Singapore has introduced proposed amendments to its Transboundary Haze Pollution Act (THPA), seeking to strengthen enforcement against companies linked to forest fires that could cause haze pollution in the country.
The Bill, tabled under a certificate of urgency signed by the President, would expand the investigative powers of environmental authorities and increase the maximum financial penalties for offending companies tenfold.
The proposed changes would also allow the government to intervene before air pollution reaches unhealthy levels, replacing the current requirement that certain pollution thresholds must be exceeded before enforcement action can begin.
Environmental Authorities to Gain Wider Investigative Powers
Under the proposed legislation, the Director-General of Environmental Protection would be authorised to require companies suspected of involvement in haze pollution to appoint independent assessors from the private sector.
Companies that fail to comply with such directives could face fines of up to $20 million upon conviction.
The Bill also seeks to address difficulties in taking legal action against companies based outside Singapore. Authorities would be permitted to serve legal documents electronically, including through email, or by publishing notices on the National Environment Agency’s website and in the media.
The Deputy-General of Environmental Protection and authorised officers would also receive powers to arrest individuals in Singapore to secure their cooperation with investigations.
Additionally, court proceedings could continue in Singapore even when the accused parties are located outside the country.
Companies Face Stricter Requirements to Avoid Liability
The proposed amendments would make it more difficult for companies to rely on existing legal defences when facing allegations of responsibility for fires linked to haze pollution.
Under the current law, companies may avoid liability where fires result from natural disasters, acts of war or individuals acting without the company‘s knowledge, provided reasonable preventive measures were taken.
The new Bill would require companies relying on the third-party defence to establish two conditions: that the fire was caused by someone acting without their knowledge and that they had taken reasonable steps to prevent and combat the fire.
Maximum Daily Fines to Increase to $1 Million
The legislation proposes raising the daily fine for companies that cause or contribute to haze pollution from $100,000 to $1 million.
The overall maximum penalty would also increase from $2 million to $20 million.
Courts would additionally be allowed to impose financial penalties calculated according to the profits gained or losses avoided by companies through their offending activities.
Government Could Restrict Business Dealings With Designated Companies
The proposed law would give the Minister for Sustainability and the Environment authority to designate companies based on convictions, suspected offences, failure to comply with official notices or adverse assessment reports.
Once a company has been designated, the government could issue orders restricting other businesses from dealing with it.
These restrictions could include prohibitions on providing financial services. Oversight of the financial measures would fall under the minister responsible for the Monetary Authority of Singapore.
Supply Chain Businesses Could Face Additional Penalties
The proposed sanctions would also extend to companies maintaining commercial relationships with designated entities.
Businesses such as retailers could receive notices concerning their dealings with companies subject to restrictions.
Those that violate the orders could face fines of up to $1 million for each offence, with additional penalties of $100,000 for every day that non-compliance continues.
Proposed Law Introduces Action Based on Risk of Haze
One of the most significant changes would be the introduction of the concept of “risk of haze” into the legislation.
This would allow Singaporean authorities to take action against companies linked to fires outside the country where those fires could potentially cause haze pollution in Singapore.
Under the existing framework, the Act can be triggered only after the Pollutant Standards Index (PSI) remains within the unhealthy range for 24 hours.
The proposed amendment would remove that requirement, allowing authorities to intervene before pollution reaches the specified threshold.
