Singapore-listed First Resources points to El Nino, says haze-linked fires were outside its operations

SINGAPORE: Singapore-listed palm oil producer First Resources pointed to this year's El Nino event and fires concentrated in regions where it does not operate in response to queries about its links to the ongoing haze.

The company, along with First Borneo Plantations and Bumitama Agri, was identified in an Oct 5 Greenpeace report as being associated with companies whose plantation concessions are contributing to the haze.

Plantation concessions are areas of land that a company is allowed to use or develop, likely for palm oil planting in this case.

Amid worsening haze conditions and intensifying scrutiny, First Resources on Thursday (Oct 15) said effective fire risk management remains a top priority for the group.

The company added that it implements robust fire prevention, monitoring and firefighting measures throughout its operations.

"In recent months, fire risk across West Kalimantan has been significantly heightened due to prolonged dry conditions associated with the 2026 El Nino event," said First Resources.

It added that the number of hotspots has declined sharply over the last few weeks.

Current hotspots, said First Resources, are "largely concentrated in regions where the group does not operate".  

The company will work with the government, local communities and other stakeholders to mitigate fire risks and support suppression efforts, it added.

In a separate statement released on SGX on Thursday, First Resources said there have been cases of fires originating outside its boundaries spreading into areas under its management.

Some of these fires were "too massive and fast-spreading to be fully contained" despite its efforts to do so, the company said. 

"The presence of hotspots within a concession should not, in itself, be interpreted as an indication that the concession holder caused, initiated or condoned a fire," it added.

CNA has reached out to First Borneo Plantations and Bumitama Agri with queries. Both companies have not yet responded.

POSSIBILITY OF LEGAL ACTION?

Prime Minister Lawrence Wong on Thursday said Singapore is looking into which companies may be responsible for the forest and peatland fires in Indonesia.

"Where warranted, we will take action under Singapore's Transboundary Haze Pollution Act, and explore joint action with other countries," he said in a social media post.

The Act, which came into effect in 2014, allows authorities to take legal action against companies responsible for causing or contributing to haze pollution in Singapore, even if their activities take place overseas.

Minister for Sustainability and the Environment Grace Fu said on Wednesday that Singapore was keeping its options open on taking action under the Act, while collecting and reviewing data on the situation.

In 2015, the National Environment Agency (NEA) identified fires on concession lands associated with six companies and issued legal notices to them under the Transboundary Haze Pollution Act.

Investigations into four of the six companies remain ongoing, NEA said in response to CNA's queries this week. 

"As such, NEA is unable to disclose further details," a spokesperson said.

The companies are PT Bumi Andalas Permai, PT Bumi Mekar Hijau, PT Sebangun Bumi Andalas Woods Industries and PT Rimba Hutani Mas.

Indonesian Foreign Minister Arrmanatha Nasir said on Thursday that President Prabowo Subianto has approved foreign assistance to tackle forest and land fires that have worsened the regional haze crisis, according to local media reports.