On 9 December 2024, the Singapore International Arbitration Centre (SIAC) published the 7th edition of its rules on arbitration, which were last updated in 2016. The updated rules, which come into force on 1 January 2025, are of substantial importance to cross-border businesses active in Asia and globally given that SIAC has in recent years become one of the premiere global arbitration institutions, with Singapore now one of the two most preferred seats for international arbitration proceedings. The 2025 Rules will apply to any SIAC arbitration commenced from January onward, unless otherwise agreed by the parties.
SIAC’s 2025 Rules are based on a proposal circulated in August of last year and summarized in this prior Covington client alert. The 2025 Rules adopt many of the key innovations of the draft rules but include changes resulting from a year-long listening tour conducted by SIAC staff to hear feedback on the proposal.
Two notable changes from the draft rules include removing a presumption that parties agree to publication of decisions and awards absent objection, and removing a requirement that the SIAC President take into account “principles of diversity and inclusion” in the appointment of an arbitrator. Additionally, while the 2025 Rules introduced one new ground to challenge an arbitrator (see below), a second proposed ground—allowing challenges based on an arbitrator’s failure to perform their functions in accordance with the rules and within prescribed time limits—was not adopted.
The 2025 Rules also encourage the early settlement of disputes, including through mediation. For example, Rule 32.4 suggests that during the first case management conference, a tribunal consult with the parties on the potential for settlement of the dispute through mediation. The Rules also empower tribunals to make any directions—including the suspension of proceedings—to allow parties to adopt mediation dispute resolution methods. A mediated resolution that is reflected in a consent award may be enforceable pursuant to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which will remain important while the Singapore Convention on Mediation continues to expand its group of member states.
Other highlights from the 2025 Rules, many of which were discussed in our prior client alert, include (i) Streamlined Procedure, (ii) broader Expedited Procedure, (iii) clarification of preliminary determination powers, (iv) developments to the Emergency Arbitrator Procedure, (v) coordinated arbitrations, (vi) disclosure of third-party funding agreements, and (vii) a fee for filing a challenge to an arbitrator.
- Streamlined Procedure (Rule 13, Schedule 2): The 2025 Rules introduce the Streamlined Procedure as an alternative to the Expedited Procedure for low value disputes. The Streamlined Procedure is available where the parties agree to its application or the amount in dispute does not exceed S$1,000,000 (about US$740,000), unless the SIAC President determines that the procedure shall not apply. Parties may exclude the application of this procedure by written agreement. Under the Streamlined Procedure, the parties have 3 days to jointly nominate a sole arbitrator, failing which, or upon request, the SIAC President “shall appoint the sole arbitrator as soon as practicable.” Only a sole arbitrator may be appointed. In conducting the proceedings, the sole arbitrator has discretion in setting the timeline, but must render a final award within 3 months from the date of constitution of the tribunal, unless the registrar extends the time for making the final award.
- Expedited Procedure (Rule 14, Schedule 3): The 2025 Rules also broaden the application of the existing Expedited Procedure. To complement the new Streamlined Procedure, the Expedited Procedure is available where the amount in dispute does not exceed S$10,000,000 (about US$7.4 million) but is more than S$1,000,000.It also applies to situations where the amount in dispute does not exceed S$1,000,000 but the President has determined the Streamlined Procedure shall not apply or where the President determines that the circumstances of the case warrant application of the Expedited Procedure. Parties may also agree to conduct the arbitration under the Expedited Procedure at any time prior to the constitution of the tribunal. Under Schedule 3, the final award in Expedited Procedure cases will be issued within 6 months of the constitution of the tribunal, unless the registrar extends the time for making the final award.
- Preliminary Determinations (Rule 46): The new Rule 46 allows parties to apply to the tribunal for a “final and binding” preliminary determination of “any issue” in the arbitration where: the parties agree the tribunal may determine the issue on preliminary basis; the determination is likely to save time and costs and lead to a more expeditious resolution; or the circumstances otherwise warrant a preliminary determination. Rule 46.4 imposes a deadline of 90 days for the tribunal to render a decision or award from the date of the filing of an application for preliminary determination (unless the registrar extends the time).
- Emergency Arbitrator and Protective Preliminary Orders (Rule 12.1 and Schedule 1): Schedule 1 now allows parties to apply for emergency interim relief prior to the filing of the Notice of Arbitration, with the Notice due within 7 days of such application. Parties also now have the ability to request a protective preliminary order “directing a party not to frustrate the purpose of the emergency interim or conservatory measure requested. ”An application for such an order must be determined by the Emergency Arbitrator within 24 hours of their appointment.
