The facts. The Monetary Authority of Singapore published a statement on 28 October 2026 setting out its expectations for banks on the management of haze-related environmental risks. MAS expects banks to identify, assess, manage and monitor material environmental risks arising from their activities and exposures, including risks associated with pollution and deforestation. In doing so, banks are expected to take into consideration relevant information released by the National Environment Agency under the Transboundary Haze Pollution Act.
Where customers may be linked to activities contributing to haze, banks should engage them to understand their role and involvement, including whether adequate measures are in place to prevent, detect and stop fires. Where heightened environmental risks are identified, banks should take appropriate measures to mitigate the risks. These may include imposing conditions, reviewing financing terms, limiting further exposures or reassessing the customer relationship. Clear breaches of environmental laws would warrant stronger measures, including limiting exposures or exiting the relationship.
MAS expects banks to identify, assess, manage and monitor material environmental risks arising from their activities and exposures, including risks associated with pollution and deforestation.
This statement reinforces supervisory expectations already contained in the Guidelines on Environmental Risk Management issued in 2020 and further elaborated in the Guidelines on Transition Planning issued in March 2026. In light of the current situation, MAS has reinforced these supervisory expectations with banks.
What it means. For institutional investors and banks operating in Singapore the reinforcement clarifies the scope of existing environmental risk expectations without altering mandate eligibility, reporting deadlines or capital terms.