Govt empowered to restrict business dealings of errant entities in proposed THPA amendment

In an effort to strengthen haze deterrence measures, the government is proposing to expand the tools to hold companies accountable, including giving the power to designate errant entities and impose orders restricting business dealings. Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, Grace Fu, announced the Transboundary Haze Pollution (Amendment) Bill in parliament on Nov. 4. She noted that these proposed restrictions may include the supply or purchase of goods and services or the provision of loans and other support. Entities or individuals that do business with designated entities will face a maximum fine of S$1 million for each contravention, and an additional fine of up to S$100,000 each day the contravention continues in the proposed amendment, said Fu. This comes after over 30 Members of Parliament (MPs) and Nominated Members of Parliament (NMPs) asked for oral answers to their questions posed on Singapore's legal, regulatory and economic responses to the haze. Designation as deterrence measure Fu said the proposed restrictions will not solely be administered by the Ministry of Sustainability and the Environment (MSE) if the restrictions concern services provided by financial institutions, with the Monetary Authority of Singapore (MAS) determining and administering relevant orders. She noted that the power to designate and impose restrictions is meant to impose economic consequences on those responsible or those with established links to irresponsible burning. "At the same time, the prohibitions ensure that others do not deal with such designated entities, including through complex business arrangements or corporate structures." Notices Fu added that designation may not be sufficient and submitted that the government will also introduce "a power to put certain entities on notice not to deal with entities that cause or contribute to fires posing a risk of haze pollution in Singapore". As it may not be practical for the government to identify every entity involved in burning or supply chains. This prevents entities with relevant connections to burning activities, like large corporations in forestry and agriculture, from dealing with those who cause or contribute to the haze. Entities put on notice will be required to ensure that supply chains and business arrangements do not involve designated entities, with failure to comply without a reasonable excuse being an offence. Fu noted that the obligations are "intended to strengthen due diligence and responsible business conduct across the supply chain". "The objective is not to impose an impossible guarantee that no risk will ever arise, but to ensure that companies do not turn a blind eye to irresponsible forestry and agricultural practices." NEA will also be given the power to publicise lists of entities that have not complied with notices or directions issued under the Act, or who have been given a direction to appoint an assessor, among others, in the proposed amendment. Other penalties The maximum fine for entities found guilty of causing or contributing to the haze will increase tenfold to S$1 million per day in the proposed Transboundary Haze Pollution (Amendment) Bill, with an aggregate cap of S$20 million for the main offence. Prior to the amendment, entities found guilty under the Transboundary Haze Pollution Act (THPA) 2014 faced a maximum fine of S$100,000 for every day of haze pollution in Singapore, with a cap of S$2 million.