On April 29, 2024, the Singapore International Arbitration Centre (SIAC) released its 2023 Annual Report.
In this client alert, we outline SIAC’s key statistics for 2023, highlighting SIAC’s growth and the confidence that both regional and international users place in SIAC’s capabilities. In 2023, SIAC also released a consultation draft of the 7th edition of its SIAC Rules (“Draft Rules”), with proposed amendments aimed at, among other things, expediting the resolution of disputes and enhancing existing procedures. This demonstrates SIAC’s innovative approach and commitment to keeping its rules aligned with international trends and developments.
A year in review: 2023
In 2023, SIAC witnessed a significant increase in its caseload, with 663 new case filings, of which 97% were SIAC administered. This marked the second highest caseload recorded in the last 10 years and reflected an 85.7% rise from the 357 cases received by SIAC in 2022, and a 90.5% increase in SIAC-administered cases in 2022. In 2023, SIAC also saw its second highest total sum in dispute in the last 10 years, amounting to SGD 15.71 billion (USD 11.9 billion).
SIAC’s international presence remained strong in 2023. Of the new cases filed with SIAC, 93% were international in nature, compared to 88% in 2022. Parties from 66 jurisdictions opted to arbitrate at SIAC, which was the highest number of jurisdictions ever recorded. The unprecedented breadth of SIAC’s user base in 2023 underscores SIAC’s position as a prominent venue for international arbitration. While the top two countries in 2022 – India and the United States – continued to be among the leading foreign users in 2023, SIAC saw a surge in users from Hong Kong SAR and China in 2023 – 644 parties from Hong Kong SAR were parties to an SIAC arbitration (up from 17 parties in 2022) and 839 parties from China were parties to an SIAC arbitration (up from 53 in 2022).
The 2023 statistics also show that SIAC continued to appoint arbitrators from a wide variety of nationalities. In 2023, SIAC appointed arbitrators from 38 jurisdictions, up from 36 jurisdictions in 2022. Moreover, 35% of the 359 SIAC-appointed arbitrators were non-Singaporean, marking an increase from the 32% of non-Singaporean arbitrators appointed by SIAC in 2022.
Disputes in the trade (47%), commercial (14%), and corporate (9%) sectors remained the leading types of disputes referred to SIAC in 2023. Trade disputes increased more than twofold from 21% in 2022.
Procedural options under the SIAC Rules
As we noted in a previous client alert (SIAC Remains a Popular and Attractive Arbitral Institution), in addition to publishing case statistics, the SIAC Annual Report also shares data on utilization of the Emergency Arbitrator procedure, the Expedited Procedure, and the Early Dismissal procedure. SIAC’s 2023 statistics continue to show that these procedural options remain well utilized by its users:
- The Emergency Arbitrator (EA) Procedure was introduced by SIAC in 2010 to help parties seek emergency interim relief. In 2023, all 11 EA applications were accepted, bringing the cumulative total to 152 applications accepted since the procedure’s introduction in 2010.
- SIAC added the Early Dismissal Procedure to its SIAC Rules in 2016, and was the first major arbitral institution to incorporate such a procedure. In 2023, nine Early Dismissal applications were submitted, with three being allowed to proceed under the 2016 SIAC Rules. Since 2016, 33 Early Dismissal applications have been allowed to proceed, with 12 granted (either in whole or in part).
- SIAC introduced the Expedited Procedure in 2010 to help streamline the resolution of typically lower-value disputes (under SGD 6 million), or in cases of exceptional urgency or where the parties otherwise agree. Out of 94 Expedited Procedure applications in 2023, 41 were accepted. We expect continued utilization of the Expedited Procedure going forward, particularly given the proposed changes to the Expedited Procedure (such as raising the monetary threshold to SGD 10 million and the modification of the “exceptional urgency” criteria to where “the circumstances of the case warrant [its] application”).
SIAC’s future development and outlook
To continue enhancing the efficiency of the arbitration process, SIAC released the Draft Rules for public consultation on August 22, 2023. The Draft Rules introduced several notable features, including the implementation of a new Streamlined Procedure to provide a cost-effective and expeditious resolution method for low-value and straightforward disputes; the addition of Preliminary Determination to optimize cost and time efficiency; and the introduction of the SIAC Gateway, a centralized electronic case and document management system for increased clarity and accessibility. SIAC’s 2023 statistics and Draft Rules illustrate its proactive stance in embracing progressive practices and cementing its standing as a leading arbitral institution.
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