Singapore to impose $15M fines and arrest threats on firms linked to transboundary haze

Singapore's Parliament on Nov. 4 debated and passed amendments to the Transboundary Haze Pollution Act, strengthening enforcement powers, increasing penalties and introducing tougher measures against companies linked to air pollution caused by forest fires.

Under the amendments, offenses under the Act will be classified as arrestable, while courts will be allowed to conduct trials in absentia against defendants based overseas or those who cannot be contacted.

Fines for companies failing to comply with regulations will increase tenfold to nearly US$800,000 per day, while the maximum penalty will rise to more than $15.6 million.

Minister for Sustainability and the Environment Grace Fu said Singapore needed more effective tools to gather and verify information, trace complex corporate relationships and impose sufficiently deterrent penalties on offenders. She stressed that a strengthened legal framework would enable authorities to intervene earlier, before haze reaches Singapore.

The amendments also empower the Government to require companies to appoint assessors from the private sector to investigate fires, business activities and related corporate relationships. In addition, authorities may impose restrictions on designated companies, including limiting their access to financial services in Singapore.

The changes come after Singapore experienced several weeks of haze from forest fires in Indonesia, prompting public calls for tougher government action. The existing law was enacted in 2014, but its enforcement has faced considerable challenges due to jurisdictional barriers and difficulties in gathering evidence overseas.