SINGAPORE – Plantation company TSH Resources has yet to respond publicly to queries from the Singapore Exchange over fires in Indonesia amid growing attention on agribusiness firms’ operations as transboundary haze affects the region.
The company, which has a primary listing on Bursa Malaysia and a secondary listing in Singapore, had not published a response as at 6pm on Oct 20. It also did not respond to queries from The Straits Times.
In response to ST’s queries, a spokesperson for Singapore Exchange Regulation (SGX RegCo) said it was engaging TSH Resources to seek information on the impact of the fires on its operations, and would require the company to disclose any material information.
Under SGX’s regulatory framework, companies with secondary listings in Singapore are required to simultaneously publish on SGX website any announcements made in their home markets.
Unlike companies primarily listed in Singapore, those with secondary listings generally follow the rules of their home exchanges, although SGX may impose additional requirements.
ST has contacted Bursa Malaysia to ask whether it has queried TSH Resources.
Recent bourse filings, including one on Oct 20, showed that TSH Resources had been buying back its own shares.
TSH Resources was among seven listed companies named by Senior Minister K. Shanmugam during a media doorstop on Oct 19 as having received queries from SGX.
He said companies could not just rely solely on statements about their fire prevention policies. The Government would ask for the full facts from companies, seeking evidence on where the fires started, who owned the affected land and what steps were taken to contain them.
In response to his remarks, First Resources said on Oct 20 that it welcomed a thorough, evidence-based examination of the ongoing fires and haze situation, and reiterated that it strictly enforces a longstanding zero-burning policy across its operations.
It said it is confident that an objective review of the available evidence would show that it does not clear land using fire, either directly or indirectly.
It added that it was open to constructive suggestions from regulators, customers, investors, civil society organisations and other industry stakeholders on strengthening fire prevention and management.
Other companies including Golden-Agri Resources, Indofood Agri, Kencana Agri, Wilmar and Bumitama Agri had not published additional statements, after responding to SGX’s queries last week.
Indonesia-listed companies
The Indonesia Stock Exchange has also queried listed companies over the fires and haze, prompting disclosures on their fire prevention measures and the impact on their operations.
Most of the companies said the fires had not materially affected their operations or financial performance.
Among those who have responded were Astra Agro Lestari, PP London Sumatra Indonesia and Salim Ivomas Pratama, which have ownership links to Singapore-listed companies.
Astra Agro Lestari said in an Oct 16 disclosure that fire mitigation protocols were in place across its concessions. But the company acknowledged that its subsidiary, Subur Agro Makmur, located in South Kalimantan, had been affected by forest and land fires.
The company, which is controlled by Astra International, a subsidiary of Singapore-listed Jardine Cycle & Carriage, said the fires had not resulted in any operational shutdowns or materially affected its production targets or financial performance. It also noted that the fires had been extinguished.
Astro Agro Lestari also noted that employees at the Subur Agro Makmur were being questioned by law enforcement authorities, although the company said it had not received any “administrative sanctions” over the incident.
Meanwhile, PP London Sumatra Indonesia (LSIP) said on Oct 15 that it was monitoring its operating areas in Sumatra and Kalimantan, with no unplanned shutdowns or material asset write-downs arising from forest fires.
It added that it strictly enforced a zero-burning policy and used mechanical methods to clear unproductive plantation areas.
LSIP is majority-owned by fellow Indonesia-listed plantation company Salim Ivomas Pratama, which is in turn controlled by Singapore-listed Indofood Agri.
In a separate disclosure on Oct 15, Salim Ivomas Pratama said it strictly enforced a zero-burning policy and used mechanical methods to clear unproductive plantation areas.
The company said its plantations were also equipped with firefighting vehicles and equipment, while designated employees underwent regular training in fire prevention and emergency response.
It added that it had not experienced any material business interruptions or adverse operational impacts from the fires.
Other Indonesia-listed companies, including Dharma Satya Nusantara, Jhonlin Agro Raya, Nusantara Sawit Sejahtera Tbk and Alamtri Minerals Indonesia, also issued disclosures outlining their fire prevention measures and reporting no material impact on their operations from the fires.
