15．THE GROWTH OF ARBITRATION IN SINGAPORE
全国大会シンポジウム

THE GROWTH OF ARBITRATION IN
SINGAPORE
Lawrence Teh

Dentons Rodyk & Davidson LLP 1 Senior Partner

annual growth of 5% while economic

Headnotes

growth in the rest of the world was only
about 3%.3 The dynamism of the AsianThis article seeks to provide an insight oneconomy has led to an increase in thethe factors leading to the growth ofnumber and complexity of cross-border

arbitration in Singapore and the steps

disputes within Asia, and a heightened

taken to respond to the challenges poseddemand for dispute resolution

by an ever-changing businessinstitutions which are able to resolve

environment.

these disputes swiftly, efficiently andp r e d i c t a b l y. 4    T h i s h a s p r o v i d e dⅠ．INTRODUCTION- THE
21st CENTURY IS THE
ASIAN CENTURY

Singapore, which is strategically locatedwithin Southeast Asia, with aspringboard to develop itself into aworld-class centre for arbitration.

1.

Global trade continues to grow at a
rapid pace and a high proportion of thistrade and international capital has been
captured by Asia. For instance, in 2014,
Foreign Direct Investments (“FDI”) into

Ⅱ．HISTORICAL
DEVELOPMENT OF
ARBITRATION IN
SINGAPORE

Asia already accounted for about a thirdof global FDI.2 In 2013, the combined

A. Initial Stages

Association of Southeast Asian Nations(“ASEAN”) economies achieved an
1

2

3

4

150

2.

In the 20th century, arbitration was not

This paper is an expansion on the presentation given by the writer at the Academy for International BusinessTransactions annual conference on 11 November 2017 at the Hitotsubashi University of Japan. The writer is gratefulfor the assistance of Mr Kevin Chan and Mr Justin Wong, who are associates at Dentons Rodyk & Davidson LLP in
preparing the presentation and this paper.
See United Nations Conference on Trade and Development Press Release on 24 June 2014 <http://unctad.org/en/
pages/PressRelease.aspx>
See Opening Speech by Minister for Law, K Shanmugam at the In-House Counsel World Summit 2014 <https://www.
mlaw.gov.sg/content/minlaw/en/news/speeches> at para 9
See Chief Justice Sundaresh Menon, ‘Response by Chief Justice Sundaresh Menon’ (Opening of the Legal Year 2015, 5January 2015) <www.supremecourt.gov.sg/news/speeches> at para 20(a).

国際商取引学会年報 2018vol.20Lawrence Tehwidely accepted as an alternative to5.

When it began operations in 1991, thetraditional court based dispute

SIAC handled just two cases6. Between

resolution.

1991 and 2002, SIAC’s case load
managed to grow from about 20 cases

3.

Singapore’s first Arbitration Act was

per year to about 70 cases per year7.

enacted after its independence in 1965.

Even then, it was not as well-known as

However, this was simply a preservation

other venues or institutions in Asia8.

of the 1953 Arbitration Ordinance when
it was part of the Crown Colony that did
not distinguish between domestic and

B. Building on Singapore’s
strengths

international arbitrations. Even in 1986
when Singapore acceded to the6.

Singapore’s growth into a prime

Convention on the Recognition andlocation for arbitration in the Asia

Enforcement of Foreign Arbitral Awards

Pacific region must be understood inConcluded at New York on 10th Junelight of its general approach towards

1958 (“New York Convention”) andeconomic restructuring andenacted the Arbitration (Foreign Awards)

improvement. At the dawn of the 21st

Act (Cap 10A), there was no separate

century, the Singapore Ministry of Tradeframework for the conduct ofand Industry was already actively

arbitrations in Singapore involving

promoting and developing knowledge-

foreign elements.

5driven industries for Singapore to be abigger global business and investment

4.

The first impetus came in 1991 with the

hub. 9 The following characteristics

establishment of the Singapore

made Singapore particularly attractive

International Arbitration Centre (“SIAC”)

for foreign investments:-

to promote Singapore as a centre forarbitration which aims to meet the(a) E n g l i s h w a s t h e l a n g u a g e o fdemands of the international businessadministration, law and business incommunity for a neutral, efficient andSingapore;reliable resolution of disputes in Asia.

