issued preventive measure notices to seven companies<\/span><\/a> in Indonesia, saying there were indications that smoke from fires on their concession lands could have reached the Republic, and requiring them to extinguish the fires and prevent their recurrence.<\/p>\nBut investors in palm oil companies, including those listed in Singapore, have a role to play in reducing the risk of another haze crisis.<\/p>\n
Beyond asking whether production and profits are safe, they should question how well the businesses they own are managing risks that they have prepared for and known about for years, and what more they can do before the next round of burning.<\/p>\n
In an Oct 16 Singapore Exchange filing, First Resources disclosed that fires in Indonesia\u2019s West Kalimantan had not significantly affected its 2026 production targets or adversely affected its revenue, profit or asset values. The company has an Indonesian subsidiary, ANJ, which operates in the area.<\/p>\n
Other oil palm companies listed on SGX have also issued similar statements.<\/p>\n
These disclosures may reassure shareholders, but they say little about the costs borne by people and businesses affected by the smoke, or the damage to landscapes and wildlife.<\/p>\n
The wider consequences include lost productivity, disruption to tourism and higher healthcare spending in Indonesia and its neighbouring countries, including Singapore. For weeks now, people here have had to adjust their daily routines to manage the haze, while the longer-term health and environmental consequences may take years to become clear.<\/p>\n
These costs may not show up in an oil palm company\u2019s accounts, but investors should take them into consideration when deciding whether a business is operating responsibly and whether it is worth investing in.<\/p>\n