The Singapore International Arbitration Centre (SIAC) has established itself as one of the world’s leading arbitral institutions, attracting a growing number of cases from businesses and individuals around the world seeking efficient and effective dispute resolution.

With its reputation for speed, transparency, and enforceability of awards, SIAC has become one of the top choices for international businesses, particularly those with operations in Asia.

In this article, we will provide a brief overview of SIAC, its services, and key benefits to help you better understand the institution and its role in the international arbitration landscape.

A Brief Overview Of SIAC

SIAC was established in 1991 as a not-for-profit organization to provide a neutral and independent forum for dispute resolution. It was launched with the support of the Singapore government and the International Chamber of Commerce (ICC) as part of the government’s efforts to promote Singapore as a leading centre for international arbitration.

Since its establishment, SIAC has grown rapidly in terms of the number of cases administered, as well as the diversity and complexity of the disputes it handles. This growth has been fueled in part by the increasing popularity of arbitration as a preferred method of dispute resolution for international businesses, as well as by Singapore’s position as a hub for trade and investment in Asia.

The institution has also worked to develop its services and improve its efficiency, introducing new rules and procedures to streamline the arbitration process and make it more user-friendly. For example, in 2016, SIAC introduced a new set of rules aimed at speeding up the arbitration process and reducing costs, including provisions for early dismissal of claims and defences, as well as expedited procedures for cases below a certain threshold.

Today, SIAC is widely recognized as one of the world’s leading arbitral institutions, with a reputation for excellence, efficiency, and transparency and is widely regarded as the arbitral institution of choice by businesses and individuals around the world seeking a reliable and effective means of resolving disputes.

Why Choose Singapore or SIAC?

Pro-Arbitration Legal Framework

Through the Singapore International Arbitration Act (IAA), Singapore has a legal framework that is pro-arbitration, providing a supportive environment for businesses and individuals seeking to resolve disputes through arbitration.

More About The Singapore International Arbitration Act (IAA)

• The IAA provides a comprehensive legal framework for international arbitration in Singapore, covering all aspects of the arbitration process, including the conduct of arbitrations, the appointment of arbitrators, the enforcement of awards, and the relationship between arbitration and the courts.
• The IAA is designed to be pro-arbitration, providing a supportive legal environment for businesses and individuals seeking to resolve disputes through arbitration. The Act provides for limited court intervention in the arbitration process, with a presumption in favour of upholding arbitration agreements and awards.
• International Recognition: The IAA is recognized internationally as a leading piece of legislation governing international arbitration. It is based on the UNCITRAL Model Law on International Commercial Arbitration and is widely respected by arbitration practitioners and institutions around the world.

The Role Of The Singapore Judicial System In International Arbitration Proceedings

The Singaporean judicial system is a vital component of Singapore’s thriving international arbitration landscape. Its critical role in supporting and upholding the arbitral process is reflected in several key areas, such as:

Enforcing Arbitration Agreements and Awards

Singaporean courts have a pro-arbitration stance and are generally reluctant to interfere with the arbitration process, and have a good track record in enforcing arbitration agreements and awards while providing assistance to distressed parties involved in arbitrations when necessary.

Supervising the Arbitration Process

While the courts generally do not intervene in the arbitration process, they may play a supervisory role to ensure that the process is fair and impartial:

Appointment of arbitrators

In cases where parties are unable to agree on the appointment of an arbitrator, the Singapore courts may step in to appoint an arbitrator on behalf of the parties:

• In the case of PT Prima International Development v Kempinski Hotels SA [2012] SGHC 19, the Singapore High Court appointed an arbitrator on behalf of the respondent after the claimant failed to appoint an arbitrator in accordance with the arbitration agreement.
• In the case of AKN and another v ALC and others [2015] SGHC 49, the Singapore High Court appointed an arbitrator on behalf of the claimants, after the respondents failed to appoint an arbitrator in accordance with the arbitration agreement.
• In the case of Larsen Oil and Gas Pte Ltd v Petroprod Ltd [2011] SGHC 182, the Singapore High Court appointed a third arbitrator to a tribunal that had already been formed, after the parties were unable to agree on the appointment of the third arbitrator.

Interim relief

Singapore courts may provide interim relief to parties involved in arbitrations, in the form of injunctions or court orders to preserve evidence, to support the arbitral process:

• In the case of PT Pukuafu Indah v Newmont Indonesia Ltd [2012] SGHC 187, the Singapore High Court granted an injunction to prevent Newmont Indonesia Ltd from proceeding with an international arbitration that was seated in Singapore, pending the outcome of a related court proceeding in Indonesia.
• In the case of BLC and others v BLB and another [2014] SGHC 18, the Singapore High Court granted an interim injunction to prevent the enforcement of an arbitration award, pending the outcome of a challenge to the award in Singapore courts.
• In the case of Kingsmen Creatives Ltd v Caesarstone Sdot-Yam Ltd [2016] SGHC 316, the Singapore High Court granted an interim injunction to prevent Caesarstone Sdot-Yam Ltd from invoking a termination clause in a contract, pending the outcome of an arbitration that was seated in Singapore.

Assistance with evidence

The courts may also provide assistance with the taking of evidence in arbitrations, including issuing subpoenas and enforcing orders to produce documents.

Challenge to an arbitrator

Parties may challenge the appointment of an arbitrator under certain circumstances, and the Singapore courts may hear such challenges to ensure that the arbitrator appointed is impartial and independent.

