Singapore Raises Maximum Haze Fine to S$20 Million and Expands Enforcement Powers

Singapore's Parliament passed amendments to the Transboundary Haze Pollution Act on November 4. The maximum fine for entities that cause or contribute to fires posing a risk of haze in Singapore rises from S$2 million to S$20 million. The daily fine increases from S$100,000 to S$1 million.

Minister for Sustainability and the Environment Grace Fu said the changes are not a silver bullet. International cooperation remains necessary. The bill passed unanimously after a debate that lasted about six hours and involved 24 members of parliament.

The amendments give the Director-General of Environmental Protection the power to require entities with suspected links to haze to appoint expert private-sector assessors at their own expense. Those assessors report directly to the National Environment Agency. The agency will then decide whether further action is needed.

The government can also designate entities or individuals who have been convicted, who are reasonably suspected of conduct that constitutes an offence, or who have failed to comply with directions. Designation allows the minister to restrict business dealings, including purchases, sales, loans and other financial support.

The law now covers the risk of haze, not only actual pollution that has already reached Singapore. Smoke moving toward the country is presumed to pose a risk unless the entity proves otherwise. A certificate from the director-general confirming that risk will be conclusive evidence in court.

Defences have been narrowed. Entities can no longer argue that haze resulted solely from a grave natural disaster or an act of war. A company that blames another party must show that the person was unrelated, acted without its knowledge or consent, and that it took all reasonable measures to prevent the conduct and to fight the fire.

Singapore experienced its worst air quality in more than a decade in recent months. The 24-hour Pollutant Standards Index entered the very unhealthy range. The bill was introduced under a Certificate of Urgency, allowing all readings in one sitting. Fu said evidence in ongoing investigations could be lost or altered if action were delayed.

The National Environment Agency has open cases under the existing law. Fu told Parliament that three firms implicated in the current haze episode had also been linked to earlier incidents. Past actions will be considered as investigations continue. The new offences and penalties do not apply retroactively.

A civil penalty route has been added. With the public prosecutor's consent, the agency can seek a civil penalty of up to S$10 million. Courts may also impose an additional penalty equal to profits gained or losses avoided through the offence.

The original Transboundary Haze Pollution Act came into force in 2014. Enforcement has been limited by the difficulty of gathering evidence across borders and by complex corporate structures. The new tools are intended to address those obstacles. Fu said the government will still have to satisfy the court that all elements of an offence are met.

Members of Parliament raised questions about the size of the fine, the potential impact on businesses, and how the expanded powers will be used. Fu said the maximum fine will not always be imposed. Penalties will depend on the circumstances of each case. The aim is to remove the economic incentive for non-compliance.

The amendments expand the geographic reach of the act to conduct outside Singapore that causes or contributes to land or forest fires posing a risk of haze in Singapore. Documents can now be served electronically, including through the agency's website or the news media.