- Coordinated Arbitration Procedures (Rule 17): New Rule 17 provides that, where the same tribunal is constituted in two or more arbitrations, and a common question of law or fact arises out of or in connection with all arbitrations, the tribunal may determine that the coordinated arbitrations shall be conducted concurrently or sequentially, heard together, or that one arbitration be suspended pending a determination in the other coordinated arbitration.
- Third-Party Funding (Rule 38): Rule 38 requires the parties to disclose the existence of any third-party funding agreement and the identity and contact details of the third-party funder. Tribunals may order such disclosures and consider any third-party funding agreement in apportioning costs. Parties also may not enter into a third-party funding agreement that would give rise to a conflict of interest of an arbitrator after the tribunal has been constituted.
- Challenge of Arbitrators (Rule 26 and Rule 27): A new ground of challenge has been added to Rule 26.1.In addition to challenging an arbitrator for justifiable doubts as to the arbitrator’s impartiality or independence or because the arbitrator lacks requisite qualification, an arbitrator can now be challenged if he or she becomes unable to perform their functions. Rule 27 requires payment of a “challenge filing fee,” the amount of which is set in the SIAC Schedule of Fees (S$10,000 for overseas parties effective 1 January 2025).
The 2025 Rules also adopt a number of additional interesting features. SIAC Gateway, SIAC’s cloud-based case management system, will allow parties to upload communications electronically and includes secure document upload and storage (Rule 4). Relatedly, the Rules encourage tribunals to consider and propose effective security measures around safeguarding sensitive data. The Rules allow tribunals to order sanctions, damages, or costs if a party does not take necessary steps to comply with such information security measures (Rule 61).
Other notable new rules include the ability to obtain security for costs and claims (Rules 48 and 49) and encouragement of the tribunals to consult with parties about adopting environmentally sustainable procedures (Rule 32.3(b)).
A summary of key procedures under the 2025 Rules appears below.
If you have questions about SIAC’s 2025 Rules, please contact the members of Covington’s International Arbitration Practice.
Key Procedures Under the 2025 Rules
Topic
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SIAC Rules 2025
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Commencement
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Date the Notice is received by the registrar (Rule 6)
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Deadline for response
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14 days from the date of commencement of the arbitration or the date of the Respondent’s receipt of the Notice, whichever is later (Rule 7)
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Default number of arbitrators
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One or three arbitrators, but if the parties do not agree on the number of arbitrators, a sole arbitrator will be appointed unless the registrar determines that the dispute warrants three arbitrators (Rule 19)
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Time limit for challenging arbitrator
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15 days from being notified of the appointment or becoming aware of relevant circumstances (Rule 27)
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Jurisdictional challenges
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Jurisdictional questions will be determined by the tribunal, unless the registrar determines prior to the constitution of the tribunal, that the matter should be referred to the SIAC Court for a prima facie determination (Rule 8)
The tribunal has authority to rule on its own jurisdiction and the validity of the arbitration (Rule 31)
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Non-payment of advance on costs
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Parties are jointly and severally liable for the costs of the arbitration. If a party does not pay the deposits as directed, the registrar may direct the other party to make payment of the deposits on its behalf (Rule 56)
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Confidentiality
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The parties and the tribunal shall treat all matters relating to the proceedings and the award as confidential at all times (Rule 59)
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Timeframe for
issuing award
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No timeframe specified for issuing a final award except under the Streamlined Procedure where the final award shall be made within 3 months from the date of constitution of the tribunal (Schedule 2) or under the Expedited Procedure where the final award shall be made within 6 months from the date of constitution of the tribunal (Schedule 3)
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Correction and interpretation of award and
additional awards
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Within 30 days of receiving the award, a party may provide a written notice to the registrar and the other party, requesting the tribunal to: correct any typographical, computational, or similar errors; provide an interpretation of the award; and/or make an additional award as to claims presented in the arbitration but not dealt with in the award
The tribunal may make its own corrections within 30 days of the date of the award (Rule 54)
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Summary dismissal provisions
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A party may apply to the tribunal for the early dismissal of a claim on the grounds that: a claim or defence is manifestly without merit or a claim or defence is manifestly outside the tribunal’s jurisdiction (Rule 47)
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Interim measures
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The tribunal is empowered to order any interim relief deemed appropriate (Rule 45)
An emergency arbitration procedure is also available prior to the filing of a Notice of Arbitration and prior to the constitution of the tribunal (Schedule 1)
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Arbitration costs
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Costs are determined by the registrar in accordance with the SIAC Schedule of Fees, and the registrar may determine that an additional fee beyond maximum limits prescribed in the Schedule of Fees should apply to the tribunal’s and SIAC’s fees (Rule 57)
A Schedule of Fees for 2025 was published with the 2025 Rules
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Cost allocation
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The tribunal has authority to order one party to pay the other party’s legal and other costs (Rule 58)
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