Singapore Tables Bill to Raise Maximum Haze Fine to S$20 Million and Curb Business Dealings

Singapore introduced a Bill in Parliament on 4 November to raise the maximum fine for its main cross-border haze offence from S$2 million to S$20 million. The maximum daily fine would also rise tenfold, from S$100,000 to S$1 million.

The Bill follows Singapore’s worst haze episode since 2015, and investigations into it are still under way. Minister for Sustainability and the Environment Grace Fu set out the changes in Parliament, where the Transboundary Haze Pollution (Amendment) Bill was introduced under a Certificate of Urgency, which allows Parliament to debate and vote on it in the same sitting.

Loans and Other Business Dealings Could Be Restricted

The Bill would let the environment minister formally designate companies or individuals, allowing the Government to restrict how others do business with them. Orders could cover the buying and selling of goods and services, as well as loans and other financial support.

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The minister could designate someone who has been convicted under the haze law or whom the minister has reason to suspect of an offence. Failing to comply with a relevant notice or direction, or receiving an unfavourable report from an assessor, could also be grounds for designation.

Anyone who breaches a restriction could face a fine of up to S$1 million for each breach, plus up to S$100,000 for each day it continues. The Bill would also let authorities direct certain businesses, particularly those in the forestry and agricultural sectors, to take steps to keep firms responsible for fires that pose a haze risk out of their supply chains.

Singapore Could Act Before the Smoke Arrives

The amended law would cover conduct that causes or contributes to an overseas land or forest fire that poses a risk of haze in Singapore, even before the smoke reaches the country. The National Environment Agency (NEA) would assess the risk using factors such as how far away the fire is, how long it has been burning and which way the wind is blowing.

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The authorities could also require companies with suspected links to haze to pay for outside experts to examine those links. The experts would report directly to NEA, which would use their findings to decide whether further action is warranted.

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On top of the criminal fine, a court could order a convicted company to pay an amount equal to the profit it made or the loss it avoided through the offence. The Bill would also give NEA a separate route to seek a civil penalty of up to S$10 million with the Public Prosecutor’s consent. That route would be available as an alternative to criminal prosecution in the same case.