Following hot on the heels of modernising amendments made to Singapore's International Arbitration Act ("IAA") at the beginning of last year1, the SIAC published a new set of rules earlier last summer2 (the "Rules"). Adopting a similar theme to that of the revised IAA, the new Rules have been amended with a view to reflecting current international arbitral practice, in particular in order to improve the speed and efficiency of arbitration in Singapore. The principal amendments are:

  • Expedited Procedure3

    Provided the SIAC Chairman agrees, in cases where (i) the amount at stake does not exceed SGD 5 million (i.e. about GBP 2.5 million); or (ii) all parties agree; or (iii) where there are exceptional circumstances; the time limits under the Rules may be shortened and the case may be determined by a sole arbitrator who is only required to state reasons in summary form. Where the expedited procedure applies, an award must be made within six months from appointment of the sole arbitrator.
  • Emergency Procedure4

    In circumstances where parties require emergency relief prior to the constitution of a tribunal, the SIAC Chairman may appoint an emergency arbitrator within one business day of an application. The emergency arbitrator must establish a schedule for consideration of the party's application within two business days of appointment and has the power to order any interim relief deemed necessary. Once a tribunal has been constituted the emergency arbitrator loses all power to act and any interim order or award issued may be revisited by the tribunal. In any event, any order or award issued by the emergency arbitrator will cease to be binding if a tribunal is not constituted within 90 days of such interim relief being granted.
  • Transfer of Powers to Tribunal

    Various powers have been transferred from the SIAC Registrar to the tribunal. Most notably, this includes the power to decide the seat of the arbitration where the parties have not been able to agree this between themselves.5 In addition, a tribunal is now vested with the power to order a hearing for the presentation of oral evidence and submissions, even if not requested by the parties.6
  • Removal of Memorandum of Issues7

    In an attempt to reduce the number of procedural stages in arbitration, parties are now no longer required to agree and sign a memorandum of issues setting out the key issues to be determined. While this may be a useful exercise in some disputes, it is no longer a requirement.

It is hoped that these and other changes will help to enhance Singapore's growing reputation as a preferred jurisdiction for arbitration. The aim is to build on Singapore's already well established position as the trading hub for the region; a stable political and financial system; a familiar common law legal system; and its proximity to globally important but still developing economies such as India, Indonesia, Malaysia, Thailand, Vietnam and China. Indeed, there is evidence that Singapore's efforts to develop its arbitration industry are already working. Between 2000 and 2005 the number of new cases handled by SIAC each year numbered in the 60s and 70s, rising to an average of 92 between 2006 and 2008. In 2009, the total number of new cases rose to 160. This is a dramatic increase which is likely to be sustained thanks to both the introduction of SIAC's new Rules and a more user-friendly and efficient approach to procedural issues.

Footnotes

1. The International Arbitration Act was amended as of 1 January 2010

2. Effective from 1 July 2010

3. Article 5 of the Rules

4. Article 26 and schedule 1 of the Rules

5. Article 18 of the Rules

6. Article 21 of the Rules

7. Article 17 of the Rules

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.