Ex-Indonesian Minister Questions Singapore's Role In Haze Crisis, Divides Online Opinion

Former Indonesian Trade Minister Muhammad Lutfi has urged Singapore to investigate whether executives and decision-makers based here are linked to Indonesian companies whose land has been associated with fires that may have contributed to the haze, criticising the Government's issuance of preventive measure notices as insufficient.

In a video posted on social media, Lutfi questioned whether Singapore would pursue investigations into influential business figures with the same determination as it does against ordinary citizens, regardless of their wealth or connections.

Lutfi also pointed to Singapore's role as a regional hub for corporate headquarters, capital and decision-making, questioning whether companies benefiting from tax incentives for establishing operations here should face scrutiny over activities linked to haze pollution overseas.

He alleged that some palm oil groups could use Singapore-based holding companies and trading arms to shift profits from Indonesian plantations, raising questions about their tax arrangements. These allegations have not been independently established.

He then urged Singapore to go beyond issuing notices and pursue searches or legal action where the evidence justifies it, arguing that corporate headquarters and family offices should not be beyond scrutiny.

Lutfi's comments come after Senior Min. K. Shanmugam warned that Singapore would pursue companies linked to haze-causing fires in Indonesia for as long as necessary, using legal, regulatory and economic measures to hold them accountable.

Shanmugam said authorities could amend existing laws or introduce new legislation to secure greater cooperation from the companies. Potential measures could affect their finances, access to funding and standing with investors.

He added that Singapore would look beyond individual plantation operators to examine larger corporate groups and the people ultimately controlling them, warning that companies should not be able to evade scrutiny through complex corporate structure.

Authorities would also examine whether companies linked to the haze were receiving government grants or other incentives in Singapore, as well as whether banks were properly managing the environmental and legal risks of lending to them.