Singapore set to leverage on growth in international arbitration
By LYNETTE KHOO
INTERNATIONAL arbitration in Asia is set to gather pace in the coming years on the back of booming regional economic growth and sizzling cross-border agreements. And Singapore is poised to leverage on this, Deputy Prime Minister and Minister for Law S Jayakumar said.
Addressing about 100 international legal specialists gathered for the biannual meeting of the International Chamber of Commerce Commission on Arbitration (ICC) yesterday, Dr Jayakumar noted that international arbitration has entered exciting times, particularly in Asia where international commercial arbitration has become a big industry.
For instance in China, the number of arbitration commissions there has swelled to 180 from just one institution before 1995, while many Asian arbitral institutions have also seen a surge in the cases that they administer.
‘International arbitration in Asia is set to grow even faster in the years to come, and Asia will be the new focal point for international arbitration work,’ Dr Jayakumar said.
This is bolstered by surging Asian economic growth, spearheaded by China and India, and the increasing number and complexity of cross-border agreements taking place in the region.
The resurgent Asian economies and their increasing sophistication are expected to translate into a rise in international commercial disputes and growing acceptance of arbitration as a form of dispute resolution, Dr Jayakumar said.
‘The time is ripe to place Asia on the world map of international arbitration,’ he added.
Citing factors ranging from its strategic geographic location, cultural familiarity and a conducive legal infrastructure, Dr Jayakumar said Singapore is poised to leverage on the regional growth in international arbitration.
Singapore has based its arbitration regime on the United Nations Commission on International Trade Law and is also a signatory to the New York Convention.
‘Our judiciary, which has a high international standing and a strong tradition in observing the rule of law, sees arbitration in its rightful place alongside the entire suite of dispute resolution mechanisms, and therefore provides maximum judicial support for arbitration while imposing minimum intervention,’ Dr Jayakumar said.
‘Furthermore, our Commonwealth heritage and cosmopolitan legal fraternity give us an abundance of quality counsel for arbitration using both New York law and English law.’
He noted that Singapore law is also gradually becoming the preferred regional choice of law particularly for parties familiar with the common law tradition.
According to figures from the ICC, Singapore is the most popular venue for international arbitration in Asia and the sixth most popular venue in the world, after Paris, Geneva, London, Zurich and New York.
Law firms in Singapore have also reported a steady growth in international arbitration caseload and hence, are increasing their number of lawyers handling arbitration work.
Meanwhile, the government has also helped nurture the legal environment for industry players to flourish, Dr Jayakumar said.
To this end, the government provides tax incentives to foreign arbitrators for their income earned from arbitration work in Singapore, and foreign lawyers have complete freedom to practise regardless of the governing law of the contract in dispute.
To meet the needs of high-end arbitration work, an arbitration complex housing a full suite of facilities such as a state-of-the-art hearing room as well as renowned international arbitration institutions will be ready by mid-2009.
So far, the American Arbitration Association and the Permanent Court of Arbitration have committed to set up regional offices in Singapore.
In the area of enhancing the quality of legal talent, the government has allowed the opening of a second law school and more initiatives will be introduced in the coming years, Dr Jayakumar said.
Source : Straits Times - 15 Oct 2007
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