Singapore to tighten haze law amid evidence hurdles

She said Singapore’s willingness to work with the Indonesian authorities will not change, even as the country presses ahead to make adjustments.

The second challenge lies in gathering and verifying evidence across the borders, she added.

Apart from establishing a fire, Singapore also needs to establish relevant corporate and operational links, including who owns or controls the land, the relationships between different companies, and what steps were taken to prevent and fight the fires.

Fu, who is also Minister-in-charge of Trade Relations, noted that corporate structures, operations and supply chains can span multiple jurisdictions.

The necessary information may therefore be held overseas, making it difficult for the Singapore authorities to obtain, the minister said.

Said Fu: “Even where information or documents are provided by an overseas company, independently verifying them can be difficult.”

The Singapore authorities cannot simply enter another jurisdiction to conduct investigations, she added.

To this end, the Government on Oct 23 announced that it will convene a specialist panel comprising law, audit and investigative firms to support cross-border inquiries into identified companies’ operations, corporate relationships and supply chains.

Fu said Singapore is examining the adequacy of its existing law.

This review, which will also address enforcement gaps and strengthen corporate accountability, could result in amendments or introduce new laws where necessary.

But the law is just one tool that Singapore can use. Fu said other measures, including regulatory and economic means, will also be explored.

Pointing to the Singapore firms which were issued Section 10 notices on Oct 23, Fu said: “The increased scrutiny has already prompted companies to respond publicly and set out their positions. The broader point is that companies are accountable not only to regulators.

“Investors, financiers, customers and the wider public increasingly expect companies to demonstrate responsible environmental practices.”

The Straits Times reported on Oct 26 that all 10 firms had acknowledged the requests for information. Most of them said they would cooperate with the authorities, while three did not explicitly say they would do so.

Among the 10 Singapore firms, two of them are linked to Asia Pulp & Paper (APP) – APP Company and APP Company (China). Products linked to APP include paper brands Paseo, Nice and Paperline.

During the recent haze episode, the SEC had stepped up monitoring under its green label, including through additional reporting and supply chain checks, noted Fu.

The SEC had on Oct 18 taken action against APP after the firm’s suppliers were linked to haze-related fires.

The council said the next day that it had requested more information from APP and that it might suspend the company’s use of the label if it is unable to demonstrate effective measures to counter the fires.

ST has asked the SEC for updates on their investigations.

Said Fu: “(Sustainable procurement) is not only about whether a product carries the right label.

“It is about whether the product has been responsibly produced, and whether the producer abides by the law and can be held accountable for its environmental impact.”