Arbitration in Singapore: An Overview
Introduction
Singaporean arbitration is known across the world for its efficiency, confidentiality, and flexibility. As a global hub for international arbitration, Singapore offers a robust legal framework and a supportive environment for both domestic and international arbitration. This article provides an overview of arbitration in Singapore, including the legal framework, key features, and the processes for enforcement and appeals.
Legal Framework
Singapore's arbitration landscape is governed by two primary statutes: the Arbitration Act (for domestic arbitration) and the International Arbitration Act (for international arbitration). The International Arbitration Act incorporates the UNCITRAL Model Law (with the exception of Chapter VIII) providing a comprehensive legal framework that aligns with international standards. The distinction between domestic and international arbitration ensures that the specific needs of each type of arbitration are adequately addressed.
The Singapore International Arbitration Centre (SIAC) is the most commonly chosen arbitral institution in Singapore, known for its efficient and effective administration of arbitration proceedings. Singapore operates under a common law jurisdiction, which influences its approach to arbitration and the application of legal principles.
Key Features of Arbitration in Singapore
The approach to disclosure in Singapore is largely left to the discretion of the arbitral tribunal. It is common for parties to agree that the IBA Rules on Taking Evidence in International Arbitration will apply, which generally results in a balanced approach to the disclosure of documents and the treatment of privileged information. Witness and expert evidence are also integral to arbitration in Singapore, with tribunals often relying on written and oral testimony to corroborate documentary evidence.
In civil arbitration, the burden of proof generally lies with the party making the claim, who must prove their case on a balance of probabilities. Once a party has established their claim, the evidentiary burden may shift to the other party to rebut or defend against the claim.
Orders for security for costs are relatively easy to enforce in Singapore, providing parties with assurance that they will be able to recover costs if they prevail in the arbitration.
The SIAC, established in 1991, plays a pivotal role in the arbitration landscape of Singapore, and is renowned for diligent case management. The SIAC maintains a panel of experienced arbitrators from diverse legal and cultural backgrounds. The institution takes on responsible for appointing arbitrators when parties are unable to agree on a selection, ensuring that the tribunal is impartial and qualified to handle the dispute.
Enforcement and Appeals
Singapore is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), which facilitates the enforcement of arbitral awards across jurisdictions. The Singapore courts are known for their pro-arbitration stance, making it relatively easy to enforce arbitral awards in the country.
The right to appeal an arbitral award in Singapore is limited, with the law precluding appeals unless the parties agree otherwise. Challenges to arbitral awards are also not easily entertained by the courts, reflecting the judiciary's support for arbitration. However, there have been successful challenges in recent years, particularly in cases involving breaches of natural justice.
Conclusion
Arbitration in Singapore offers a reliable and efficient method of dispute resolution, supported by a robust legal framework and a pro-arbitration judiciary. The distinction between domestic and international arbitration ensures that the specific needs of each type of arbitration are met, while the SIAC provides a reputable institution for the administration of arbitration proceedings. With its commitment to upholding the principles of arbitration and facilitating the enforcement of arbitral awards, Singapore continues to be a preferred destination for arbitration among international parties.
