Singapore looking to strengthen haze law, may make amendments to address enforcement gaps: Grace Fu
Singapore earlier issued notices under the Transboundary Haze Pollution Act to 10 Singapore-based firms and 10 Indonesian firms.
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SINGAPORE: Singapore is looking to strengthen existing legislation, including the Transboundary Haze Pollution Act, and introduce new laws where necessary to deal with companies responsible for the haze, Minister for Sustainability and the Environment Grace Fu said on Tuesday (Oct 27).
"The objective is to address enforcement gaps, strengthen corporate accountability, and enhance our ability to investigate and take decisive action against those responsible for transboundary haze," she added.
"Where our laws need to be strengthened, we will strengthen them."
Ms Fu was speaking at the Singapore Environment Council-organised Sustainable Procurement Forum on Tuesday.
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She said the haze is "preventable and unacceptable", and companies must take responsibility for the environmental impact of their operations and supply chains.
Singapore is prepared to use a wider range of legal, regulatory and economic measures when it comes to tackling the issue, added the minister.
"Where parties responsible for the haze have interests in Singapore, there are other ways in which scrutiny can be brought to bear," said Ms Fu.
"These include legal and regulatory measures, as well as the scrutiny of investors, financiers and the market."
She 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," she added.
Singapore has already taken steps to hold companies accountable over the recent haze.
The Singapore Environment Council on Oct 19 said that it had issued a notice of temporary restrictions on Indonesian paper firm Asia Pulp & Paper's enhanced Singapore Green Labelling Scheme certification, requiring the company to submit daily fire response reports.
The National Environment Agency (NEA) on Oct 23 issued notices to 10 Singapore-based firms to seek documents and information – the first time the agency has done so since the Transboundary Haze Pollution Act went into effect.
The 10 Singapore-registered companies are in the palm oil or forestry business and own land concessions in Indonesia or have related companies with such land concessions.
The agency is also seeking more information from the 10 Indonesian firms that were issued notices in the past week.
CROSS-BORDER ENFORCEMENT CHALLENGES
Ms Fu outlined two practical challenges in enforcing laws across borders: gathering evidence and securing the cooperation of companies outside Singapore.
While Section 10 notices under the Transboundary Haze Pollution Act help Singapore obtain information needed to establish the facts and trace relevant corporate links, practical challenges remain in applying these powers against overseas companies, Ms Fu said.
She noted that serving a notice can be difficult as Singapore cannot simply exercise its enforcement powers in another jurisdiction.
Even after a notice is served, enforcement can remain difficult if the overseas company refuses to comply and none of its officers enters Singapore.
"Cooperation is therefore important. But our enforcement framework should not allow a company to frustrate an investigation simply by refusing to cooperate or remaining outside Singapore," Ms Fu said.
She said Singapore has "consistently expressed openness" to working with Indonesian authorities who share the common objective of holding responsible companies accountable.
"This posture, this position, will not change, has not changed, even as we press ahead to make adjustments," she added.
Another challenge is investigating transboundary haze, as much of the evidence is overseas. Apart from establishing that a fire occurred, the relevant corporate and operational links need to be confirmed.
These include who owns or controls the land, the relationships between different companies, and what steps were taken to prevent and fight the fires.
Corporate structures, operations and supply chains can span multiple jurisdictions, making it difficult for Singapore authorities to obtain the necessary information, she said.
"Even where information or documents are provided by an overseas company, independently verifying them can be difficult," Ms Fu said, adding that Singapore authorities cannot simply enter another jurisdiction to conduct investigations or gather evidence.
In her speech, Ms Fu also spoke about sustainable procurement. This was not just about whether a product carried the right label, but also whether it was responsibly produced and whether its producer complied with the law and could be held accountable for its environmental impact.
"Ecolabels provide buyers with trusted information. Sustainable procurement directs demand towards responsible producers. Effective regulation ensures that companies are held accountable when environmental harm occurs," she said.
"Together, these measures build the trust and transparency needed to transform markets and facilitate green trade.
"By using our purchasing decisions to support responsible producers, we can encourage better business practices, protect the environment and strengthen the credibility of sustainable products."
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