Arbitration has become a preferred method of resolving disputes in Singapore, offering a private, efficient, and enforceable alternative to court litigation. But what types of cases are best suited for arbitration?
Below, we explore common disputes that are ideal for arbitration and walk through the arbitration process in Singapore.
Disputes Suitable for Arbitration
Arbitration is commonly used for commercial disputes where confidentiality, speed, and expertise are essential. These include:
Commercial and Contractual Disputes
- Business-to-business conflicts involving contractual breaches, service agreements, or non-performance.
- Disputes over payment terms, service quality, or contract interpretation.
Construction and Infrastructure Disputes
- Disagreements over project delays, defective work, or cost overruns.
- Conflicts between contractors, subcontractors, and developers.
Corporate and Shareholder Disputes
- Disputes over shareholder agreements, directorial responsibilities, or partnership dissolutions.
- Breaches of fiduciary duties within a corporation.
International Trade and Investment Disputes
- Cross-border disputes involving foreign investors and local entities.
- Conflicts related to international business transactions.
Intellectual Property Disputes
- Issues concerning trademarks, patents, and licensing agreements.
- Confidentiality and proprietary rights breaches.
Maritime and Shipping Disputes
- Conflicts involving charter agreements, cargo claims, or shipbuilding contracts.
The Arbitration Process in Singapore
Singapore has established itself as a leading arbitration hub, thanks to the Singapore International Arbitration Centre (SIAC) and a pro-arbitration legal framework. Here’s how the process typically unfolds:
Step 1: Agreement to Arbitrate
- Arbitration is only possible if both parties have agreed to it, usually through an arbitration clause in a contract or a post-dispute agreement.
- The agreement outlines key details such as the number of arbitrators, governing law, and arbitration rules.
Step 2: Commencing Arbitration
- The claimant submits a Notice of Arbitration to the SIAC or other arbitral institution.
- The respondent is given a timeframe to file a response.
Step 3: Appointment of Arbitrators
- Parties may agree on a single arbitrator or a tribunal of three arbitrators.
- If there is no agreement, the institution administering the arbitration will appoint arbitrators based on the rules in place.
Step 4: Preliminary Proceedings
- A preliminary meeting is held to set the timeline and procedures.
- Both parties may submit statements detailing their claims and defences.
Step 5: Evidence and Hearing
- The process includes exchanging documents, witness statements, and expert reports.
- Hearings may be conducted in person or virtually, where both parties present their case.
Step 6: Award and Enforcement
- The tribunal issues a binding arbitration award, typically enforceable in over 170 countries under the New York Convention.
- The award is final and cannot be appealed except in limited circumstances, such as procedural irregularities.
Why Choose Arbitration in Singapore?
- Confidentiality – Arbitration proceedings are private, making them ideal for sensitive commercial disputes.
- Efficiency – Arbitrations are generally faster than litigation in court.
- Expert Decision-Making – Arbitrators with industry expertise can resolve complex technical disputes.
- Enforceability – Singapore’s pro-arbitration framework ensures awards are widely recognised and enforced internationally. Singapore is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which means that arbitration awards made in Singapore are enforceable in more than 170 countries. This makes Singapore an attractive choice for businesses engaging in cross-border transactions and international investments, ensuring that arbitration awards can be upheld globally.
Arbitration is an effective dispute resolution mechanism for many types of commercial and contractual conflicts in Singapore. Whether dealing with a business dispute, construction delay, or international trade conflict, arbitration offers a structured, fair, and enforceable process.
If you are considering arbitration, seeking legal guidance can help ensure that your rights and interests are protected throughout the process.
For more information on arbitration in Singapore, consult with our legal professionals who can provide tailored advice based on your specific situation.
