Transcript of Media Doorstop by Mr K Shanmugam, Senior Minister, Coordinating Minister for National Security and Minister for Home Affairs, on the Haze Situation

Reporter: Can you explain a bit more about the latest initiatives the Government has in relation to the haze situation?

SM: You know, Singaporeans are deeply frustrated by the worsening haze situation and understandably so. The Prime Minister highlighted last Thursday what we will do about the situation, and the Ministers are following up. The haze is affecting our health seriously. Senior citizens, young children, those with illnesses particularly, but everyone else too, and it is really unacceptable.

In this context, it was disappointing that an Indonesian official had recently said that Singapore’s oxygen “comes from [their] forests”. Frankly, it is not right to say this when this entire region is suffering as a result of the bad behaviour of companies breaching regulations in Indonesia, and the people suffering the most are Indonesians themselves.

I don’t think the view of that Indonesian official is held by many others in the Indonesian Government or the broader public, as the reactions to his statement shows. We shouldn’t have to put up with this – the smog as a result of the burning. It is entirely preventable.

We must also be clear about where responsibility for this lies. I have previously spoken about the haze situation in 2013, and again in 2015. I said this was not simply an act of nature, but a problem driven by companies pursuing profits.

We haven’t had the problem for some years. But now it has returned. 

We appreciate that President Prabowo and his administration are focused on trying to solve the problem. The President has removed the head of the agency which oversees fire-fighting and disaster relief, and has appointed a new person. The President has personally expressed commitment to tackling the haze. He has put in place directives to prohibit slash-and-burn practices on peatland. Finally, he has also said that he wants to prioritise fire prevention as a long-term solution. Some of these steps are quite unprecedented. They show what President Prabowo and his Administration’s approach and thinking are. We also welcome President Prabowo’s approval of foreign assistance to combat the fires. We, Singapore, have offered our assistance, and we will do our part to support. 

Reporter: SM, for the bad companies that you are referring to – what can companies or banks linked to those companies do in order to influence some change in the situation?

SM: You know, in Singapore, we will also take further steps against the companies that may be responsible. PM has directed that the Government gives this its fullest attention and take stronger action. NEA has said that it has sent Notices to companies in Indonesia that are suspected of being involved with the fires. The Notices require the companies to fight the fires, stop the burning, and prevent the recurrence of such fires.

These companies are all in Indonesia. AGC has told me that the companies may raise some technical and legal issues. We will see.

If we assess that the companies are not cooperating, we will see who they are linked to – either in Singapore or internationally and we will see what further actions we can take. There are actions that we can take as I will explain shortly.

We will also look beyond individual concession holders: to large corporate groups, and persons who may ultimately control them. If there are linkages, we will try and go after these groups as well.

Several of these companies do appear to be linked, and we are looking at those links. For example, investigations show that Asia Pulp and Paper (APP) buys from three of the companies that NEA has sent Notices to. We will drill into this further.

Some of the fires or smoke-source points seem to be associated with Singapore-listed First Resources and Bumitama Agri, as well as First Borneo Plantations. We will be asking more questions of these companies.

Take for example, First Resources. It issued a detailed statement on its zero-burning policy and firefighting efforts. It’s as I said, listed in Singapore. But statements, no matter how well drafted, are not good enough. Show us the evidence. Where did the fires start, who owns those lands? Can they identify who started the fires? What exactly did they do to stop the fires? Did the fires conveniently only burn down old trees, or did the fires also burn productive trees? We will ask for the full facts and we will act based on the facts. We will consider all the evidence fairly.

Companies cannot play hide and seek with different corporate structures. Nor should they hope that because the evidence and actions are in Indonesia, they can escape responsibility in Singapore. Our agencies are considering legal, regulatory, and economic measures that can be taken against these companies.

Let me give you a few examples. SGX has asked questions of seven agri-companies which are listed in Singapore. The questions for these agri-companies relate to their operations and possible linkages to the haze.

The companies are:

(a) Golden-Agri Resources;

(b) Bumitama Agri;

(c) First Resources;

(d) Wilmar;

(e) Kencana Agri;

(f) Indofood Agri; and

(g) TSH Resources.