5
6

7

8
9

See Michael J. Moser and John Choong, “Asia Arbitration Handbook” at pp. 673-674
See Singapore Straits Times Articles published on 11 March 2017<http://www.straitstimes.com/singapore/arbitration-centre-hits-record-numbers>
See Professor Michael Pryles, Chairman, SIAC, “Singapore: The Hub of Arbitration in Asia” <http://siac.org.sg/en/201309-18-01-57-20/2013-09-22-00-27-02/articles/198-singapore-the-hub-of-arbitration-in-asia>
For example, Hong Kong
See Reports of the Economic Review Committee of the Ministry of Trade and Industry of the Republic of Singapore,
February 2003 <https://www.mti.gov.sg/ResearchRoom/Documents >国際商取引学会年報 2018vol.20151

15．THE GROWTH OF ARBITRATION IN SINGAPORE(b) Singapore was a trusted country for

trade barriers, it had an attractive

business, being voted consistently

regional headquarters and had been

as having a good businessa host to over 7,000 multinational

environment with stablef i r m s . 13 M u l t i n a t i o n a l s w e r egovernment and little political risk,

especially enticed by Singapore’s

a good legal and judicial system

trade connectivity with intra-Asian

10

regional businesses 14 such as its

and low corruption.

membership within ASEAN that(c) By reason of its geog raphicalafforded preferential tariffs forlocation in the heart of Southeast

trade with other member states.

Asia, Singapore was surrounded by
the countries of the region,(e) Last but not least, Singapore’s

including Indonesia, Malaysia, andcosmopolitan demography made it11

It had 6,600 scheduled

a comfortable place for people fromflights a week to 320 cities andall over the world to reside and tonearly all major cities in the Asia-

conduct their businesses.

Thailand.

Pacific such as China and India
were within a 7-hour flight. 12

7.

With these advantages, Singapore
promoted itself as a hub for dispute(d) Sing apore was a reg ional andresolution and marketed the SIAC as afinancial hub that served as aleading arbitral institution in the region

gateway between the East and West.

to countries such as China and India15.

With its open economy andbusiness environment with little

10

11

12
13
14

15

152

See Professor Michael Pryles, Chairman, SIAC, “Singapore: The Hub of Arbitration in Asia” <http://siac.org.sg/en/201309-18-01-57-20/2013-09-22-00-27-02/articles/198-singapore-the-hub-of-arbitration-in-asia>; Singapore is alsoranked no. 1 in Asia and no. 7 in the world for the least corrupt public sector based on the Corruption Perceptions
Index in 2016;
See Professor Michael Pryles, Chairman, SIAC, “Singapore: The Hub of Arbitration in Asia” <http://siac.org.sg/en/201309-18-01-57-20/2013-09-22-00-27-02/articles/198-singapore-the-hub-of-arbitration-in-asia>
See website of the SIAC <http://siac.org.sg/64-why-siac>
See website of the SIAC <http://siac.org.sg/64-why-siac>
Singapore is currently China’s 10th largest trading partner in terms of export sales (see <http://www.worldstopexports.
com/chinas-top-import-partners>); Singapore was also the top destination for overseas investment by Indian companies
in FY 08/09 (see Speech by Law Minister K Shanmugam at the "Arbitration for Indian Industry" Conference jointly
organised by the Singapore International Arbitration Centre and Confederation of Indian Industry <https://www.mlaw.
gov.sg/news/speeches/speech-by-law-minister-k-shanmugam-at-the-arbitration-for-indian-industry-conference-jointly.
html> at para 7
See for example, Speech by Law Minister K Shanmugam at the "Arbitration for Indian Industry" Conference jointly
organised by the Singapore International Arbitration Centre and Confederation of Indian Industry at <https://www.
mlaw.gov.sg/news/speeches/speech-by-law-minister-k-shanmugam-at-the-arbitration-for-indian-industry-conferencejointly.html>

