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[From Singapore Office] NEW SIAC ARBITRATION RULES TO COME INTO EFFECT IN 2025 – Part 1 Automatic application of the Streamlined Procedures and the introduction of Protective Preliminary Orders

NO&T Dispute Resolution Update

NO&T Asia Legal Review

Author
Annia Hsu, Kennosuke Muro (Co-author)
Publisher
Nagashima Ohno & Tsunematsu
Journal /
Book
NO&T Dispute Resolution Update No.16/NO&T Asia Legal Review No.93 (January, 2025)
Notes
Reference
Practice Areas
*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Introduction

On 9 December 2024, the Singapore International Arbitration Centre (“SIAC”) announced that the new SIAC Arbitration Rules (7th edition) will come into force on 1 January 2025 (“New Rules”). This will replace the 6th edition of the SIAC Arbitration Rules, which came into effect on 1 August 2016 (“2016 Rules”). The New Rules have many notable new procedures and enhancements to the existing processes, which were adopted after extensive public consultation with SIAC’s users and stakeholders. We previously reported here on the draft 7th edition that was circulated for public consultation in December 2023. This article examines two key changes: (i) the new Streamlined Procedure that automatically applies to claims equal to or under SGD 1 million and the expanded application of Expedited Procedure, and (ii) the enhancements to the Emergency Arbitrator procedure. Capitalised terms bear the same meaning defined in the New Rules.

Three Options for Users

Under the 2016 Rules, the parties had the option of either applying the standard arbitration procedure, or the Expedited Procedure. With the New Rules, users are now availed of three types of procedures to suit the needs of their particular case: (1) (new) Streamlined Procedure, (2) (revised) Expedited Procedure, or (3) standard procedure. The key features of each set of rules is summarised in the table below.

Feature (New) Streamlined Procedure (Revised) Expedited Procedure Standard Procedure
Eligibility Applies if parties agree
OR
Automatically applies if the amount in dispute < SGD 1 million, unless otherwise determined
Applies if parties agree
OR
A party can apply to SIAC to apply the Expedited Procedure if:

  • (a)   SGD 1 million < Amount in dispute < SGD 10 million
  • OR
  • (b)  Amount in dispute < SGD 1 million and it was determined that Streamlined Procedure shall not apply
  • OR
  • (c)  Circumstances warrant it
Automatically applies, unless Streamlined Procedure or Expedited Procedure is applicable
Number of arbitrators 1 1 unless otherwise determined 1 by default, unless otherwise determined to be 3 or agreed
Evidentiary process No document production and no witness evidence unless otherwise determined Tribunals are expressly empowered to refuse document production and limit scope of submissions and witness evidence Typical arbitration proceedings will have document production and witness evidence
Hearing No hearing unless otherwise determined or a party requests and the tribunal accepts No hearing unless a party requests and the tribunal accepts

Online hearing unless otherwise agreed or determined
Hearing as long as a party requests it, unless otherwise agreed to have no hearing
Timeline for Award Final award within 3 months from date of tribunal constitution, unless extended Final award within 6 months from date of tribunal constitution, unless extended No specific deadline
Fees ≤ 50% of maximum fees in SIAC’s Schedule of Fees SIAC’s Schedule of Fees SIAC’s Schedule of Fees

It is crucial to note that, by default, the Streamlined Procedure will automatically apply to claims equal to or under SGD 1 million unless expressly excluded by agreement in writing. This is different from the draft 7th edition that we had reported on in 2023, where a party had to make an application for the Streamlined Procedure to apply and the SIAC President had to decide so before it would apply. The Streamlined Procedure is essentially a documents-only arbitration, with no document production, witness evidence or hearings save in exceptional circumstances. This may come as a surprise to users as previously, anything other than the standard procedure were typically applicable only if agreed between parties or decided by SIAC. That said, the Streamlined Procedure allows simple, low value cases to be resolved relatively quickly at low cost, which businesses will likely find attractive.

Protective Preliminary Orders

The New Rules, unlike the 2016 Rules, allow for a party to apply for an Emergency Arbitrator’s appointment to seek emergency interim relief (1) even before the filing of a Notice of Arbitration and (2) without notice to the counterparty. On top of that, the applicant may also concurrently make a “protective preliminary order application” for a preliminary order directing the counterparty not to frustrate the purpose of the requested emergency interim relief. This is a new process that had not been included in the draft 7th edition either. The Emergency Arbitrator must determine the protective preliminary order application within 24 hours of its appointment, and any such order will expire within 14 days of issuance. While this is a novel arbitral mechanism – essentially a “pre-emergency interim relief” without any notice to the counterparty – that is usually only available through the courts, the efficacy of such an order may be limited as a successful applicant will still have to convert such order (that only has a short validity of 14 days) to a court judgment before it can be enforced against a non-compliant counterparty.

Conclusion

The New Rules are a welcome refresh of the 2016 Rules with innovative and well-considered mechanisms that we believe will continue to meet the demands and expectations of both sophisticated and first-time users. In view of the numerous changes in the New Rules, we will continue addressing the notable ones in our next Dispute Resolution Update.

This newsletter is given as general information for reference purposes only and therefore does not constitute our firm’s legal advice. Any opinion stated in this newsletter is a personal view of the author(s) and not our firm’s official view. For any specific matter or legal issue, please do not rely on this newsletter but make sure to consult a legal adviser. We would be delighted to answer your questions, if any.

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