Singapore-listed First Resources welcomes authorities' probe over haze links, including on-ground checks

SINGAPORE: Palm oil producer First Resources said on Tuesday (Oct 20) that it welcomes on-the-ground inspections by the authorities as well as documentary and technical reviews, adding that it fully supports a "thorough, evidence-based examination of facts" into the ongoing haze situation.

In a filing on the Singapore Exchange, the company said it is confident that an objective review of the available evidence will prove that it does not engage in any land clearing by fire, whether directly or indirectly.

Such evidence may include the chronology of hotspot detections and fire progression based on satellite imagery, documentary evidence of action taken to suppress and extinguish fires and spatial analyses showing the continued protection of conservation areas, said First Resources.

Noting "recent statements regarding the Singapore Government's intention to pursue all available legal and regulatory measures" against haze-linked businesses, First Resources said it welcomes documentary, technical and on-the-ground checks where necessary to provide context and support an accurate understanding of the situation. 

The company was referring to statements by Singapore's leaders, including Prime Minister Lawrence Wong and Senior Minister K Shanmugam, signalling the country's intention to take legal action against companies responsible for the fires causing the haze.

Last week, Mr Wong said Singapore will take action under its Transboundary Haze Pollution Act where warranted. The National Environment Agency (NEA) has since issued haze prevention notices to 10 companies. 

On Monday, Mr Shanmugam said Singapore will use "every legal and regulatory lever at our disposal to exert pressure where it matters", including on companies' bottom lines and access to financing.

Mr Shanmugam on Monday acknowledged First Resources' prior statements on its zero-burning policy and its firefighting efforts, but said statements alone are insufficient and must be backed by evidence.

"We will ask for the full facts and we will act based on the facts," he said.

Denying its responsibility in the ongoing haze, First Resources said on Tuesday that it has a longstanding zero-burning policy, which is strictly enforced across its operations, and is committed to transparency and accountability.

"We believe that any assessment of the source of fires should be based on verified facts, scientific evidence and a comprehensive understanding of the circumstances on the ground," the company said.

It added that the group remains open to constructive suggestions on how collective efforts to prevent and manage fires can be further strengthened.

"Addressing the complex challenge of transboundary haze requires sustained collaboration among governments, companies, local communities and other stakeholders," said First Resources. 

CNA has reached out to NEA on whether the agency intends to take up First Resources' invitation for inspections.

First Resources was established in 1992 and has been listed in Singapore since 2007. It manages more than 200,000 hectares of oil palm plantations, including in North Sumatra and West Kalimantan.

The company was first named in an Oct 5 Greenpeace report as being linked to companies whose plantation concessions were contributing to the current haze season.

In response to queries from the Indonesia Stock Exchange, the company said over the weekend that forest and land fire incidents have not had a significant impact on its production targets.

First Resources' share price on the Singapore bourse has tumbled more than 10 per cent since it was named in the Greenpeace report. On Tuesday, the stock closed at S$3.74 (US$2.93) per share.