国際商取引学会年報 2018vol.20Lawrence Teh

C. Pro-arbitration policy bylegislature and judiciary

10. Singapore therefore proceeded on adual arbitration regime. International
arbitrations were to be governed by the8.

The growth of arbitration in Singapore

International Arbitration Act (Cap 143A)

would not have been possible without(“IAA”) which was enacted in 1995 tothe ideal conditions provided bygive effect to both the Model Law andSingapore’s legal system and the active

the New York Convention. On the othersteps taken to foster a pro-arbitration

hand, domest ic arbitrat ions wereenvironment in Singapore.

governed by the Arbitration Act (Cap10A) (“AA”).

9.

In 1991, the Singapore government
considered the reform of local laws on
16

11. In 2004, amendments were made to theIts sub-

Legal Profession Act (Cap 161), allowing

committee appointed by the Attorney-

foreign lawyers who are not admitted toGeneral found that the United Nations

the Singapore bar to represent parties

Commission on International Trade Law

in arbitration proceedings even when(“UNCITRAL”) Model Law on

the substantive law involved in theInternational Commercial Arbitration

dispute is Singapore law.20

commercial arbitrat ion.

1985 (the “Model Law”) would appeal
to international businesses who are

12. The judiciary’s pro-arbitration stance isunfamiliar with the common law andobserved from the Singapore Court’s

17

aversion towards any interference withFreedom from curial intervention wasinternational arbitration. The Singapore

also desirable in international

courts would decline to set aside an

Eng lish concepts of arbitrat ion.

18

On the other hand, it wasarbitral award even where there arerecognized that the courts should haveerrors of law or fact by the tribunal.21

closer supervision on domestic

Enforcement of arbitral awards are also

arbitration so as to be able to uphold

only refused where it meets the highpublic policy considerations andthreshold of being able to “shock thenational interests involved in purely

conscience”, being “clearly injurious to19

the public good”, “wholly offensive”, and/arbitrations.

domestic disputes.

or violates the “most basic notion of
16
17
18
19
20
21

See Ahmad, Jawad; Yeap, Andre. "Section 2: Overviews - Arbitration in Asia". The Asia Pacific Arbitration Review 2014
See Singapore Parliamentary Reports, vol 63, col. 627, 31 October 1994.
See Sub-Committee on Review of Arbitration laws at para 12
See Sub-Committee on Review of Arbitration laws at para 13
See Legal Professional (Amendment) Bill 2004 (B17/2004)
See Quarella SpA v. Scelta Marble Australia Pty Ltd [2012] SGHC 166 at [51]-[54]国際商取引学会年報 2018vol.20153

15．THE GROWTH OF ARBITRATION IN SINGAPOREm o r a l i t y a n d j u s t i c e ”. 2 2 T h i s p r o -leader in law and to anchor regional

arbitration judicial policy was clearly

legal expertise in Singapore.24

articulated by the Singapore Court ofAppeal in Tjong Very Sumito and Others v
23

Antig Investments Pte Ltd :D. Singapore’s success as anarbitration centre“There was a time when arbitration

14. With a pro-arbitration environment inwas viewed disdainfully as an inferior

place, arbitrations administered by theprocess of justice. Those days are now

SIAC increased from about 70 cases inwell behind us. An unequivocal judicial

2003 to about 100 cases in 2008. The

policy of facilitating and promoting

first indication that the SIAC was readyarbitration has firmly taken root in

to take-off as a global arbitration centre

Singapore...“came in 2009 with the SIAC
administering 160 cases in that year.

