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Under Section 5 of the current Act, an entity convicted of causing or contributing to haze pollution in Singapore, whether locally or overseas, can be fined up to S$100,000 a day, capped at S$2 million.<\/span><\/p>\n The proposed amendments would raise this to up to S$1 million a day with an overall cap of S$20 million.<\/span><\/p>\n Ms Fu said the original penalties were comparable to those for domestic pollution offences, but the serious harm of transboundary haze \u201cneeds to be deterred by stronger penalties, to underscore the gravity of such offences\u201d.\u00a0<\/span><\/p>\n She said the increase was calibrated with reference to existing legislation and the financial scale of the companies involved.<\/span><\/p>\n The amendments would also let the court assess the profit gained or loss avoided because of an offence and impose that amount as an additional penalty on the convicted entity.<\/span><\/p>\n A civil penalty route would be introduced as well. With the public prosecutor\u2019s consent, NEA could start civil action in court for a maximum penalty of S$10 million.<\/span><\/p>\n \u201cTo ensure entities are not penalised twice, an entity cannot be subject to both civil and criminal penalties for the same case,\u201d the agency said.<\/span><\/p>\n The government is also proposing financial and commercial consequences for entities or individuals linked to offences under the Act, whether or not criminal proceedings follow.<\/span><\/p>\n 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.\u00a0<\/span><\/p>\n \u201cDesignation will enable the government to impose orders restricting business dealings with the designated entity or individual,\u201d Ms Fu said.\u00a0<\/span><\/p>\n Companies could be restricted from buying, selling or engaging in other dealings with designated entities, such as providing loans or other financial support.<\/span><\/p>\n 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.<\/span><\/p>\n \u201cThe 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.\u00a0<\/span><\/p>\n \u201cAt the same time, the prohibitions ensure that others do not deal with such designated entities, including through complex business arrangements or corporate structures,\u201d Ms Fu said.\u00a0<\/span><\/p>\n 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.\u00a0<\/span><\/p>\n \u201cInstead, we may want to take action against the larger corporate entities above these individual entities directly,\u201d she said.\u00a0<\/span><\/p>\n 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.<\/span><\/p>\n \u201cThese obligations are intended to strengthen due diligence and responsible business conduct across the supply chain,\u201d Ms Fu said.<\/span><\/p>\n \u201cThe 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.\u201d<\/span><\/p>\n 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.<\/span><\/p>\n NEA would also be empowered to publish lists of entities who have not complied with notices or directions.<\/span><\/p>\n \u201cTogether with the restriction on business dealings that may be imposed on designated entities, these changes significantly strengthen deterrence under the THPA,\u201d NEA said.\u00a0<\/span><\/p>\n<\/div>\nDESIGNATION OF ENTITIES\u00a0<\/span><\/h2>\n
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