Palm oil stocks slide after Singapore begins looking into which firms responsible for haze

On October 16, shares of palm oil producers experienced a decline following Singapore's Prime Minister Lawrence Wong's assertion on Facebook that the nation is investigating companies potentially responsible for haze-inducing fires. Wong pledged that Singapore would enforce its Transboundary Haze Pollution Act, if necessary, and also consider joint action with other nations.

On October 15, First Resources shares plummeted by 9.1% to $3.71, while Bumitama Agri plummeted by 7.5% to $1.73. Additionally, Golden Agri-Resources saw a decrease of up to 6.9% to $0.27. According to a Straits Times report on October 15, Greenpeace's recent investigation had identified First Resources and Bumitama Agri among entities with concessions areas linked to haze sources.

First Resources defended itself on October 15, asserting that fires detected within its Indonesian palm oil concessions were largely triggered by external blazes spreading over its boundaries. The company attributed heightened fire risks in West Kalimantan to a "severe" El Nino-induced drought. On October 15, Indonesia blamed peatland degradation by former food plantations for its worst wildfire season in 11 years, and announced its intention to restore its peat ecosystem.

Singapore's air quality deteriorated throughout the night, with the 24-hour Pollutant Standards Index reading in the central region reaching "very unhealthy" levels at midnight on October 16 and 227 at 9 am – a record high for the year. On October 14, Minister for Sustainability and the Environment Grace Fu stated that Singapore was "keeping its options open" regarding potential action against culpable companies under the Transboundary Haze Pollution Act.

This followed a statement from a National Environment Agency spokesperson, who mentioned that the agency "has been closely monitoring the haze situation, gathering information on fire hotspots, their sources, and their impact on Singapore's air quality."