Singapore Targets Palm Oil Firms Amid Worst Haze in a Decade

The government has classified air quality as "very unhealthy," prompting the distribution of masks and the closure of outdoor facilities. These hazardous conditions stem from illegal land-clearing fires in Indonesia, exacerbated this year by the El Nino weather phenomenon. While the fires primarily burn in Kalimantan and Sumatra, the smoke has drifted across the region, leading to school closures in neighboring Malaysia.

Investors reacted immediately to the threat of legal scrutiny. First Resources shares tumbled by 9.1%, while Bumitama Agri saw a 7.5% drop before requesting a trading halt. Both companies were cited in a recent Greenpeace report alleging connections to the burning areas. First Resources stated that while hotspots were detected near its West Kalimantan concession, most occurred outside its operational boundaries. Bumitama Agri has promised to release a formal position regarding its fire-prevention measures and the specific incidents surrounding its sites.