Advertise
Singaporean palm oil stocks experienced a significant downturn on October 16 following an announcement by Prime Minister Lawrence Wong regarding investigations into companies potentially responsible for haze-causing fires. The Prime Minister stated via social media that the government is prepared to take legal action under the Transboundary Haze Pollution Act where warranted, while also exploring collaborative measures with international partners.
The market reaction was immediate. Shares of First Resources saw a sharp decline of up to 9.1%, reaching a low of $3.71 during morning trading. Similarly, Bumitama Agri shares retreated by 7.5% to $1.73, and Golden Agri-Resources fell by 6.9% to $0.27. These fluctuations follow a report from The Straits Times which highlighted a Greenpeace investigation identifying concession areas belonging to First Resources and Bumitama Agri as source points for the haze.
In response to the allegations, First Resources issued a statement on October 15 defending its operations. The company maintained that fires detected within its Indonesian concessions were primarily the result of external blazes spreading across its borders. They further attributed the heightened fire risks in West Kalimantan to a 'severe' drought induced by the El Nino weather phenomenon.
The environmental situation in Singapore has reached critical levels. The 24-hour Pollutant Standards Index (PSI) in the central region climbed to 227 by 9:00 AM on October 16, a level categorized as 'very unhealthy' and the highest recorded since 2026. Other regions reported 'unhealthy' air quality. Indonesian authorities have attributed this severe wildfire season—the worst in 11 years—to the degradation of peatlands caused by historical food estate projects, pledging to prioritize peat ecosystem restoration.
Minister for Sustainability and the Environment Grace Fu clarified that Singapore is 'keeping its options open' regarding legal proceedings against non-compliant firms. A spokesperson for the National Environment Agency confirmed that they are closely monitoring fire hotspots and their direct impact on local air quality to determine further steps.
Source: The Straits Times