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In Singapore, international arbitration is regulated by the Singapore International Arbitration Act (IAA) which first came into force on 1 January 1995. The IAA was enacted to provide a legal framework for the conduct of international arbitration proceedings in Singapore, aligning its practices with international standards and promoting Singapore as a preferred destination for international arbitration. Principally, the IAA did so by adopting the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration 1985 (Model Law).
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With the 30th anniversary of the coming into force of the IAA, the Singapore International Dispute Resolution Academy (SIDRA) was commissioned by the Singapore Ministry of Law to embark on a research project. The project considers to what extent the IAA remains state of the art, in support of Singapore as one of the top choices by parties to seat their international arbitrations. The review, among others, draws upon the newly proposed revisions to the English Arbitration Act (EAA) and compare developments in other leading arbitration jurisdictions. The full Report can be downloaded here:
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Specifically, SIDRA was commissioned to examine the following issues:
Issue 1:
Whether to confer on the court the power to make costs orders for the arbitral proceedings following a successful setting aside.
Issue 2:
Whether separate costs principles are necessary in setting aside applications.
Issue 3:
Whether to introduce a leave requirement for appeals to the Court of Appeal following an unsuccessful application to set aside an arbitral award in the High Court.
Issue 4:
Whether the time limit to file a setting aside application should be reduced.
Issue 5:
Whether a right of appeal (including variations of the same) on questions of law is desirable.
Issue 6:
How to ascertain the governing law of the arbitration agreement.
Issue 7:
Whether the review of the tribunal’s jurisdiction should be conducted by way of an appeal or a rehearing.
Issue 8:
Summary disposal.
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In terms of the methodology adopted, SIDRA convened a team of adjunct researchers (comprising dispute resolution practitioners) to deliberate, research and produce a draft Report. The draft Report was circulated to a focus group comprising practitioners, arbitrators, institutions, and in-house counsel. A discussion between SIDRA and the focus group was convened to collate views and feedback. SIDRA’s final Report records and incorporates the views and feedback received from the focus group.
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Each of the issues above constitutes a chapter in SIDRA’s Report. By way of summary, SIDRA’s recommendations on each of the issues are as follows:
Issue 1:
We recommend enacting an express provision in the IAA giving the courts the discretion to make an order in respect of only the costs of the arbitration proceedings following a successful set-aside application; the courts’ discretion will extend to apportioning, but not varying, the arbitral tribunal fees and institutional fees. We further recommend that the courts should also have the discretion to remit the issue of the costs of the arbitration proceedings, but remission should only be ordered as an exceptional remedy when (a) all parties to the award agree to the remission; and (b) it is in the interests of justice to do so.
Issue 2:
We do not recommend any reform to the IAA. Separate costs principles are not necessary for unsuccessful applications to set aside international arbitral awards in Singapore. The costs regime in the SICC typically allows a successful respondent in a setting-aside application to recover more than what it would if costs were assessed at the High Court on a standard or indemnity basis. As the SICC grows to hear more international arbitration-related disputes, the issue of whether indemnity costs should be imposed as a default for setting-aside applications will become less relevant.
Issue 3:
We recommend a more straightforward rule where parties must obtain permission of the appellate court to appeal against any decision of the High Court on both setting aside and resisting enforcement applications (whether successful or otherwise). The appellate court shall grant any permission to appeal without a hearing unless it is of the view that a hearing is required.
Issue 4:
We do not recommend reducing the three-month time limit for setting aside applications. We also do not recommend giving the courts general discretion to extend the time limit. However, we recommend enacting a new provision in the IAA giving the courts discretion to extend the time limit in setting aside applications involving fraud or corruption under section 24(a) of the IAA.
