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JULIA YU COUNSEL, HEAD (NORTH EAST ASIA)
Agenda
I. Introduction to Singapore’s International Arbitration Framework and SIAC
II. Governance Structure at SIAC
III. SIAC Model Clauses
IV. Institutional Measures for Controlling Costs and Timelines under SIAC Rules
V. Recent Trends at SIAC
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Economic Developments in Asia
• Emergence of global economic players, such as Asian economies of China,
India, Indonesia, Japan and Korea, as well as ASEAN.
• Asia leading the world in terms of economic growth.
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-10%
-5%
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012
Ye
ar-
on
-Ye
ar
Gro
wth
Year
GDP Growth Rate in Asia (2007 - 2012)
World
Asia
Asean-5: Indonesia, Malaysia, Philippines, Singapore and Thailand
Source: IMF WEO Database (Oct 2013); International Business Times (Mar 2014)
100
105
110
115
120
125
130
2012
2013
120,0
128,4
121,1
117,6
GD
P in
Billi
on
s U
SD
Year
China & ASEAN 5 GDP (2012/13)
ASEAN 5
China
Potential for International Arbitration
• High trade flows in Asia lead to an increase in number and complexity of cross-
border commercial disputes.
4 Source: 2014 UNCTAD World Investment Report
0
50
100
150
200
250
300
350
Africa Latin America and the
Caribbean
Asia Transition Economies
FDI outflows, by region, 2009-2013 (Billions of dollars)
2009
2010
2011
2012
2013 0
50
100
150
200
250
300
350
400
450
500
Africa Latin America and the
Caribbean
Asia Transition Economies
FDI inflows, by region, 2009-2013 (Billions of dollars)
2009
2010
2011
2012
2013
Singapore’s Framework
• ‘The Hub of all trades’ - excellent infrastructure and connectivity
• UNCITRAL Model Law adopted in International Arbitration Act (international arbitrations) and
Arbitration Act (domestic arbitrations) – Parties are free to opt-in / opt-out
• World’s 3rd most popular seat; most preferred seat in Asia
2010 International Arbitration Survey: Choices in International Arbitration By Queen Mary, University of London
• Judiciary that provides maximum support and minimal intervention in arbitral proceedings
• Total freedom of choice of counsel and law firms
• Enforceability of Awards rendered in Singapore in over 150 countries under the New York
Convention 1958
• World renowned facilities and services at Maxwell Chambers for arbitration hearings
• SIAC: developed institutional rules and experienced Court and Secretariat
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6 MAXWELL CHAMBERS
7 MAXWELL CHAMBERS
8 MAXWELL CHAMBERS
9 MAXWELL CHAMBERS
SIAC – An Overview
• Commenced operations in July 1991
• Independent and not-for-profit
• 222 new cases filed in 2014 and an active caseload of over 600 cases
• Proven track record of enforcement:
• SIAC Awards have been enforced, among others, in China, Hong Kong, India,
Indonesia, Jordan, Thailand, Vietnam, Australia, UK and USA
• Rules ensure efficiency, cost effectiveness and flexibility
• Rules are easily acceptable to both Civil and Common Law practitioners/ arbitrators
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Agenda
I. Introduction to Singapore’s International Arbitration Framework and SIAC
II. Governance Structure at SIAC
III. SIAC Model Clause
IV. Institutional Measures for Controlling Costs and Timelines under SIAC Rules
V. Japan at SIAC
VI. Recent Trends at SIAC
11
Governance Structure at SIAC
Court of Arbitration
• 17 eminent arbitration practitioners from around the world to supervise case
administration
• President, SIAC Court of Arbitration to appoint arbitrators, determine Expedited
Procedure and Emergency Arbitrator applications
• Court of Arbitration to decide challenges to arbitrators and jurisdictional objections
• Assisted by Registrar, Deputy Registrar and Secretariat
Board of Directors
• Oversees corporate governance, business development and operations of SIAC
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Board of Directors
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Gautam Banerjee
Chelva R. Rajah, SC
Lucien Wong
Chairman
Nishith Desai
Cavinder Bull, SC
Deputy Chairman
Dr. Eun Young Park
Rajiv K. Luthra David Liu
John R. Savage Jeanette Wong Giles White
Michael J. Moser
Court of Arbitration
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Dr. Eun Young Park
Alvin Yeo, SC Ariel Ye Hiroyuki Tezuka Harish Salve, SC Prof. Jan Paulsson
Toby Landau QC Prof. Bernard Hanotiau Prof. Emmanuel Gaillard Paul Friedland
Gary Born
President
Claudia Annacker
Cavinder Bull, SC
Vice-President
Dr. Michael Pryles
Founder President
John R. Savage
Vice-President
Lijun Cao
Lucy Reed
Professional Case Management
• Team of international lawyers qualified in Belgium, Canada, China, India, Korea, the
Philippines, Singapore, England and USA.
