Singapore’s alternative dispute resolution ecosystem must evolve to stay relevant: Murali

Hubs for alternative dispute resolution (ADR) must evolve to deliver certainty and the rule of law for businesses amid the volatile global landscape.

In a speech on May 22 to about 200 delegates at the Alternative Dispute Resolution Conference, Minister of State for Law and Transport Murali Pillai said Singapore aims to navigate the complex and dynamic global environment in three ways – upholding the rule of law, innovation and creating partnerships.

On the rule of law, Mr Murali said Singapore is a strong proponent of multilateralism, noting that the Republic had signed and ratified a number of key international conventions, including the New York Convention, the Hague Choice of Court Convention and the Singapore Convention on Mediation.

He said these instruments enhance the enforceability of arbitral awards, court judgments and mediated settlement agreements across borders.

Mr Murali highlighted the most recent addition – the Singapore Convention on Mediation, which currently has 18 parties and 57 signatories, including many countries from Asean and Asia.

“We hope that more countries will sign and ratify the convention, allowing mediation to become a truly effective and trusted means for resolving cross-border disputes – complementing arbitration as a key pillar of international dispute resolution,” he said.

Speaking at the conference, held at the Pan Pacific Singapore and jointly organised by the Law Society of Singapore and LawAsia (The Law Association for Asia and the Pacific), Mr Murali said that Singapore must consistently innovate, improve and create better ways to meet global needs.

He said changes were made to introduce a framework for fee agreements to align the ADR landscape in Singapore with practices and developments on the international front. Singapore has also embraced technology, with the Singapore International Mediation Centre offering the use of the Mediation Artificial Intelligence Assistant.

The tool allows users to quickly make sense of large volumes of information, including generating a chronology of events, outlining the roles of individuals, providing a table of common positions and differences between parties, and summarising the documents and data provided by parties.

Mr Murali said Singapore recognises that it cannot operate in isolation because of the international nature of the disputes.

At the government-to-government level, he noted that the Ministry of Law has signed memorandums of understanding with counterparts around the world.

ADR institutions here have also collaborated with foreign ADR institutions, trade bodies, bar associations, hearing centres and law schools to exchange knowledge and best practices.

Mr Murali said ADR institutions in Singapore have an international board, court and panel from both common law and civil law jurisdictions.

“Just as Singapore is integrated into the global trading system, our ADR ecosystem must also be globally connected.

“To this end, we have liberalised our dispute resolution regime,” he added, noting that parties can appoint counsel, arbitrators and mediators of any nationality.

In his speech, Mr Murali said he is optimistic that globalisation is here to stay, though in a different form, with new ties forged between like-minded jurisdictions.

He said he was especially confident about the future of Asia, noting that three of the top five largest economies in the world are in Asia – China, Japan and India.

“Asean, as a collective bloc, is around the same size as India. This region is dynamic and full of promise. The Asia-Pacific is home to over 60 per cent of the world’s youth aged 15 to 24, representing not only a significant source of talent but also a growing base of consumers.

“With an expanding middle class and increasing urbanisation, we are witnessing a surge in infrastructure development and economic activity. And where business thrives, so too does demand for legal and dispute resolution services. There is room for all of us to benefit from this growth,” he added.

Legal experts speaking to The Straits Times on the sidelines of the event said new trends are emerging in the ADR environment.

One of the delegates at the conference, Mr See Chern Yang, director of dispute resolution at Drew & Napier, told ST: “We are starting to see more commercial disputes, especially now... cross-border, commercial disputes between two parties of different countries getting through the mediation system.

“We are also starting to see a trend of what we call pre-commencement mediation, which means even before the case is found in the court, before litigation commences, parties with their lawyers collectively decide, ‘let’s mediate’.”

Parties from around the world have chosen Singapore as the dispute resolution forum, even when the dispute has no direct connection with Singapore.

In the latest Queen Mary University of London and White & Case’s International Arbitration Survey, Singapore continues to rank among the top four most preferred seats of arbitration across all regions, including Africa and Latin America.

The Singapore International Arbitration Centre has received cases from parties in 110 jurisdictions.

Mr Shyam Divan, president of LawAsia, said ADR can bring cost savings and more efficiency to feuding parties.

In international trade disruptions, such as during the Covid-19 pandemic, parties may find themselves having a problem that needs to be solved quickly.

Mr Divan told ST: “So in situations like that, I think ADR, without having to go through the court system, is much more efficient – either through the arbitration or the mediation route – in trying to have a solution that is acceptable to two sides.”

He added that he sees mediated settlements gaining popularity.

Mr Murali, who will be appointed Senior Minister of State for Law and Transport on May 23, told ST about his new role of “being a team player in the team captained by Prime Minister Lawrence Wong”.

“The goal is simple but difficult – to win the match to secure our country’s future at local, national and international levels,” he said.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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