13. Finally, credit ought to be given to the

The number of cases admistered by theprofessional training and accreditation

SIAC has not reduced since then and thebodies such as the Singapore Institute

SIAC saw itself administering 198 casesof Arbitrators (“SIArb”), the Charteredin 2010 and 188 cases in 2011.25

Institute of Arbitrators (“CIArb”) and

22
23
24

25

26

27

154

educational institutes such as the

15. B a s e d o n a 2 0 0 6 i n t e r n a t i o n a l

N a t i o n a l U n i ve r s i t y o f S i n g a p o r earbitration survey conducted by Queen(“NUS”) and the Singapore Management

Mary (University of London), a sizeable

University (“SMU”) which organize

number of respondents were alreadytalks, seminars, and training courses on

support ive of the development ofarbitration. The Ministry of Law has

stronger regional arbitration institutions

also supported the development ofsuch as the SIAC.26 By 2010, in the 3rd

specialized centres to further enhance

edition of the same survey, Singapore

Singapore's reputation as a thought

was reflected as being the regional

See PT Asuransi Jasa Indonesia (Persero) v Dexia Bank SA [2007] 1 SLR 597 at [59][2009] 4 SLR 732 at [28]For example, the Centre for Asian Legal Studies, the Centre for Banking and Finance Law, and the Centre for Law andBusiness  (See Speech by Minister for Law, K Shanmugam, during the Committee of Supply Debate 2017  <https://www.
mlaw.gov.sg/content/minlaw/en/news/parliamentary-speeches-and-responses/speech-by-minister-for-law--kshanmugam--during-the-committee-of0.html> at para 20-22)
See website of the SIAC <http://siac.org.sg/en/2013-09-18-01-57-20/2013-09-22-00-27-02/articles/198-singaporethe-hub-of-arbitration-in-asia>
See International Arbitration: Corporate attitudes and practices 2006
<http://www.arbitration.qmul.ac.uk/docs/123295.pdf>
See 2010 International Arbitration Survey: Choices in International Arbitration<http://www.arbitration.qmul.ac.uk/docs/123290.pdf>

国際商取引学会年報 2018vol.20Lawrence Tehleader in Asia and Singapore Law was

Resolution (“ICDR”), the London Court

popular as the governing law ofof International Arbitration (“LCIA”), the27

contracts.

World Intellectual Property
Organization Arbitration and Mediation

16. Within 5 years, the 6thEdition of theCentre Singapore Office (“WIPO”), andsame survey announced that, the SIAC

the Singapore Chamber of Maritime

was the most improved arbitration

Arbitration (“SCMA”) are also importantvenue and was one of the five most

players in Singapore’s arbitrationpreferred arbitral institutions in thelandscape.

world.

28

This was reflected in SIAC’s

increasing case load between 2012 and29

19. T h e S C M A i s a p r i m e e x a m p l e o f

In 2016, SIAC broke its own

industry-specific arbitration afforded inrecord with the total sum in dispute forSingapore. It was initially established in

all new case filings amounting to

2004 under the management of SIAC,

USD11.85 billion. This was 2.75 times

and subsequently reconstituted in May

the total sum in dispute of USD4.41

2009 as an independent institution in

2015.

30

billion in 2015.

response to the maritime industry’s
feedback on the incompatibility of

17. In May 2013, SIAC opened its firstadministered arbitration. The SCMA

overseas office in Mumbai, India. This

Rules are similar to that of the London

was subsequently followed by the

Maritime Arbitrators Association

setting up of offices in both Shanghai(“LMAA”) Rules. In this regard, theand South Korea and most recently in

SCMA does not administer the

Gujarat in August 2017.

arbitration, but is available to facilitate
the process when called upon to do so.

31

18. Notwithstanding the aforesaid, it has toAs such, no administration fees are

be highlighted that SIAC only

payable to the SCMA and parties are atadministers a fraction of international

liberty to select the tribunal from anarbitrations in Singapore. The otherinternational panel of maritime

main arbitration institutions such as thearbitrators, and even to reach an

International Chamber of Commerce

agreement on the tribunal’s fees.32(“ICC”) International Centre for Dispute
28

29

30
31
32

See 2015 International Arbitration Survey: Improvements and Innovations in International Arbitration <http://www.
arbitration.qmul.ac.uk/docs/164761.pdf>
SIAC administered 235 cases in 2012, 259 cases in 2013, 222 cases in 2014, 271 cases in 2015 and 343 cases in2016 (See SIAC Statistics <http://www.siac.org.sg/2014-11-03-13-33-43/facts-figures/statistics/64-why-siac>)
See SIAC Annual Report 2016 p 14
See Website of SCMA <https://www.scma.org.sg/about_us.html>
See SCMA Rules 3rd Edition 2015

