Harita Nickel has removed coal power data from its website following a complaint to SGX, raising transparency concerns. Market Forces has called for an investigation.
The wider picture
The complaint filed by Market Forces centres on OCBC’s financing of companies linked to Harita’s nickel complex on Obi Island, Indonesia. This situation has drawn attention due to the significant role that coal power plays in Harita Nickel’s operations. Currently, Harita Nickel operates approximately 910 MW of coal power capacity and has plans to expand this capacity to around 1,670 MW. The recent actions taken by Harita Nickel have raised questions about transparency and corporate governance in the sector.
In a notable development, Harita Nickel removed coal power data from its website shortly after Market Forces lodged a complaint with the Singapore Exchange (SGX) regarding potential misleading conduct by OCBC. Binbin Mariana, a representative from Market Forces, expressed concern over this sudden change, stating, “It’s very concerning that following our complaint to the Singapore Exchange regarding potential misleading conduct by OCBC over its funding for Harita Nickel Group, the Indonesian company removed public disclosures regarding its coal power operations.” This statement highlights the apprehension surrounding the integrity of information provided by companies involved in environmentally sensitive industries.
Mariana further elaborated, saying, “This sudden reduction in transparency is a red flag, and Singapore’s regulators need to investigate why this data was scrubbed shortly after being cited in a formal complaint.” The implications of such actions could be significant, as they may affect investor confidence and regulatory scrutiny of both Harita Nickel and OCBC.
In the broader context, the financial performance of major banks in Singapore, such as DBS Group, continues to be robust despite these controversies. DBS Group reported a net profit of S$11.0 billion for FY2025, with a dividend yield of 5.6% based on a total dividend of S$3.06 per share. This financial stability reflects a strong investment environment in Singapore, which may be contrasted with the challenges faced by companies like Harita Nickel.
Other real estate investment trusts (REITs) in Singapore, such as CapitaLand Ascendas REIT and Mapletree Logistics Trust, are also performing well, with dividend yields of 5.9% and 6.2%, respectively. Frasers Centrepoint Trust boasts a near-perfect occupancy rate of 99.9% and offers a yield of 5.5%. Meanwhile, HRnetGroup maintains a healthy cash position of S$262.9 million with zero debt, reflecting a cautious approach to financial management amid market uncertainties.
Jean-Philippe Malé, a market observer, commented on the overall stability of the market, stating, “The market continues to function smoothly, and that speaks to the depth of investment in infrastructure in Singapore.” This sentiment underscores the resilience of Singapore’s financial ecosystem, even as specific sectors face scrutiny.
As the situation unfolds, observers are keenly watching how Singapore’s regulators will respond to the allegations against OCBC and the actions of Harita Nickel. The potential for increased oversight and regulatory measures could reshape the landscape for companies involved in coal power and other environmentally impactful industries. Details remain unconfirmed regarding the next steps that regulators may take, but the call for transparency and accountability is likely to resonate within the industry.
