Singapore is fast becoming a centre of choice for international arbitrators seeking neutral ground, as the significant increase in international cases involving non-Singaporean companies being heard in the Lion City shows.
According to Drew & Napier director, Senior Counsel Cavinder Bull – who was also recently named incoming deputy chaof the Singapore International Arbitration Centre (SIAC) – a number of factors have contributed to the increasing popularity of arbitration as a method of resolution, as well as to the growth in volume of arbitration work taking place in Singapore.
“The Singapore government’s move to liberalise the legal services industry [in conjunction with] the opening of a dedicated arbitration facility has made Singapore a real hub for arbitral activity and a focal point for an increase in arbitration volume,” Bull said.
The Maxwell Chambers opened in Singapore last year, housing the SIAC as a key tenant. In addition, the representative offices of a number of foreign arbitral associations, two international barrister chambers as well as 15 hearing chambers for arbitration case proceedings make the facility a ‘one-stop shop’ for arbitration.
As a signatory to the New York Convention of Enforcement of Arbitral Awards, any arbitral awards granted in Singapore are enforceable in all countries signed up to the convention – now numbering past 140. ““This means that an arbitral award in Singapore is more easily enforceable than a court order in numerous countries,” Bull said. “And this, I believe, is a driver for the increase in the popularity of arbitration as a method of dispute resolution."
The two trends that Bull has seen over the past two years are a significant increase in number of cases the SIAC hears; and a notable increase in non-Singapore-related arbitration cases heard in Singapore.
“What we are seeing is a steady upward trend of arbitration cases being heard in Singapore and by the SIAC where neither party is Singaporean,” Bull said.
Between 2000 and Aug 2010, SIAC handled 554 international arbitrations, 70% of which were international or non-Singaporean cases. Parties from 40 different nationalities were involved.
“Parties which want to have a neutral place – in many cases, neither party want to go into the other‘s backyard – have found Singapore as a good choice to arbitrate their disputes. Whilst the New York Convention and arbitration friendly legislation in Singapore have provided the foundation, the recent increase in activity is attributable to additional developments like liberalisation and the opening of facilities in Singapore,” Bull said.ALB
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