• Functions include assisting in:
• Appointment of arbitrators where parties are unable to agree under SIAC Rules
and ad hoc arbitrations
• Financial management of the arbitral process
• Fixing the Tribunal’s fees and other terms of appointment
• Rendering accounts and collecting deposits towards the costs of the arbitration
• Processing the Tribunal’s fees and expenses
• Supervising and monitoring the progress of the case
• Scrutiny of draft awards
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Scrutiny of Draft Awards by Registrar
• Rule 28.2, SIAC Rules 2013:
“Before making any award, the Tribunal shall submit it in draft form to the Registrar…
The Registrar may, as soon as practicable, suggest modifications as to the form of
the award and, without affecting the Tribunal's liberty of decision, may also draw its
attention to points of substance. No award shall be made by the Tribunal until it has
been approved by the Registrar as to its form.”
• Para. 31, SIAC Practice Note for Administered Cases (PN-01/14, 2 Jan 2014):
“The Registrar may, where appropriate, consult the Court [of Arbitration] before
approving the draft award as to its form.”
• Enables avoidance of errors and improvements to be made to enhance the
enforceability of Awards
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Comparison of SIAC to ICC
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ICC SIAC
Both are supported by a Court and Secretariat comprising qualified experts and experienced
arbitration practitioners from both common law and civil law backgrounds
Both have procedures to review awards to ensure the quality and enforceability of the awards. (ICC
Rules, Art. 33, SIAC Rules, Rule 28.2)
No expedited or fast-track procedure Has an expedited procedure to enable fast rendering of
the award within a short timeframe – 6 months from
Tribunal constitution is default (SIAC Rules, Rule 5)
Mandatory Terms of Reference (ICC Rules,
Art. 33)
Tribunal may hold preliminary meeting to define and
focus issues in dispute (SIAC Rules, Rule 16.3, 16.4)
No duty of confidentiality specified in rules, but
Tribunal may make orders to preserve
confidentiality or protect secrets (ICC Rules,
Art. 22.3)
Express duty of confidentiality for both the proceedings
and award (SIAC Rules, Rule 35)
SIAC Panel of Arbitrators
• Parties may appoint arbitrators outside of SIAC Panel
• Experienced, international panel of legal and industry experts as arbitrators
• Over 400 expert arbitrators from 40 jurisdictions
• Strict standards of admission, e.g. 10 years PQE, fellowship accreditation, acted as
arbitrator in at least 5 cases, written at least 2 Awards
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SIAC Panel of Arbitrators
• SIAC Code of Ethics requires every arbitrator, before each appointment, to give a
continuing written undertaking that:
• he/she is able to discharge his/her duties as arbitrator without bias;
• he/she will disclose all facts or circumstances that may give rise to justifiable
doubts as to his/her impartiality or independence; and
• he/she will devote sufficient time to the case throughout the process
• Rigorous and efficient appointment process at SIAC (nationality, expertise &
seniority)
• Established first specialist IP Panel in February 2014
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New Cases Filed
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78 74