I referred to some of these companies earlier.

Likewise, banks have lent monies to these companies with agricultural operations. If these companies have a potential connection to the fires, then the banks have to consider risks arising from the environment and legal issues. The banks have asked these companies several questions and MAS, as the regulator, will obviously have supervisory jurisdiction over the banks to make sure that they manage their risks properly.

We will also examine whether the companies that are said to be linked to the haze are in any way enjoying benefits in Singapore. E.g. are they receiving Government grants or incentives? These benefits are contingent on lawful and responsible conduct – so we will need to see if they still meet the bar.

Reporter: How is Singapore going to deal with companies who claim that such problems are very complex? There are farmers, small squatters that start the fire, and it’s a big area – it’s hard to control. Also, if there are repeat offenders in this whole episode here, how is Singapore’s strategy against them?

SM: You know, some companies may try to deny responsibility. They may think that it is hard to get evidence, and that they may think that they can escape scrutiny, but they should not underestimate the Singapore Government’s determination to act. 

If companies refuse to cooperate, regardless of whether they have a presence in Singapore, or do not have a presence in Singapore, we will use every legal and regulatory lever at our disposal to exert pressure where it matters – including on their bottom-lines, including on their access to financing, and including on their standing with investors.

If necessary, we will amend current legislation or introduce new laws, on an urgent basis, to ensure further cooperation.

Companies cannot claim to be environmentally responsible while refusing to subject themselves to scrutiny. Their claims must be backed by evidence, not just words. They cannot green-wash their behaviour.

They should also be under no illusion that they can simply wait for the haze to clear, and return to business as usual. We will pursue this matter for as long as it takes.

MSE, together with other agencies, has taken several steps to deal with the ground situation, and to see what can be done about the companies which may be involved.

The Homefront Crisis Ministerial Committee (HCMC) that I chair is looking into these issues together with the relevant agencies. Dealing with these companies is one of those issues. 

In summary, we will take the following further steps:

a)    One, we will look beyond individual companies that are involved or which hold land on concessions. We will look to larger corporate groups and individuals who may be responsible.

b)    Two, we will explore a wider range of legal, regulatory, and economic measures, including those involving the companies’ interests in Singapore and overseas. If our laws need to be strengthened, we will do so.

c)     And three, we will sustain pressure on the responsible parties, even after the haze passes. We want to make clear that the companies cannot simply wait things out.

Reporter: What are some of your observations during your visit here at the Woodlands Checkpoint?

SM: You know, over the last few days, all of the Ministers in the Ministry of Home Affairs – Ministers Edwin Tong, Sim Ann, Goh Pei Ming and Zhulkarnain have been visiting ground units to offer support and express our appreciation, because we have thousands of officers working outside in difficult conditions all across Singapore. And today, I visited Woodlands, together with Ministers Grace and Rahayu, to come here to the checkpoint – as you know, is one of the busiest in the world, hundreds of thousands of people crossing every day – our officers have to work outside in the haze. So we thanked them for their support. Tough conditions, but morale is high, and we will continue to support them in every way that we can.

Reporter: SM, legal experts have told CNA that there could be diplomatic implications if Singapore decides to pursue legal actions against the errant companies. How will Singapore balance these potential implications while taking a strong stance against such companies?

SM: You know, there are companies that we think are responsible for the burning. Our people are suffering. What do these experts think we are supposed to do? Shiver in our shoes before we take any action to protect our own people? That's not the Singapore approach. If we think like that, there will be no Singapore, and we do not think there should be any bilateral issues. The Indonesian public is suffering as well, and it is in Indonesia's interest as much as ours to deal with the companies that are causing these problems. I spoke to you earlier about what President Prabowo and his administration have said that they will do – they have said that they want to tackle the haze. Our actions against companies which we consider are responsible, are aligned with the broad policies as announced by the Indonesian administration under President Prabowo. In fact, we hope to get full cooperation from Indonesia in going after the companies, and likewise, we have also offered our full cooperation in assisting to put out the fires, insofar as our assistance is required.