国際商取引学会年報 2018vol.20155

15．THE GROWTH OF ARBITRATION IN SINGAPORE

20. On 28 June 2017, it was announced
that the International Court ofeither before or after LSAS arbitration
proceedings have commenced.36

Arbitration of the International Chamberof Commerce (“ICC Court”) will set up a

22. As gleaned from the above, it is evident

case management office in Singaporethat Singapore has within 10 years,

that is expected to commence operations

evolved into a world-renowned venue

33

This will

for the conduct of arbitration both inbe the ICC Court’s fourth overseas casethe domestic and international domains.

in the first quarter of 2018.

management office after Hong Kong,
New York and Brazil.34

Ⅲ．INFRASTRUCTURE
AND FACILITIES

21. Not forgetting the needs of domestic
arbitration, the Law Society of

23. To meet the demands for the conduct ofSing apore (“LawSoc”) Arbitrat ion

arbitrations in Singapore, an integrated

Scheme (“LSAS”) was launched in 2007.

dispute resolution complex was plannedThis scheme provides for cost-effective

in 2005. This culminated in the opening

and expedient commercial arbitration.  

of Maxwell Chambers37 on 21 January

The LSAS rules are designed to be2010 which is the home of SIAC as well

simple and flexible and parties canas other arbitral institutions such ase x p e c t t o h a ve a n a r b i t r a l a w a r d

W I P O, S C M A , a n d t h e I C C C o u r t .

published in 120 days from theMaxwell Chambers also houses thecommencement of arbitration. Parties

Singapore International Mediation

may even elect for the dispute to beCentre (“SIMC”), ICC Academy, CIArb,

determined based on documentaryand several other barristers chambers

evidence alone.

35

In March 2017, theand law firms.

Law Society Mediation Scheme (“LSMS”)

33

34

35
36
37
38
39

156

was initiated which complements the

24. Maxwell Chambers provides state-of-

LSAS and provides parties with thethe-art-facilities with fully equipped

option of having their disputes mediatedhearing rooms, preparation rooms,

See International Chamber of Commerce News 28 June 2017<https://iccwbo.org/media-wall/news-speeches/singapore-ministry-law-international-chamber-commerce-sign-mouboost-arbitration/>
See Singapore Ministry of Law Press Release 28 June 2017<https://www.mlaw.gov.sg/content/minlaw/en/news/press-releases/singapore-ministry-of-law-and-internationalchamber-of-commerce-.html>
See Law Society of Singapore Arbitration Scheme Handbook 2017 pp. 1-3
http://www.lawsociety.org.sg/For-Public/Dispute-Resolution-Schemes/Mediation-Scheme
Maxwell Chambers is located at 32 Maxwell Road, #03-01, Singapore 069115
See website of Maxwell Chambers <http://www.maxwell-chambers.com>
See Ross, Alison "Singapore: City state reflects on progress", Global Arbitration Review 2010

国際商取引学会年報 2018vol.20Lawrence Tehtranscription services, and even food &38

programme on international arbitration

It has been

f o r g o ve r n m e n t o f f i c i a l s , p r i v a t enominated by Global Arbitration Review

practitioners and legal academics that(“GAR”) as one of the “best developments”

blends theory, substant ive andbeverage options on site.

in the arbitration industry

39

as has beenprocedural law, and skills training.41

labelled as being “currently the gold
standard”.40

28. There is also an active forum known as
the Young SIAC (“YSIAC”) for legal

25. It is planned for Maxwell Chambers toprofessionals aged 40 years and under

triple its capacity by taking over a

to exchange expertise, ideas andneighbouring building in 2018. This will

experience in international arbitration.42

allow it to accommodate about 50 new
offices for international dispute
resolution institutions, arbitration

