Palm oil stocks slide after Singapore begins looking into which firms responsible for haze

[SINGAPORE] Shares of palm oil producers fell on Friday (Oct 16) after Prime Minister Lawrence Wong said that the country is looking into which companies may be responsible for haze-causing fires.

Where warranted, Singapore will take action under its Transboundary Haze Pollution Act, and also explore joint action with other countries, said PM Wong in a Facebook post on Thursday.

First Resources shares fell as much as 9.1 per cent to S$3.71 at 9.20 am. The counter pared some losses to end the day 6.9 per cent lower at S$3.80.

Bumitama Agri retreated 7.5 per cent to an intraday low of S$1.73, then rebounded somewhat to close 4.8 per cent lower at S$1.78. Golden Agri-Resources dropped as much as 3.4 per cent to S$0.28.

The Straits Times reported on Thursday that a recent Greenpeace investigation had named First Resources and Bumitama Agri among entities with concession areas registering haze source points.

First Resources on Thursday defended itself, stating that fires detected within its Indonesian palm oil concessions were largely caused by external blazes spreading across its boundaries. It attributed the elevated fire risk in West Kalimantan to a “severe” El Nino-induced drought. Indonesia on Thursday blamed peatland degradation by past food estates for its worst wildfire season in 11 years, and said it will work to restore its peat ecosystem.

SEE ALSO

Singapore looking into which companies responsible for haze-causing fires: PM Wong

First Resources blames El Nino, outside fires for Kalimantan hotspots amid haze scrutiny

Indonesia ready to accept foreign firefighting assistance on haze, says foreign minister

Indonesia blames peatland degradation for raging fires, vows restoration

Two Singapore-listed palm oil firms named in Greenpeace report on Indonesian plantation fires

Singapore collecting data on haze, will ‘keep its options open’ on taking legal action: Grace Fu

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Air quality deteriorated across all of Singapore overnight. The 24-hour Pollutant Standards Index reading in the central region hit the “very unhealthy” level at midnight on Friday and stood at 227 at 9 am – a new high for the year. Readings in the rest of the country were at the “unhealthy” level.

Minister for Sustainability and the Environment Grace Fu on Wednesday said that Singapore was “keeping its options open” on whether it will take action against errant companies under the Transboundary Haze Pollution Act.

That followed a National Environment Agency spokesperson saying that the agency “has been closely monitoring the haze situation, gathering information on fire hot spots, their sources and impact on Singapore’s air quality”.