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6 January, 2017
Recent Developments In mid-2016, the Singapore Ministry of Law conducted a public consultation on legislative amendments to introduce a legal framework for third party funding for international arbitration in Singapore.
These legislative amendments were introduced in a first reading in Parliament on 7 November 2016. They are expected to be passed by Parliament shortly after the next available sitting, which is currently scheduled to take place on 9 January 2017.
This update looks at the impact of the proposed legislation on the international arbitration landscape in Singapore.
Impact of Proposed Legislation
─ As the business operating environment becomes increasingly challenging, the proposed legislation will enable businesses to pursue their claims in arbitration that they may otherwise not be willing to pursue if they have limited operating funds.
─ Allowing third party funding for international arbitration in Singapore allows Singapore to stay competitive as a leading international arbitration hub, given that such funding is already available in other major arbitration centres around the world, including London, Paris and Geneva.
─ Some of these third party funders have already begun to set up bases in Singapore in anticipation of the new legislation. Conclusion
─ We anticipate that businesses would welcome the imminent introduction of third party funding in international arbitration in Singapore as it provides them with an external source of funding of legal costs.
─ We will provide further updates on the progress of the proposed legislation.
For the complete table of Summary of Proposed Amendments, please click here.
For further information, please contact:
Leng Sun Chan, Principal, Baker & McKenzie.Wong & Leow
LengSun.Chan@bakermckenzie.com
