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Malaysia urged to use procurement power against haze-causing firms

An opposition leader has called on the government to leverage its purchasing power and business incentives to penalise companies responsible for transboundary haze. The proposal includes banning offending firms from government contracts and public disclosure of their identities.

LSN Malaysia · 17 October 2026

Malaysia urged to use procurement power against haze-causing firms

Lee Chean Chung, a former Member of Parliament, has suggested that Malaysia deploy economic measures to combat recurring haze episodes linked to agricultural fires in the region. Speaking through the Bersama coalition, Lee outlined a multi-pronged approach targeting companies whose operations contribute to transboundary air pollution.

The proposal seeks to restrict companies involved in fire-related haze from accessing government procurement contracts, obtaining business certifications, and receiving tax incentives or subsidies. Lee also recommended that authorities maintain and publicise a registry of such companies to increase transparency and accountability.

Malaysia has long grappled with seasonal haze, predominantly originating from land-clearing fires in neighbouring Indonesia. While diplomatic efforts and cross-border cooperation frameworks exist, critics argue that enforcement remains inconsistent and economic deterrents for polluting companies remain limited.

By weaponising government purchasing power—a significant economic lever—Malaysia could theoretically encourage corporate compliance with environmental standards and discourage practices that generate transboundary smoke. Such measures would complement existing regional agreements and domestic air quality regulations.

The government has not yet responded to the proposal, which reflects growing frustration among opposition figures and civil society groups over the persistence of haze-related air pollution affecting public health across Malaysia.