The Singapore International Arbitration Centre (SIAC) has unveiled the 7th edition of its Arbitration Rules, effective 1 January 2025. These rules apply to arbitrations commenced on or after this date, unless otherwise agreed by parties. The 2025 Rules demonstrates SIAC’s commitment to procedural efficiency, fairness, transparency, and user-friendliness by introducing innovative mechanisms aligned with global standards.
Key Deviations from Draft Rules
Three notable deviations from the draft rules published for consultation in August 2023 are:
- Absence of presumption for consent to publish decisions unless objected to in writing;
- Exclusion of a mandate for diversity and inclusion principles in arbitrator appointments; and
- Removal of a challenge ground for arbitrators based on failure to act as per the Rules or prescribed timelines.
10 Key Features of the 2025 SIAC Rules
- Streamlined Procedure
Designed for disputes of low monetary value, the Streamlined Procedure under Rule 13 and of the Arbitration Rules of the Singapore International Arbitration Centre, 7th Edition, 1 January 2025 (“SIAC Rules 2025”) is applicable to disputes where the amount in dispute in arbitration does not exceedSGD1 million or if parties have agreed to apply the Streamlined Procedure prior to the constitution of the tribunal. Its notable aspects include:
- Sole Arbitrator: A sole arbitrator shall be appointed for all streamlined procedure arbitrations. The rules set out for Streamlined Procedure under the SIAC Rules 2025 will take precedence over the arbitration agreement, including an agreement for multi-member tribunals.
- More Expeditious: The sole arbitrator must be nominated within three days and the award must be issued within three months from the date of the constitution of the tribunal
- Cost Efficiency: The new rules cap the SIAC’s administrative and the arbitrator’s fees at 50%. This streamlined process supports cost-effective resolutions for smaller claims.
- Default position: Rule 13 provides that the Streamlined Procedure will be the default position where criteria have been met, unless parties agree otherwise by agreement in writing. Further, it is open for the parties to apply to the President of the Court of SIAC for a determination that the Streamlined Procedure should not apply,
- Expanded Expedited Procedure
Under Rule 14 of the SIAC Rules 2025, the monetary ceiling for expedited procedures has been raised from SGD6 million to SGD10 million, introducing a floor limit of SGD1 million due to the Streamlined Procedure. This expansion ensures swifter resolutions for lower mid-value disputes. A sole arbitrator is appointed notwithstanding an agreement for a multi-member tribunal, and with the final award must be issued within six months from the date of constitution of the tribunal, promoting arbitration efficiency.
- Preliminary Determination
Tribunals can now render final and binding preliminary decisions on key legal or factual issues, reducing time and costs. Applications must demonstrate potential savings and efficiency, with tribunals issuing decisions within 90 days of application filing.
- Emergency Arbitrator Procedures
The SIAC Rules 2025 enhances emergency arbitrator provisions by permitting applications for the appointment of an Emergency Arbitrator before submitting a Notice of Arbitration, provided they are submitted within seven days. Emergency Arbitrators can issue interim protective measures, including preliminary protection orders, within tight timelines (24 hours), ensuring urgent ex-parte relief for parties.
- Early Dismissal of Claims and Defences
Tribunals can dismiss claims or defences that are manifestly without merit or outside their jurisdiction. Early dismissal decisions are mandated within 45 days of application filing.
- Security for Costs and Claims
Parties can now seek separate applications for costs and claims security. Tribunals may issue consequential directions if parties fail to comply with orders and may modify or revoke orders based on material changes. This provision ensures fairness and adherence to international standards.
- Coordinated Proceedings
Rule 17 of the SIAC Rules 2025 allows tribunals to coordinate related arbitrations involving common legal or factual issues, enabling concurrent or sequential hearings. This innovation is particularly valuable for interconnected contracts or multi-party disputes, promoting procedural coherence.
- Third-Party Funding Transparency
Mandatory disclosures of third-party funding arrangements now apply, including funder identity and the funding agreement to ascertain the funders interest in the outcome of the proceedings and whether the funder has committed to undertake adverse cost liability. To prevent conflicts, tribunals may direct parties to withdraw funding agreements entered into post-tribunal constitution. These rules enhance arbitration integrity and transparency.
- Supporting Amicable Resolution
Parties may now comment on the adoption of amicable dispute resolution methods such as mediation in their Notice of Arbitration and Response to the Notice of Arbitration.[24] Further, Tribunals must consult parties on settlement prospects at the first case management conference and may suspend proceedings to promote amicable resolutions, reflecting SIAC’s balanced approach to effective dispute resolution.
- Award Timelines
Tribunals must propose award submission timelines within 30 days of final submissions (written or oral), with a 90-day outer limit for making the award from the date of the last directed submission. These changes foster predictability and timeliness in the arbitral process.
Conclusion
The SIAC Rules 2025 represent a comprehensive overhaul of SIAC’s arbitration framework, emphasizing efficiency, transparency, and adaptability. By incorporating user feedback and aligning with international best practices, SIAC continues to set benchmarks in arbitration excellence.
Parties engaging in SIAC arbitrations should familiarize themselves with the SIAC Rules 2025 to maximize the benefits of this forward-looking framework. Parties should also consider the effects of the SIAC Rules 2025 on their concluded SIAC arbitration agreements.
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