A Global Standard of Excellence That’s Acknowledged Worldwide

The international reputation and credibility of the SIAC’s established procedures, systems, and arbitration standards have been acknowledged and recognized by courts around the world, as demonstrated by the following cases:

• India’s Supreme Court: In the case of Reliance Industries Ltd v Union of India (2014) 7 SCC 603, the Indian Supreme Court upheld a SIAC award, rejecting the government’s challenge to the award on public policy grounds.
• High Court of Hong Kong: In the case of Gao Haiyan v Keeneye Holdings Ltd [2011] HKCFI 276, the High Court of Hong Kong enforced a SIAC award, upholding the standard of the SIAC’s arbitration process.
• Court of Appeal of New Zealand: In the case of Gageler v Lipton [2016] NZCA 637, the Court of Appeal of New Zealand upheld a SIAC award, citing the SIAC’s high standards and global reputation.
• Court of First Instance of Dubai: In the case of Qatar Islamic Bank v Sheikh Najib Bin Jassim Bin Faisal Al-Thani [2011] DIFC ARB 002, the Court of First Instance of Dubai upheld a SIAC award, citing the SIAC’s high standards and reputation.
• High Court of Malaysia: In the case of Jaya Sudhir a/l Jayaram v Nautical Supreme Sdn Bhd & Anor [2013] 1 LNS 1368, the High Court of Malaysia enforced a SIAC award, holding that the award was made in accordance with the SIAC’s established procedures and standards.

Diversity To Ensure Impartial and Independent Arbitration Proceedings

The SIAC is serious about diversity when it comes to arbitrators. As of August 2020, SIAC has 40 arbitrators from 28 different countries. The majority of these arbitrators have a legal background, and 80% have 20+ years of legal experience.

In addition, SIAC has chosen to publicly disclose the gender composition of its arbitrators, revealing that almost a third of SIAC arbitrators are female. This is significantly higher than the global average of female arbitrators, which stands at 15-20%.

In 2018, the SIAC has established the ‘Arbitrator Diversity Initiative’ (ADI), a ground-breaking programme that aims to increase the pool of qualified and diverse arbitrators. The ADI has trained over 900 arbitrators from around the world.

The Importance of Diversity In Arbitral Tribunals

• The importance of diversity in arbitral tribunals has been recognized by various international organizations, including the International Bar Association (IBA) and the United Nations Commission on International Trade Law (UNCITRAL).
• The IBA Guidelines on Conflicts of Interest in International Arbitration emphasize the importance of ensuring that arbitrators are independent and impartial, and recommend that tribunals be composed of arbitrators from different legal systems and cultures.
• The correlation between diverse tribunal composition and impartiality and independence in arbitration is well-established. Research has shown that diverse arbitrator panels are less susceptible to conscious or unconscious bias.
• This has been recognized by various studies and reports, including the Queen Mary University of London’s International Arbitration Survey 2021, which found that the perceived impartiality and independence of an arbitral tribunal was influenced by the diversity of its composition:

“The data indicates that diversity plays an important role in the perceived independence and impartiality of arbitral tribunals, suggesting that arbitration institutions should continue to strive for greater diversity in their appointments.”

Cost Effective and Transparent Rules

Transparent Fee Schedule

This provides predictability and certainty to parties as to the cost of arbitration. The SIAC fee schedule is based on the amount in dispute and is set out in the SIAC Rules.

Expedited Procedure

The Expedited Procedure is a special, ‘fast-track’ procedure that is available by application in SIAC arbitrations. Under the Expedited Procedure, the tribunal can render an award on parties’ arbitration within 6 months from the date of initiation of the case.

Moreover, the Expedited Procedure also allows a party to apply for the appointment by SIAC of an emergency arbitrator, prior to the appointment of the tribunal, solely for the purpose of granting urgent interim measures.

The SIAC’s Expedited Procedure is designed to provide an efficient and cost-effective method for resolving disputes involving smaller claims, and applies to disputes where the amount in dispute is less than SGD 6 million or where parties agree to its application.

Electronic Filing

The electronic filing system allows parties to file documents and make payments online and reduces the time and cost involved in physical filings, allowing parties to access case information easily.

Cost Consequences

SIAC’s rules provide for the allocation of costs, which can encourage parties to settle disputes at an earlier stage. The cost consequences of delaying or prolonging the arbitration process can be significant, which may motivate parties to reach a settlement.

Using The SIAC Model Clause When Creating A Contract

When contracting for SIAC arbitration, parties should be aware of the various considerations that can affect the arbitration process. The SIAC model clause is recommended when drafting the arbitration provision of your contract. The SIAC model clause provides a standardised approach to arbitration that is designed to promote efficiency and fairness. The following (non-exhaustive list) are some important factors to consider when contracting for SIAC arbitration:

Seat of arbitration

The arbitration clause should specify the seat of arbitration. This is the legal jurisdiction where the arbitration will be conducted, and can have an impact on the enforceability of the arbitration award.

Governing law

Parties should consider including a governing law clause in their contract, which specifies the law that will govern the contractual relationship.

Number of arbitrators

The arbitration clause should specify the number of arbitrators that will sit on the tribunal. This can affect the cost and efficiency of the arbitration process.

For assistance in drafting dispute resolution clauses for SIAC arbitration, please contact us with your enquiries.

Conclusion

SIAC offers efficient and cost-effective arbitration services to businesses and individuals considering arbitration proceedings.

Singapore, with its pro-arbitration legal framework and support from the judicial system, allows SIAC to provide a neutral and independent forum for resolving disputes. Its commitment to diversity and transparency, along with its established procedures and standards, make SIAC a strong contender for your arbitration proceedings.