7th Edition of the SIAC Rules published and to take effect in 2025

The Singapore International Arbitration Centre ("SIAC") has unveiled the 7^th edition of its Arbitration Rules, set to take effect on 1 January 2025 (the "2025 SIAC Rules"). The SIAC 2025 Rules introduce significant updates aimed at enhancing the efficiency and integrity of arbitration proceedings. Developed through extensive consultation with stakeholders, these rules reflect SIAC's commitment to maintaining its position as a leading global arbitration institution.

Streamlined Procedure (Rule 13, Schedule 2) and Expedited Procedure (Rule 14, Schedule 3)

Streamlined Procedure

Parties can now opt for the streamlined procedure for disputes involving amounts up to SGD 1 million (approx. USD 740,000). The primary advantages of this option are a shorter time frame and reduced costs: an arbitral award will be issued within three months of the tribunal's constitution and the tribunal and SIAC's fees will be capped at 50% of the maximum limits specified in the Schedule of Fees.

The streamlined procedure is best suited for less complex matters, because the default is that there will be no document production, fact or expert witness evidence tendered or an oral hearing. For instance, a streamlined procedure may be suited to a dispute which centres around the interpretation of a contract, where factual evidence and expert testimony are unnecessary. However, the tribunal may depart from this default position where appropriate (such as in circumstances where the parties require an opportunity to make oral submissions in a virtual hearing).  

Expedited Procedure

The expedited procedure was the precursor to the streamlined procedure. Under the 6^th edition of the Arbitration Rules of the SIAC (the "2016 SIAC Rules"), parties can apply for the expedited procedure where the dispute amount is no more than SGD 6 million (approx. USD 4.5 million). The cap has now been increased to SGD 10 million (approx. USD 7.4 million). A minimum threshold of SGD 1 million (approx. USD 740,000) has also been introduced, ensuring that there is no overlap between the streamlined and expedited procedures. Whereas the timeframe for the streamlined procedure is three months from the constitution of the tribunal, it is six months for the expedited procedure.

Preliminary Determination (Rule 46)

The 2025 SIAC Rules provide that parties may apply for the preliminary determination of an issue in an arbitration. An application may be made where the parties agree, the applicant demonstrated that it is likely to lead to time and costs savings and a more efficient and expeditious resolution of the dispute, or the circumstances warrant the preliminary determination of an issue. The tribunal will decide on the issue for preliminary determination within 90 days of the application for the same.

Although the 2016 SIAC Rules did not explicitly provide for preliminary determination, this has not precluded preliminary determinations in SIAC arbitrations in the past. Preliminary determinations streamline the arbitration by resolving key issues early on and narrowing the scope of the dispute. For instance, deciding early on that a claim is time-barred would mean that parties can avoid costs in litigating that particular claim. Such a determination may also make parties seriously consider settlement.

Coordinated Proceedings (Rule 17)

The 2025 SIAC Rules have introduced an option for coordinating proceedings. Where the same tribunal is constituted in multiple arbitrations in which the same question of law or fact arises, parties may apply for:

• the arbitrations to be conducted concurrently;

• the arbitrations to be conducted sequentially;

• the arbitrations to be heard together; or

• any of the arbitrations to be suspended pending the conclusion of any of the other arbitrations.

Although the arbitrations may be coordinated, they will remain separate proceedings and the tribunal will issue separate decisions for each arbitration. Coordinated proceedings are intended to promote consistency in decisions in related arbitrations. Coordination can also lower the costs for all parties involved by minimising the need for duplicative hearings and submissions.

Third Party Funding (Rule 38)

Prior to 2017, third parties were not allowed to finance a Singapore-seated arbitration in return for a fee payable from the damages or settlement sum recovered by the funded party if successful. However, in 2017 third-party funding was allowed for international arbitrations and related court or mediation proceedings. The 2025 SIAC Rules incorporate and expand on previous guidance issued by the SIAC (PN – 01/17) in two ways:

• First, to prevent arbitrator conflicts of interest, the 2025 SIAC Rules mandate disclosure of third-party funding as soon as possible. A failure to do so may lead to sanctions and adverse orders. Further, after the tribunal has been constituted, parties cannot enter into a third-party funding agreement which may lead to a conflict of interest with an arbitrator.
• Second, the 2025 SIAC Rules provide that the tribunal may take into account third-party funding in apportioning costs. This may be intended to ensure the recoverability of the costs of third-party funding in light of Essar Oilfield Services Ltd v Norscot Rig Management Pvt Ltd [2016] EWHC 2361 (Comm). See our blogpost on that case here.

Witness Preparation (Rule 40.5)

The 2025 SIAC Rules incorporate a fundamental principle of witness preparation: "A party and its representatives should seek to ensure that the evidence of fact witnesses reflects their own account of the relevant facts, and the evidence of experts reflects their genuinely held opinions." This reflects the position under Singapore law (see Ernest Ferdinand Perez De La Sala v Compañia De Navegación Palomar, SA (2018) 1 SLR 894), and will serve as a reminder to lawyers (even foreign lawyers) that witness coaching is prohibited.  

Deadline for Issuing the Arbitral Award (Rule 53.2) and Publishing Arbitral Awards (Rule 60)

Under the 2016 SIAC Rules the tribunal's deadline to submit its draft award to the SIAC for scrutiny is 45 days from the close of proceedings. Given that the tribunal decides when to declare proceedings closed, the deadline was rather malleable. The 2025 SIAC Rules set a concrete deadline for the tribunal to submit its draft award for scrutiny: 90 days from the last oral or written submission by a party. It is worth noting that there is, however, no timeline for the scrutiny and finalisation process.

SIAC may, with the agreement of all the parties, publish arbitral awards, redacting party names and other identifying information. Publishing awards is intended to further the development of jurisprudence and enhance transparency of arbitral proceedings.

Other Changes, In Brief

Additional changes of note include:

• Parties may apply for an emergency arbitrator prior to submitting a notice of arbitration, provided the notice of arbitration is filed seven days thereafter. This application may be made without giving notice to the counterparties. In making this application, parties may also apply for protective preliminary orders to ensure the counterparties do not frustrate the purpose of the emergency measure requested. This aligns the emergency arbitration procedure with equivalent procedures in the Singapore courts (Rule 12, Schedule 1).
• The tribunal may proceed with the arbitration even if there are non-participating parties and may impose sanctions for non-compliance with tribunal directions, if deemed appropriate (Rule 44).
• The tribunal will discuss with parties adopting environmentally sustainable procedures in the conduct of proceedings (Rule 32.4(b)).
• Parties may propose or the tribunal may direct information security measures. Parties may face sanctions or adverse orders for failing to comply with measures ordered by the tribunal (Rule 61).
• The introduction of SIAC's case management system, SIAC Gateway, on which parties will upload filings, documents, and communications (Rule 4).

Comment

These updates are designed to enhance efficiency, flexibility, and user-friendliness and underscore SIAC's commitment to maintaining its position as a market leader. The statistics on the uptake of the new procedures will provide valuable insight into their effectiveness and the evolving preferences of arbitration users.