On Tuesday, several agricultural companies listed in Singapore experienced significant stock declines after Senior Minister K Shanmugam indicated that they would be held accountable for their potential involvement in the haze affecting the region. Bumitama Agri's shares fell by as much as 6.5%, while First Resources dropped to a low of 4.83%.
Other companies, including Golden Agri Resources and Wilmar International, also saw declines of nearly 2%. Shanmugam emphasized that companies cannot evade responsibility through complex corporate structures and revealed that seven firms had been questioned by the Singapore Exchange.
He specifically mentioned that some fires linked to the haze appear to be associated with First Resources and Bumitama Agri, urging these companies to provide concrete evidence of their environmental policies rather than just statements. The haze has severely impacted air quality in Singapore, reaching levels not seen since 2015, and has led to school closures in nearby Malaysia.
Shanmugam asserted that the Singapore government is determined to take action, including potentially amending laws to ensure compliance from these companies. He dismissed concerns about diplomatic repercussions with Indonesia, stating that the priority is to protect the health of Singapore's citizens and that cooperation with Indonesia is expected in addressing the issue.
This situation highlights the increasing regulatory scrutiny on companies linked to environmental issues and the potential financial implications for those involved