Singapore Raises Haze Penalty Cap to S$20 Million and Expands Enforcement Powers

Singapore's Parliament passed amendments on Nov. 4 to raise the maximum fine for the principal transboundary haze offence to S$1 million a day, capped at S$20 million. The changes also expand the country's ability to act when a fire abroad threatens to send smoke into Singapore.

The Singapore government says the amendments address a recurring difficulty under the Transboundary Haze Pollution Act, introduced in 2014. Records, people and companies linked to overseas fires can be difficult to reach. Layers of suppliers and related companies can also make it harder to identify who controlled an activity or had the ability to intervene.

For businesses operating across Southeast Asia, including those whose supply chains extend through Malaysia, the changes put more emphasis on identifying links to burning and being able to show what action was taken. The powers are tied to haze in Singapore or a risk of haze reaching it, and the government says enforcement will respect the sovereignty of neighbouring countries.

Earlier Intervention and Supply Chain Checks

Under the amendments, authorities can act when an overseas fire poses a haze risk to Singapore. A committee will advise the Director-General of Environmental Protection on assessing that risk. The change gives authorities a way to intervene before haze arrives and the effects are recorded in Singapore.

Some companies may be directed to address links between fires and their business arrangements. The government identified major forestry and agricultural companies among the types of businesses that could be affected. How they identify risk in supplier relationships and what they do after learning about a fire could matter in determining whether they have met a direction.

Authorities may also direct entities with suspected links to haze to pay for independent specialist assessments. Assessors report to the National Environment Agency, which then decides whether further steps are warranted. The assessment establishes facts for the agency, while a court determines liability.

The amendments set out what companies must show if they rely on a defence that another person caused the fire. An entity must establish both that the other party acted without its knowledge and that it took reasonable measures to prevent and fight the fire. The framework thus puts attention on the steps a company could take as well as the origin of the fire.

Civil Penalties and Business Restrictions

The National Environment Agency can apply for a civil penalty of up to S$10 million with the Public Prosecutor's consent. That gives the agency a route to court in cases where criminal proceedings may be difficult to pursue. A company cannot face both a civil penalty and criminal prosecution for the same case, according to the government.

The amendments also allow restrictions on dealings with designated companies or individuals. They may cover goods, services or financing. Grounds for designation include a conviction, reasonable suspicion of conduct constituting an offence or failure to comply with a relevant direction or notice. Separate provisions allow for electronic service of documents and, in defined circumstances, proceedings in the absence of a properly notified defendant.

Sustainability and Environment Minister Grace Fu outlined the changes in Parliament. Singapore says it will continue working with neighbouring countries on preventing fires at source. The amendments give Singapore additional enforcement tools within its jurisdiction while that regional work continues.