Singapore proposes raising maximum haze penalty from S$2 million to S$20 million

The minister for sustainability and the environment would be empowered to designate entities or individuals who have committed or are suspected of committing offences, failed to comply with notices or directions, or received an adverse assessment report. A criminal conviction is not necessary for an entity to be designated. 

“Designation will enable the government to impose orders restricting business dealings with the designated entity or individual,” Ms Fu said. 

Companies could be restricted from buying, selling or engaging in other dealings with designated entities, such as providing loans or other financial support.

Where restrictions concern services provided by financial institutions, the minister-in-charge of the Monetary Authority of Singapore would determine and administer the orders, she said.

“The power to designate and impose restrictions is meant to impose economic consequences on those responsible for irresponsible burning or with established links to irresponsible burning. 

“At the same time, the prohibitions ensure that others do not deal with such designated entities, including through complex business arrangements or corporate structures,” Ms Fu said. 

But Ms Fu also noted that designation alone is insufficient as it may not be practical for the government to identify every entity involved in burning or every firm in its supply chains. 

“Instead, we may want to take action against the larger corporate entities above these individual entities directly,” she said. 

The amendments would therefore also allow authorities to put certain entities, particularly those in the forestry and agricultural sectors, on notice. They would have to ensure their business arrangements and supply chains do not involve those that cause or contribute to fires posing a haze risk to Singapore.

“These obligations are intended to strengthen due diligence and responsible business conduct across the supply chain,” Ms Fu said.

“The objective is not to impose an impossible guarantee that no risk will ever arise, but to ensure that companies do not turn a blind eye to irresponsible forestry and agriculture practices.”

Failure to comply with designation restrictions or such notices can attract a maximum fine of S$1 million for each breach, and up to S$100,000 for each day the breach continues.

NEA would also be empowered to publish lists of entities who have not complied with notices or directions.

“Together with the restriction on business dealings that may be imposed on designated entities, these changes significantly strengthen deterrence under the THPA,” NEA said.