Singapore Palm Oil Stocks Slide Under Regulatory Pressure Amid Haze

Prime Minister Lawrence Wong confirmed that authorities are scrutinizing companies potentially responsible for the fires, which have intensified due to the El Nino weather pattern. While the government has not yet named specific targets, the threat of prosecution under the Transboundary Haze Pollution Act of 2014—which permits legal action against firms for overseas activities—triggered a sharp sell-off in the sector. First Resources shares dropped 9.1%, while Bumitama Agri saw a 7.5% decline before requesting a trading halt. Both companies were recently cited in a Greenpeace report alleging connections to the burning of land for cultivation.

In response to the market volatility and government scrutiny, First Resources stated that many hotspots identified near its West Kalimantan concessions fall outside its operational boundaries. Meanwhile, Bumitama Agri promised a full disclosure of its fire-prevention measures, and Golden Agri-Resources reiterated its zero-burning policy while seeing its own shares dip 5.2%. As the city-state distributes masks and closes outdoor facilities to combat the bitter, smoky air, the regional crisis remains acute, with Malaysia also reporting widespread school closures due to the poor air quality.