Jakarta, ThedailyID — Malaysia has denied allegations that companies linked to the country were involved in Indonesia’s forest and land fires. However, the government is considering legal options to seek compensation from Indonesia over haze pollution affecting its territory.
Malaysian Natural Resources and Environmental Sustainability Minister Arthur Joseph Kurup said there was no conclusive evidence that Malaysian-linked plantation companies operating in Indonesia were responsible for the fires.
Kurup said his ministry had reviewed the issue alongside the Ministry of Plantation and Commodities.
“Based on the review so far, there is no conclusive evidence that plantation companies with links to Malaysia are responsible for the fires,” Kurup said, according to Malaysian outlet The Star.
He added that proposals to restrict funding for companies proven responsible would require further examination, including their legal basis, evidentiary standards, jurisdiction, and implications for the financial sector.
The statement follows findings from the Indonesian environmental organization Wahana Lingkungan Hidup Indonesia (Walhi), which identified 21 Malaysia-linked companies allegedly involved in Indonesia’s forest and land fires between January and December 2026. The findings appeared in its report, Who Are Behind the Fires.
Kurup also said Malaysia had repeatedly assessed the need for legislation similar to Singapore’s Transboundary Haze Pollution Act to address cross-border air pollution and hold responsible companies accountable.
The minister said the government was open to examining international legal mechanisms that could support compensation claims for transboundary haze damage. However, the existing ASEAN Agreement on Transboundary Haze Pollution does not provide a specific mechanism for international compensation claims, according to Free Malaysia Today.
Kurup said a comprehensive assessment of the haze’s effects on public health, productivity, and economic activity would help determine the government’s next steps.
On October 15, Malaysian Member of Parliament Lim Guan Eng proposed establishing a permanent ASEAN task force to address cross-border haze. The proposed initiative would involve cooperation among Singapore, the Philippines, and Indonesia, supported by year-round rescue teams ready to respond to forest fires.
Lim said the current crisis had intensified, with fires affecting an estimated 300,000 hectares in Indonesia this year, around 70% more than in 2023.
