SGX RegCo seeks further disclosures from plantation firms, including links to haze notice recipients

[SINGAPORE] Singapore Exchange Regulation (SGX RegCo) is seeking further disclosure from seven Singapore-listed companies with agricultural operations and plantations in Indonesia over the forest fires and haze affecting the region, following an initial set of queries sent on Oct 16.

These issuers include agribusiness Wilmar International and palm oil group First Resources.

The latest queries follow responses to questions sent last week, with the regulator seeking greater clarity on their disclosures and the extent of their exposure to the fires and haze, an SGX RegCo spokesperson said in a statement on Wednesday (Oct 28).

The regulator has asked the companies to explain their policies and measures to monitor, prevent and respond to fires, including the basis for assessing whether these measures are adequate and effective.

It is also seeking information on any links to the 10 Indonesian companies issued preventive measure notices under Singapore’s Transboundary Haze Pollution Act.

The companies are:

• Bumi Andalas Permai;
• Bumi Mekar Hijau;
• SBA Wood Industries;
• Paramitra Mulia Langgeng;
• Sumatera Alam Anugerah;
• Hutan Lestari Raya;
• Bangkanesia;
• Buana Megatama Jaya;
• Mananjung Hayak; and
• Baratama Putra Perkasa

The regulator has further requested the companies’ boards to assess whether the fires and haze have a material impact on their businesses, and to provide the basis for their conclusions.

Companies must also disclose any queries or investigations by the authorities or agencies in Singapore, Indonesia or elsewhere.

The latest move follows SGX RegCo’s earlier engagement with eight listed agribusinesses. The companies are Wilmar International, First Resources, Golden Agri-Resources, Bumitama Agri, Indofood Agri Resources, Kencana Agri, TSH Resources and Olam Group.

In their responses last week, all eight companies maintained that they did not use fire to clear land. Several highlighted their zero-burning policies, satellite monitoring systems and firefighting capabilities.

The regulatory scrutiny also comes as Singapore authorities step up investigations into the transboundary haze.

The National Environment Agency (NEA) issued preventive measure notices to seven companies in Indonesia on Oct 16 and another three on Oct 19, following indications that smoke from fires on land held under their concessions could have reached Singapore.

The notices require the companies to deploy firefighting personnel, cease or refrain from burning activities, and submit plans to extinguish fires or prevent their recurrence.

On Oct 23, NEA also issued separate notices to 10 Singapore-registered companies, including Wilmar International and subsidiaries of other plantation groups, seeking information on their Indonesian land concessions, corporate links and fire prevention measures.