Agricultural company shares in Singapore fall after authorities' haze warning — CNBC
In Singapore, shares of several agricultural companies declined after Senior Minister and Minister for Home Affairs K. Shanmugam said that businesses would not evade responsibility for a possible link to the haze that has blanketed the city-state. As CNBC reports, the Singapore Exchange contacted seven companies with inquiries about their operations and possible links to the haze.
Share decline
Bumitama Agri shares fell by as much as 6.5% during trading, while First Resources declined by up to 4.83%. Shares of Golden Agri Resources and Wilmar International fell by nearly 2%.
Shanmugam said that, according to available data, certain fire hotspots or sources of smoke may be linked to First Resources, Bumitama Agri and the unlisted company First Borneo Plantations. Other companies named by the minister include Golden Agri-Resources, Wilmar International, Kencana Agri, Indofood Agri and TSH Resources.
Possible government action
The minister stressed that companies should not use different corporate structures to evade responsibility. He also noted that statements about zero-burning policies and firefighting efforts are insufficient without evidence that they are being implemented.
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According to Shanmugam, the Singapore government is prepared to use available legal and regulatory mechanisms, including affecting companies' financial performance, their access to financing and their reputation among investors. If necessary, the country may urgently amend legislation or adopt new rules to ensure cooperation. Companies that may be linked to the haze will also be checked for compliance with requirements for receiving state grants or incentives.
Haze in the region
Over recent weeks, haze has affected daily life and business operations in Singapore and Malaysia. Air quality in Singapore reached levels not recorded since 2015. Schools were closed in Johor Bahru, Malaysia, due to unhealthy air pollution levels.
Shanmugam dismissed concerns that Singapore's actions against companies could complicate relations with Jakarta. He noted that Indonesia's population is also suffering from the haze, and that Singapore expects the full cooperation of the Indonesian authorities in responding to the activities of companies that may be involved in the problem.
