Several listed agricultural companies in Singapore fell on Tuesday, following a warning from Senior Minister K. Shanmugan that relevant enterprises would not "escape responsibility" for their possible role in the haze enveloping the city-state.
Shang Mugen said, 'Companies cannot play hide-and-seek through different corporate structures in the hope that this will help them.' He also revealed that the Singapore Exchange has already approached seven companies.
Bumitama Agri once fell by 6.5%, First Resources once fell by 4.83%. Golden Agri Resources and Wilmar International both fell by nearly 2%.
"We will use all legal and regulatory means at our disposal to exert pressure in the most critical areas, including on their profits, their financing channels, and their position among investors," said Shang Mugen.
The official, who also serves as the Minister of Home Affairs of Singapore, stated that some fire sources or smoke emanations seem to be related to First Resources, Bumitama Agri, and the unlisted First Borneo Plantations.
"Take First Resources as an example. The company issued a detailed statement regarding its zero-waste burning policy and fire-fighting efforts... But no matter how well the statement is written, it's not enough. Please produce evidence," he said.
Other companies named by the minister include Golden Agri - Resources, Wilmar International, Kencana Agri, Indofood Agri, and TSH Resources.
In the past few weeks, haze has affected business activities and daily life in Singapore and Malaysia, with air quality in Singapore reaching levels not seen since 2015.
Schools in Johor State, Malaysia, have also been closed due to air quality reaching unhealthy levels.
Shang Mugen said, "They should not underestimate the Singaporean government's determination to take action." He added, "We will use all legal and regulatory means at our disposal to exert pressure in the most critical areas, including on their profits, their financing channels, and their position among investors."
He also stated that if necessary, Singapore could even "urgently" amend laws or introduce new ones to ensure cooperation. Companies that may be related to the haze problem will also be reviewed to determine whether they still meet the criteria for receiving government subsidies or incentives.
When asked whether Singapore's actions would affect the bilateral relations between the city-state and Jakarta, Shang Mugen denied it, saying, "Our people are suffering. What do you experts think we should do? Should we hesitate before taking any action to protect our own people? That's not Singapore's way of doing things."
He was responding to relevant questions in an article by the local media CNA. The article cited legal experts stating that Singapore's actions against companies in Indonesia that cause haze may have diplomatic implications.
"If we think that way, there wouldn't be a country like Singapore; and we also don't believe that any bilateral issues would arise. The Indonesian public is also suffering, and dealing with these companies that create problems is in the interest of both Indonesia and us."
He said that Singapore's actions against these companies are in line with the overall policy of Indonesian President Joko Widodo.
"In fact, we hope to receive full cooperation from Indonesia in investigating these companies," added Shang Mugen.
