Singapore-listed plantation stocks under OCBC's coverage could potentially face regulatory and reputational overhang, analyst Ada Lim says, referring to the forest fires in Indonesia. Regional agribusinesses could face higher funding costs and steeper sustainability risk premiums in the long term, Lim adds, as Singaporean and Indonesian authorities could expand investigations into possible illegal land clearing and slash-and-burn practices.

However, weather-related risks are expected to temper palm oil production growth and yields heading into 2027, Lim writes in a note. Against this backdrop, palm oil prices will likely remain well-supported. OCBC maintains hold ratings for Bumitama Agri, Wilmar International and Golden Agri-Resources.