices, while helping consumers make informed purchasing decisions.

Ms He also called for more pre-emptive measures to address financial and commercial links before fires occur.