90 86 99
160
198 188
235
259
222
0
50
100
150
200
250
300
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of new cases handled by SIAC from 2004-2014
New Cases Filed
21
2
12
1 1 1
7
1 2 2 2 1
22
1 1 1 1 1 4
21
27
13
8
2 2 1 1 3
1 2 2
18
1 1 2 1 1 3
0 1 2 4
3
1
1
19
3
3
6
10
4 3
3
1
2
1 1
0
5
10
15
20
25
30
35
40
45
Number of new cases by nationality of parties excluding Singapore (2014)
New Cases Filed
22
41
38 37
27
21 21
17
15
13
10
0
5
10
15
20
25
30
35
40
45
China USA India Hong Kong UK Malaysia South Korea Australia Indonesia Thailand
Number of new cases by top 10 nationalities excluding Singapore (2014)
International Arbitration by Sectors (2014)
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Total aggregate sum in dispute for 2014: SGD5.04 billion
A Truly Global Provider
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81% of SIAC’s cases are international
Agenda
I. Introduction to Singapore’s International Arbitration Framework and SIAC
II. Recent Changes at SIAC
III. SIAC Model Clause
IV. Institutional Measures for Controlling Costs and Timelines under SIAC Rules
V. Japan at SIAC
VI. Recent Trends at SIAC
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SIAC Model Clause
SIAC Model Clause
Any dispute arising out of or in connection with this contract, including any question
regarding its existence, validity or termination, shall be referred to and finally resolved by
arbitration in Singapore in accordance with the Arbitration Rules of the Singapore
International Arbitration Centre ("SIAC Rules") for the time being in force, which rules are
deemed to be incorporated by reference in this clause.
The Tribunal shall consist of _________________(1 or 3) arbitrator(s).
The language of the arbitration shall be ________________.
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SIAC Model Clause
SIAC Model Clause for Contracts with PRC parties
Any dispute arising out of or in connection with this contract, including any question
regarding its existence, validity or termination, shall be referred to and finally resolved by
arbitration in Singapore administered by the Singapore International Arbitration Centre
(SIAC) in accordance with the Arbitration Rules of the Singapore International Arbitration
Centre ("SIAC Rules") for the time being in force, which rules are deemed to be
incorporated by reference in this clause.
The seat of the arbitration shall be Singapore.
The Tribunal shall consist of _________________(1 or 3) arbitrator(s).
The language of the arbitration shall be ________________.
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SIAC Model Clause
SIAC Expedited Procedure Model Clause
Any dispute arising out of or in connection with this contract, including any question
regarding its existence, validity or termination, shall be referred to and finally resolved by
arbitration in Singapore in accordance with the Arbitration Rules of the Singapore
International Arbitration Centre ("SIAC Rules") for the time being in force, which rules are
deemed to be incorporated by reference in this clause.
The parties agree that any arbitration commenced pursuant to this clause shall be
conducted in accordance with the Expedited Procedure set out in Rule 5.2 of the
SIAC Rules.
The Tribunal shall consist of one arbitrator.
The language of the arbitration shall be ________________.
