First Resources haze response cites El Niño and hotspots
First Resources said El Niño and prolonged dry conditions had heightened fire risks in West Kalimantan, while many current hotspots were outside its operating…
Fires linked to Indonesian plantation concessions have brought fresh scrutiny to Singapore-listed palm oil companies as haze conditions worsen. In its first resources haze response, First Resources cited the 2026 El Nino event and said current hotspots were largely in regions where it does not operate.
The company was among firms associated with plantation concessions named in an Oct 5 Greenpeace report on fires contributing to the haze. First Resources shares fell as much as 9.1 per cent to S$3.71 after trading opened on the Singapore Exchange on Friday, before later recovering to S$3.89.
The market reaction came as Singapore said it was reviewing which companies may be responsible for forest and peatland fires in Indonesia. Prime Minister Lawrence Wong said the government could take action under the Transboundary Haze Pollution Act where warranted.
First Resources cites heightened fire risk
First Resources said prolonged dry conditions associated with the 2026 El Nino event had significantly heightened fire risk across West Kalimantan in recent months. The company also said the number of hotspots had declined sharply over the last few weeks.
“In recent months, fire risk across West Kalimantan has been significantly heightened due to prolonged dry conditions associated with the 2026 El Nino event,” the company said.
It described effective fire risk management as a top priority and said it carries out fire prevention, monitoring and firefighting measures throughout its operations. The company said it would work with the government, local communities and other stakeholders to reduce fire risks and support suppression efforts.
In a separate statement released on the Singapore Exchange on Thursday, First Resources said fires that began outside its boundaries had spread into areas under its management. Some, it said, were “too massive and fast-spreading to be fully contained” despite its efforts.
The company also cautioned against treating hotspots inside a concession as proof that its holder started or approved a fire. “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 said.
Singapore weighs enforcement as shares slide
First Resources, First Borneo Plantations and Bumitama Agri were identified in the Greenpeace report as associated with companies whose plantation concessions were contributing to the haze. The report named the firms in connection with concession areas; the report’s identification does not, on its own, establish that a company caused a fire.
CNA said it had contacted First Borneo Plantations and Bumitama Agri for comment, but neither had responded at the time of publication. Bumitama Agri shares fell 7.5 per cent to an intraday low of S$1.73, before settling at S$1.78. The company requested a trading halt on Friday.
Wong said Singapore was investigating which companies might be responsible for the fires. “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 Singapore authorities to pursue legal action against companies responsible for causing or contributing to haze pollution in Singapore, even when the activity takes place overseas. Sustainability and Environment Minister Grace Fu said on Wednesday that Singapore was keeping its options open while collecting and reviewing data on the situation.
For people affected by haze, the dispute over where fires began matters because Singapore’s potential enforcement depends on identifying companies responsible for pollution, including activity beyond its borders. The companies named in the Greenpeace report face heightened scrutiny, while First Resources says fires from outside its boundaries have spread into areas it manages.
First Resources shares later recovered to S$3.89.
Source: channelnewsasia.com
