Singapore tightens haze laws, targets firms linked to pollution

Singapore is set to amend its Transboundary Haze Pollution Act (THPA), aiming to strengthen enforcement and hold entities accountable for haze-causing activities. This move follows the country’s worst haze episode since 2015, which disrupted daily life and raised public health concerns.

Investigations and Accountability

The Singapore National Environment Agency (NEA) has launched investigations into the recent haze episode, focusing on Indonesian plantation firms linked to forest clearance and peatland burning. They have identified at least seven to ten companies operating in Sumatra and Indonesia, and senior executives from 10 firms have been summoned by Singaporean authorities.

The proposed amendments to the THPA introduce two key changes. The first provides enhanced investigative tools to establish commercial links and hold entities accountable. The second strengthens existing provisions, enabling earlier intervention and improved deterrence.

New Powers for Authorities

Under the revised act, the director-general of environmental protection can require entities with suspected links to haze pollution to appoint private sector assessors at their own expense. These assessors will submit reports directly to the NEA, aiding in fact-finding and establishing liability.

The Minister for Sustainability and the Environment will gain new powers to designate entities or individuals convicted of offenses, suspected of wrongdoing, or non-compliant with directives. This designation allows the government to impose restrictions on business dealings, including supply and purchase of goods, services, and financial support. Violations carry a maximum fine of S$1 million per contravention, with an additional daily fine of up to S$100,000.

Penalties and Compliance Measures

The NEA stated that violating restrictions on business dealings with designated entities or individuals carries a maximum fine of S$1 million per contravention. An additional fine of up to S$100,000 may be imposed for each day the violation continues after conviction. The Minister-in-charge of the Monetary Authority of Singapore (MAS) will administer orders related to financial institutions.

To enhance public accountability, the NEA will publish lists of entities that fail to comply with notices or directions under the Act. These measures aim to strengthen transparency and encourage adherence to the regulations.

Strengthening Supply Chain Due Diligence

The amendments also target supply chain accountability, particularly in the forestry and agricultural sectors. Entities must ensure their supply chains do not involve parties contributing to haze-causing fires. This aims to promote responsible business conduct and strengthen due diligence.

The NEA can publish lists of non-compliant entities, increasing public accountability. While relations with Indonesia have been strained, Singapore remains committed to collaborating with its neighbor to address the haze problem at its source.