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Agenda
I. Introduction to Singapore’s International Arbitration Framework and SIAC
II. Recent Changes at SIAC
III. SIAC Model Clause
IV. Institutional Measures for Controlling Costs and Timelines under SIAC Rules
V. Japan at SIAC
VI. Recent Trends at SIAC
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Calculation of Costs at SIAC
Ad valorem Schedule of Fees
• Fee caps
• Certainty
• Transparency
Flexibility
• Parties may elect for alternative methods of determining tribunal’s fees e.g. hourly
rates
Deposits calculated on estimated costs of arbitration
Cost Determination Process – Objective Assessment of Arbitrator Fees
• Relevant factors include time spent by Tribunal, complexity, hearings, questions of
law and efficiency
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Costs Comparison between SIAC and ICC
ADMINISTRATION FEES (All amounts in SGD)
Sum in Dispute SIAC Admin Fees (Max) ICC Admin Fees
100,000 4,900.00 5,597.96
1,000,000 14,700.00 24,141.48
5,000,000 30,800.00 53,090.20
10,000,000 38,800.00 69,443.34
25,000,000 53,050.00 89,946.20
50,000,000 76,800.00 114,046.70
100,000,000 95,000.00 133,721.20
1,000,000,000 95,000.00 154,749.00
ARBITRATORS' FEES (All amounts in SGD)
Sum in Dispute SIAC Arbitrator's Fees (Max) ICC Arbitrator's Fees (Max)
100,000 13,150.00 16,610.08
1,000,000 63,400.00 72,879.59
5,000,000 126,900.00 168,442.20
10,000,000 161,900.00 222,765.30
25,000,000 206,900.00 283,458.00
50,000,000 281,900.00 342,539.10
100,000,000 344,900.00 434,062.70
1,000,000,000 805,000.00 923,917.90
** 1 SGD = 0.731604 USD 31
Special Procedures
SIAC Expedited Procedure (under the SIAC Rules 2010 and 2013)
• May be applied for where:
• When the sum in dispute does not exceed SGD 5,000,000; or
• When parties agree; or
• In cases of exceptional urgency
• Useful for lower value, less complex disputes
• If application is allowed by President, SIAC Court of Arbitration:
• To be referred to sole arbitrator
• Award to be made within 6 months
• As at 25 March 2015, a total of 174 applications for Expedited Procedure received, with 120
applications granted
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Special Procedures
SIAC Emergency Arbitrator Provisions – Why the Need?
• Challenges with seeking interim relief from courts
• Desire for confidentiality
• Lack of confidence in national courts (delays, complex/unfamiliar judicial
process, unfavourable decisions)
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Special Procedures – Emergency Arbitrator
• First Asian arbitral institution to introduce these provisions - July 2010
• Provisions for appointment of an Emergency Arbitrator under the SIAC Rules 2013, Rule 26 -
procedure set out in Schedule 1:
• Application in writing to the Registrar
• Concurrent with or following the filing of a Notice of Arbitration
• Prior to constitution of the Tribunal
• Emergency Arbitrator has:
• Same powers as Tribunal
• Power to order any interim relief
• To give reasons in writing for his decision
• No power to act after Tribunal constituted
• Tribunal may reconsider, modify or vacate interim award by Emergency Arbitrator
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35
Action Time
Appointment of Emergency Arbitrator Within 1 business day of receipt by
Registrar of application and payment of fee
Challenge to appointment of Emergency
Arbitrator
Within 1 business day of communication by
the Registrar of the appointment and the
circumstances disclosed
Schedule for consideration of application by
Emergency Arbitrator
Within 2 business days of appointment
The order or award of an Emergency
Arbitrator ceases to have effect
If within 90 days a Tribunal is not
constituted
Emergency Arbitrator Procedural Timeline
Emergency Arbitrator – Examples of Relief Sought
• To restrain a BVI company from breaching a confidentiality agreement by filing
litigation in multiple jurisdictions;
• To permit an Indonesian claimant to sell a shipment of coal that had not been accepted
by a Chinese respondent buyer and was deteriorating at a Chinese port over the
Chinese new year;
• To preserve the status quo of a Dutch claimant as exclusive distributor of a
respondent’s products;
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• To permit a BVI company unimpeded access to inspect a property development in
Vietnam where the respondent was effecting alterations to properties to remedy
defects;
• A Mareva injunction against a Bruneian national from disposing shares and dissipating
assets;
• A freezing order against Indian respondents from transferring assets and to disclose
financial records and statements to an international financial institution;
• Orders against a shipyard which had been contracted for steelworks and maintenance
works, from interfering with the safe departure of a vessel.
