Singapore Agricultural Shares Fall After Haze Warning From Minister

Shares in several Singapore-listed agricultural companies fell Tuesday after Singapore Senior Minister K Shanmugam warned firms that may be linked to regional haze could face pressure on financing and standing with investors.

The Singapore Exchange (SGX) questioned seven firms about their operations and possible links to the haze, Shanmugam said. The firms named were First Resources, Bumitama Agri, Golden Agri-Resources, Wilmar International, Kencana Agri, Indofood Agri and TSH Resources.

Shanmugam separately said some fire or smoke source points appeared to be associated with First Resources, Bumitama Agri and unlisted First Borneo Plantations. Bumitama Agri fell as much as 6.5% Tuesday, while Golden Agri-Resources and Wilmar International each slipped nearly 2%.

Shanmugam said Singapore would use legal and regulatory measures to pressure companies, including through their access to financing and their standing with investors. “Companies cannot play hide and seek,” he said, cautioning firms against relying on separate corporate structures.

First Resources had described its zero-burning policy and firefighting efforts. Shanmugam called for evidence to support the company’s statement.

Fires in Indonesia have sent smoke across Singapore and Malaysia for weeks, disrupting businesses and daily life. Singapore’s air quality has reached levels not seen since 2015. Schools in Johor, Malaysia, have also closed as air quality reached unhealthy levels.

Singapore may examine whether companies potentially linked to the haze meet the standards for government grants or incentives. Shanmugam said the government could amend existing laws or introduce new ones urgently if needed to secure cooperation.

Asked whether Singapore’s actions could affect relations with Jakarta, Shanmugam dismissed the concern, saying people in both Singapore and Indonesia were suffering. He said Singapore’s actions aligned with the broad policies of Indonesian President Prabowo Subianto and that Singapore hoped to receive Indonesia’s full cooperation.