B. Responding to the market’s
needschambers, law firms and ancillary legal
services.

Ⅳ．GROWING AN ARBITRALTECHNOLOGY FOR THE
FUTURE AND OTHER
RECENT INITIATIVES

29. Singapore also recognizes the interestof preserving relationships, maintainingc o n f i d e n t i a l i t y, a n d a c h i e v i n g a n
expeditious resolution in commercial
disputes. With the opening of theSingapore International Mediation
Centre (“SIMC”) in 2014, the SIAC-SIMC

26. Initiatives are continuously being taken

Arb-Med-Arb Protocol (“AMA Protocol”)  

to meet the challenges of the future.

was launched which allows a stay ofarbitration proceedings administered by

A. Education and trainingt h e S I AC i n f a v o u r o f m e d i a t i o n
conducted by the SIMC. If mediation is

27. The Singapore International Arbitration

successful, parties can then record their

Academy was launched in 2012, and issettlement agreement before the arbitral

organised and conducted annually. It

tribunal as an enforceable consent

provides an intensive and in-depth

award.43

40
41

42

43

See Samuels, David "Hearing Centres Survey". Global Arbitration Review's Guide to Regional Arbitration 2013
See website of the National University of Singapore, Centre for International Law<https://cil.nus.edu.sg/research/international-dispute-resolution/topics/singapore-international-arbitration-academy>
See website of the SIAC <http://siac.org.sg/ysiac/about-us/ysiac-objectives>; The YSIAC also maintains an affiliate blog
on the Kluwer Arbitration Blog with the latest news on arbitration relating to Singapore.
See AMA Protocol  <http://simc.com.sg/siac-simc-arb-med-arb-protocol>

国際商取引学会年報 2018vol.20157

15．THE GROWTH OF ARBITRATION IN SINGAPORE

30. In addition, the Singapore International

unenforceable in Singapore despite

Commercial Court (“SICC”) was officiallybeing a feature in other leading

launched in 2015 which affords litigants

arbitration centres around the world. In

with well-designed court-based

recognizing that third-party funding

mechanism alongside with the flexibility

provided an additional means of

44

Comprising of a panel

financing valid claims that would notof specialist judges and international

have been otherwise pursued due tojudges from both common law and civil

financial constraints 48 , third-party

law jurisdictions, the SICC conducts its

funding is now made available forproceedings in open court and publishesinternational arbitrations conducted inits decisions. Yet, there is flexibility in

Singapore pursuant to the Civil Law

procedure. For instance, parties may(Amendment) Act 2017.49

of arbitration.

apply for proceedings to be heard incamera, and for court documents to be

Ⅴ．CONCLUSION

sealed.45 Questions of foreign law may,in appropriate situations, be determined

32. As illustrated by Singapore’s story on

based on legal submissions instead of

the growth of arbitration, size is nothaving to be proven as a matter ofeverything. A country’s strategy to its

46

Foreign counsel who aredevelopment as a dispute resolution

registered with the SICC may also

hub must cater to its own unique

47

characteristics. It must also be preparedfact.

represent a party in SICC proceedings.

to constantly adapt and stay responsive
31. Finally, legislative changes have beeneffected to boost Singapore’s

to the needs of the present and future
market.

competitive edge amidst stiffcompetition from other arbitration
centres around the world. Until 2016,agreements for third-party funding ofdispute resolution proceedings were

44
45
46
47
48

49

158

See website of the SICC <https://www.sicc.gov.sg/Home.aspx>
See Order 110 rule 30 of the Rules of Court (Cap 322)
See section 18L of the Supreme Court Judicature Act (Cap 322); Order 110 rule 25 of the Rules of Court (Cap 322)
See section 18M of the Supreme Court Judicature Act (Cap 322); Section 36P of the Legal Profession Act (Cap 161)
See Second Reading Speech by Senior Minister of State for Law, Indranee Rajah SC, on the Civil (Amendment) Bill 2016<https://www.mlaw.gov.sg/content/minlaw/en/news/parliamentary-speeches-and-responses/second-reading-speechby-senior-minister-of-state-for-law--indra3.html> at para 11- 12This is subject to certain regulatory controls stipulated in the accompanying Civil Law (Third Party Funding)Regulations 2017.

国際商取引学会年報 2018vol.20