Issue 5:
We recommend that the IAA should be amended to provide parties with an opt-in right to appeal to the court on points of law. The Ministry of Law’s 2019 proposal should be adopted with modifications, such as:
- expressly requiring appeals to be decided on the basis of the findings of fact in the award;
- defining questions of law to expressly include questions of foreign and international law;
- preventing an automatic waiver of the right of appeal under institutional rules;
- making provision for the costs of the court and arbitral proceedings; and
- providing that applications for permission to further appeal from the High Court shall be determined by the appellate court.
Issue 6:
We recommend that Singapore should enact a new statutory choice of law approach for determining the governing law of an arbitration agreement to replace the existing Singapore common law approach. The new provision should provide as follows:
Law applicable to arbitration agreement
- The law to which the parties have subjected their arbitration agreement shall be the law that the parties expressly designate as applicable to the arbitration agreement.
- In the absence of an express designation under subsection (1), the law to which the parties have subjected their arbitration agreement shall, subject to contrary agreement, be the law that the parties expressly designate as applicable to any contract which contains that arbitration agreement. If no law has been expressly designated by the parties as applcable to any contract which contains the arbitration agreement, subsection (3) shall apply.
- In all other cases, the law applicable to the arbitration agreement shall be the law of the seat of arbitration.
- In the absence of (i) any agreement between the parties on a seat; and (ii) any rules of arbitration agreed to or adopted by the parties which provides for a default seat, the General Division of the High Court (or the appellate court) may, for the purposes of subsection (3), determine the seat of arbitration by having regard to the circumstances of the case, including the convenience of the parties.
Issue 7:
On the standard of review, we recommend that a tribunal’s ruling on jurisdiction should continue to be subject to a rehearing before the courts (instead of an appeal), without any deference granted to the tribunal’s findings. Insofar as the scope of review is concerned, parties should not have an unfettered right to introduce new evidence. Instead, the court should have the discretion to decide what evidence to receive and how the evidence is to be received, whether by way of affidavit or viva voce. Whilst we do not recommend any changes to the IAA, we recommend the introduction of new Rules of Court requiring parties to identify new arguments and new evidence sought to be introduced before the courts.
Issue 8:
We recommend that section 19A of the IAA should be amended to expressly provide that the arbitral tribunal has the power to summarily dispose of matters in dispute by way of an award, unless the parties agree that the arbitral tribunal shall not have such a power, along the following lines:
Awards made on different issues and summary determination
19A.—(1) Unless otherwise agreed by the parties, the arbitral tribunal may:
(a) make more than one award at different points in time during the arbitral proceedings on different aspects of the matters to be determined; or
(b) make one or more awards on a summary basis.
(2) The arbitral tribunal may, in particular, make an award relating to —
(a) an issue affecting a claim or defence; or
(b) a part only or the whole of the claim, counterclaim, cross‑claim or defence, which is submitted to it for decision.
(3) If the arbitral tribunal makes an award under this section, it must specify in its award, the issue, claim or defence, which is the subject matter of the award.
(4) For the purposes of sub-section (1), an arbitral tribunal makes an award on a summary basis in relation to an issue, claim or defence if the tribunal has exercised its powers under Article 19 of the Model Law with a view to expediting the proceedings on that issue, claim or defence. [underline added]
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The principal author of the Report is A/Prof Darius Chan, Deputy Director of SIDRA. He led a team of co-authors comprising the following (in alphabetical order of their last names):
- Su Jin Chandran
- Louis Lau
- Nicholas Poon
- Sidharrth Rajagopal
- Joel Soon
- Robbie Tan
- Teo Jim Yang
- Zhang Yuying
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All views (and any errors) are the authors’ alone and should not be attributed to their respective organisations.
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SIDRA records its deep appreciation and gratitude to members of the focus group in contributing their time and views to the development of this Report. They are named in Annex E of the Report. In this connection, SIDRA acknowledges the assistance of the Singapore Corporate Counsel Association in nominating in-house counsel to the focus group.
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SIDRA gratefully acknowledges the support provided by the Singapore Ministry of Law.



