Ministry of Law seeks public feedback on IAA; SBF establishes new arbitration group

Singapore

THE Ministry of Law (MinLaw) started a public consultation on Wednesday to seek views on proposals to amend the International Arbitration Act (IAA).

The proposed changes would provide for the default appointment of arbitrators in multi-party situations; allow parties under mutual agreement to request arbitrators to decide on jurisdiction at the preliminary stage; and recognise that an arbitral tribunal and the High Court can enforce obligations of confidentiality in arbitration.

The changes would also allow parties to appeal to the High Court on a question of law arising from an arbitration award, provided that parties have agreed to opt in to the mechanism. Considerations for this change were reported in April, in a written reply from Law and Home Affairs Minister K Shanmugam to a question from Murali Pillai, MP for Bukit Batok SMC.

Mr Pillai had asked the minister whether he would consider reviewing the IAA to provide for an avenue of appeal to Singapore courts, where it is alleged that there are errors of law in the award issued by an arbitral tribunal.

Kelvin Koh, dispute resolution partner at TSMP Law Corporation, said that the changes rationalise the current process in arbitration and addresses gaps in existing rules. They are also in line with developing Singapore as a dispute resolution hub.

While the rules provide more scope for judicial oversight due to the need to have a point of law decided by the courts - rather than an arbitrator who may be an expert in his commercial or professional field, but may not be a legal expert - it also gives the parties more control on whether they want the courts to have a say over the issues of law, Mr Koh added.

MinLaw is also seeking views on two other proposals - one which allows parties to waive or limit the annulment grounds under the Model Law and IAA; and another which gives the court power to order costs in certain arbitral proceedings. The public consultation will run from June 26 to Aug 21.

Separately, the Singapore Business Federation (SBF), otherwise known as ICC (International Chamber of Commerce) Singapore, said on Wednesday that it has established a new arbitration group. This is part of its broader aim to promote the interests of the Singapore business community, and to raise Singapore's profile as a hub for international arbitration and dispute resolution.

Among other things, the ICC Singapore Arbitration Group will promote ICC arbitration and other dispute resolution services within the region, and further develop the expertise of the regional dispute resolution community, SBF said.

Smitha Rajan Menon, partner at WongPartnership LLP Singapore, and Singapore representative to the ICC International Court of Arbitration will chair the group; while Andrew Yeo, partner at Allen & Gledhill LLP, will serve as vice-chair.