Malaysia Still Investigating Allegations Against Plantation Companies Over Indonesian Fires

Malaysia has yet to find conclusive evidence that plantation companies linked to Malaysian interests caused forest fires in Indonesia, Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup said.

The Natural Resources and Environmental Sustainability Ministry and the Plantation and Commodities Ministry are examining the allegations, which have renewed concerns over cross-border haze and the environmental impact of plantation operations. Arthur stressed that any party proven responsible for causing haze pollution would face action under the applicable laws.

Government Examines Legal Options for Cross-Border Haze

Arthur was responding to questions in Parliament about possible legislation to tackle transboundary haze and hold responsible companies accountable.

He said proposals to restrict financing for companies found responsible would require further study, including the legal basis, evidentiary standards, jurisdiction and potential effects on the financial sector. Malaysia has also repeatedly considered whether to introduce a specific Transboundary Haze Pollution Act, but investigations across national borders present significant challenges.

ASEAN Agreement Has No Dedicated Compensation Mechanism

The minister said the ASEAN Agreement on Transboundary Haze Pollution does not currently provide a specific mechanism for countries to claim compensation from one another.

Malaysia remains open to exploring other legal avenues, subject to international law. Arthur added that a comprehensive assessment of haze-related economic losses, including effects on public health, productivity and business activity, would help guide future policy decisions.

Malaysia says there is no conclusive evidence linking its plantation companies to Indonesian forest fires, while investigations continue.