Study by Singapore Academy of Law suggests strong preference for arbitration over mediation

The Singapore Academy of Law (SAL) has published the results of its study on preferences for the choice of governing law and jurisdiction by those involved in cross-border transactions in Singapore and the region (the Study). 

The Study reflects the views of around 500 commercial law practitioners and in-house counsel who have involvement in cross-border transactions. In terms of dispute resolution processes, the key outputs are:

• 71% of respondents indicated that arbitration was the favoured method of dispute resolution, compared to 24% for litigation and 5% for mediation. Mediation's low score is perhaps surprising and the outcome may reflect the way the Study question was framed, given that mediation is often attempted within the framework of litigation or arbitration and should not be selected as a sole method of dispute resolution,given that it may not reach a determinative outcome.
• Enforceability of decisions was cited as a key priority by respondents. Given the importance of enforceability in choosing litigation or arbitration, the introduction of the hybrid Arb-Med-Arb protocol by the Singapore International Mediation Centre in partnership with the SIAC may encourage the use of mediation in Singapore in the future. As described in our previous blog post, the combined process can result in a consent award enforceable under the New York Convention 1958.
• All industry sectors represented by the Study showed a strong preference for arbitration.  Consistent with our own experience, the highest scores were shown in the Construction and Oil & Gas sectors, at 84% and 82% respectively. The highest score for litigation was the Banking and Finance sector at 30%. 

Click here to read more on our Arbitration Notes blog.