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Emergency Arbitrator – Examples of Relief Sought
Emergency Arbitrator – Timing of Awards and
Enforceability
• Average time for an interim order from the receipt of an application is a mere
2.5 days
• Average time for an award after having heard parties on the request has
been 8.5 days and has been as short as 1 day
• Emergency Arbitrator orders and awards enforceable in Singapore-seated
arbitrations under International Arbitration Act
• In practice, high rate of voluntary compliance
• In majority of cases subsequently constituted Tribunals affirmed orders and
awards issued by Emergency Arbitrator
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Emergency Arbitrator Outcomes
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Outcomes of applications for emergency relief
Granted 16
Granted (by consent) 4
Granted (in part) 4
No orders made (application withdrawn) 4
Rejected 14
Pending 0
TOTAL 42 (as at 25 March 2015)
SIAC EMERGENCY ARBITRATOR FEES
SIAC Administration Fees: SGD5,000
Emergency Arbitrator’s Fees: Capped at 20% of sole arbitrator max., with min. of SGD20,000
(subject to Registrar’s discretion)
Agenda
I. Introduction to Singapore’s International Arbitration Framework and SIAC
II. Recent Changes at SIAC
III. SIAC Model Clause
IV. Institutional Measures for Controlling Costs and Timelines under SIAC Rules
V. Recent Trends at SIAC
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Recent Trends at SIAC
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Nationalities of Arbitrators Appointed by SIAC
Australia 13%
[범주 이름] [백분율]
[범주 이름] [백분율]
[범주 이름] [백분율]
[범주 이름] [백분율]
[범주 이름] [백분율]
[범주 이름] [백분율]
[범주 이름] [백분율]
Malaysia 8%
Netherlands 2%
New Zealand 5%
[범주 이름] [백분율]
Singapore 32%
South Africa 1%
South Korea 2%
UK 22%
USA 2%
Recent Trends at SIAC
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Nationalities of Arbitrators Nominated by Parties
[범주 이름] [백분율]
Austria 6%
[범주 이름]
[백분율] [범주 이름] [백분율]
[범주 이름] [백분율]
[범주 이름] [백분율]
Singapore 62%
Sri Lanka 1%
Switzerland 3%
UK 11%
[범주 이름]
[백분율] [범주 이름] [백분율]
Recent Trends at SIAC
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Governing Law of Contract
In 90% of new cases filed in 2014, parties included a choice of law clause in their contract
Others
12% Indian Law
4%
Not Specified
10%
English Law
25%
Singapore Law
49%
Practice Note for Administered Cases
on the Appointment of Administrative Secretaries
• From 2 February 2015
• To assist the arbitral tribunal in administrative matters
• With the consent of all parties to the arbitration
• The administrative secretary shall declare independence, impartiality and
confidentiality
• No fees for the use of an administrative secretary where the amount in dispute is
under SGD 15,000,000.00
• The fees of the administrative secretary shall not exceed SGD 250.00 per hour
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Singapore International
Mediation Centre (“SIMC”)
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Why mediate?
• Unlike litigation and arbitration, mediation is a non-adversarial process that in
appropriate cases can result in better outcomes for parties
• Win-win situations can be achieved through flexible mix of legal and non-legal
solutions
• Can be more efficient and cost-effective (cf: arbitration and litigation).
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Main Features of Mediation at SIMC
• Panel of high quality international mediators
• Professional case management under SIMC Rules
• Competitive and transparent fee structure
• SIMC is appointing authority and will designate a
suitable mediator from SIMC’s Panel of Mediators if
parties fail to jointly nominate a mediator
• Unique options for enforcement of settlement
agreements:
• Consent award pursuant to SIAC-SIMC Arb-Med-
Arb Protocol 47
Singapore - 15
India – 4
Australia - 6
Brazil - 3
Canada - 1 France - 1
New Zealand – 5
Hong Kong - 5
Netherlands - 1
UK - 12
South Africa - 2
Nigeria - 1
Switzerland - 1
USA - 10
SIMC’s Panel of Mediators are from …
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SIAC-SIMC Arb-Med-Arb Service
• Arb-med-arb is a process where parties attempt mediation in the course of
arbitration proceedings
• If mediation is successful, parties may request their mediated settlement be
made a consent arbitral award
• If mediation is unsuccessful, parties may proceed with arbitration
Arbitration Mediation Arbitration
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Thank You
Contact us
t: +65 6221 8833
f: +65 6224 1882
e: corpcomms@siac.org.sg
w: www.siac.org.sg
a: 32 Maxwell Road #02-01
Maxwell Chambers
Singapore 069115
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