Biannual Meeting of the ICC Commission on Arbitration

08 JAN 2008

8 Jan 2008 Posted in Speeches

biannual-meeting-of-the-icc

Deputy Prime Minister and Minister for Law Prof S Jayakumar delivering his introductory remarks at the biannual meeting of the ICC Commission on Arbitration. Joining him on stage are Chair of ICC Commission on Arbitration Mr Peter Wolrich, Chairman of UNCITRAL Working Group on Arbitration Mr Michael Schneider and Chairman of ICC International Court of Arbitration Prof Pierre Tercier.

Chair of the ICC Commission on Arbitration Mr Peter Wolrich

Commission Members

Distinguished Guests

Ladies and Gentlemen

Good morning

  1. I understand that in the long history of the International Court of Arbitration of the International Chamber of Commerce, this is the first time that the Meeting of the Commission on Arbitration is being held outside Paris. It is an honour for Singapore that we have been chosen as the venue.

  2. The ICA Commission’s decision to have this meeting in Asia is timely. These are exciting times for international arbitration, particularly for Asia. Asia’s economy is growing at a tremendous pace, spearheaded by China and India, which registered GDP growths of 10.7% and 9.4% respectively in 2006. China, in particular, has seen growth sustained at 8-9% a year for the past 25 years and shows little sign of slowing down. Other parts of Asia are also enjoying steady growth. Last year, inflow of foreign direct investments to South Asia, East Asia and Southeast Asia topped 187 billion US dollars. With Asian economies booming and increasing in sophistication, there is an expected rise in international commercial disputes and a concomitant growing acceptance of arbitration as a form of dispute resolution.

  3. In Asia, with more parties entering into cross-border agreements, international arbitration cases have increased not only in numbers in recent years, but also in complexity and in the quantum of dispute settlements. International commercial arbitration has become a big industry in Asia. In China itself, the number of arbitration commissions has swelled to 180, from just one institution before 1995. Many Asian arbitral institutions have also seen a surge in the cases that they administer.

  4. I believe that international arbitration in Asia is set to grow even faster in the years to come, and that Asia will be the new focal point for international arbitration work. The time is therefore ripe to place Asia on the world map of international arbitration.

  5. We in Singapore are very bullish about the prospects of international arbitration in Asia. There are several reasons why we are confident we can play a role and leverage on its growth, as we have done in recent years.

  6. First, the fact of geography. Singapore is blessed with an advantageous locality in that it sits at the crossroad of the major economies in the region. Key cities like Shanghai, Tokyo, Seoul, Jakarta, New Delhi and Sydney are all within a seven-hour flight from Singapore.

  7. Second, familiarity. Ethnically, we share common bonds with the people of China, India, and Southeast Asia, while language-wise, English gives us that vital link with the rest of the world. We are an amalgamation of many cultures and yet biased to none. To the largely conservative peoples of Asia, we therefore offer a welcome blend of familiarity and neutrality, all at the same time.

  8. Third, we have in place a legal infrastructure that is conducive for international arbitration. Our laws are arbitration-friendly and in line with developments in the international arbitration scene. For example, we base our arbitration regime on the United Nations Commission on International Trade Law. We are also a signatory to the New York Convention. Our judiciary, which has a high international standing and a strong tradition in observing the rule of law, sees arbitration in its rightful place alongside the entire suite of dispute resolution mechanisms, and therefore provides maximum judicial support for arbitration while imposing minimum intervention. Furthermore, our Commonwealth heritage and cosmopolitan legal fraternity give us an abundance of quality counsel for arbitration using both New York law and English law. Meanwhile, Singapore law is also gradually becoming the preferred regional choice of law particularly for parties familiar with the common law tradition.

  9. Fourth, Singapore already has a good reputation as a venue of choice for international meetings. According to annual rankings by the International Congress and Convention Association, Singapore was rated the third best convention city in 2007 after Vienna and Paris, and has also topped the Asian countries eight times since 1995. The facilities and amenities available here can compare with the best in the world.

  10. Fifth, Singapore has in recent years built up a momentum in developing the international arbitration scene in Singapore. Based on figures released by the ICC, Singapore ranks as Asia’s most popular venue for international arbitration; and sixth in the world, after Paris, Geneva, London, Zurich, and New York. Law firms in Singapore have reported a steady growth in international arbitration caseload over the past few years, and have also been increasing their number of lawyers handling arbitration work. Many law firms have also reported that their arbitration departments are growing at a much faster rate than other departments.

  11. We have not been content to rest on these advantages. We have recently launched a tax incentive scheme to encourage law firms to handle more international arbitration cases with hearings in Singapore. Foreign arbitrators already enjoy tax exemption for their income earned from arbitration work in Singapore. We had earlier given foreign lawyers complete freedom to practise arbitration work in Singapore, regardless of the governing law of the contract in dispute.

  12. To provide for the needs of high-end arbitration work, we have started to develop a purpose-built arbitration complex by the middle of 2009 that will house a full suite of facilities like a state-of-the-art hearing room as well as renowned international arbitration institutions. Thus far, the American Arbitration Association and the Permanent Court of Arbitration have committed to set up regional offices in Singapore, and we hope to see yet more international arbitration institutions setting up offices here in the near future.

  13. However, the Singapore Government’s role can only be to create an environment for the industry players to flourish. Success of the industry ultimately depends on the quality of the industry players themselves, which in turn depends on the quality of the legal talent. We have, over the years, set high standards for legal education and admission to the Singapore Bar. Many of our lawyers are well-regarded. Earlier this year, we opened a second law school to add diversity and competition to the local legal education sector. Yet more initiatives will be introduced in the coming years with a view to further enhance the quality of our legal talent pool.

  14. Many foreign law firms and foreign lawyers are already operating in Singapore, adding to the depth of the legal talent available here in providing services in the various governing laws. In the area of international arbitration, as I had mentioned earlier, foreign lawyers have complete freedom to practise regardless of the governing law of the contract in dispute. We have recently allowed a foreign lawyer to own up to 25% of the equity shares or share of profits in a Singapore law firm. We have also introduced a special scheme which allows local law firms to hire outstanding foreign lawyers to practise Singapore law in areas such as finance and corporate law. In the coming years, with businesses and industries growing in Singapore and the region, we can expect more foreign lawyers and foreign law firms to operate here. This will not only further enhance our legal talent pool, it will also add to the vibrancy of the legal services industry including international arbitration here.

  15. We hope to see eminent international bodies like the ICC expanding into Singapore to capitalise on the renewed vibrancy of our legal sector.

  16. On this count, it is heartening to see the ICA Commission’s interest in Singapore and Asia. It is my hope that Singapore and the ICC can continue to work together to further develop the arbitration industry in this part of the world.

  17. On this note, I wish you a fruitful meeting ahead.

  18. Thank You.

Last updated on 26 Nov 2012