Partner Singapore
"The monetary threshold for the Expedited Procedure has been increased to S$10m (about US$7.4m)."
This article not only highlights the key differences between the SIAC Rules currently in force (the “2016 SIAC Rules”) and the 2025 SIAC Rules that users of the SIAC as an arbitration institution should be aware of going into the New Year, but also comments on the impact on arbitration agreements that will incorporate the 2016 SIAC Rules from 1 January 2025 onwards.
What are the key differences between the 2016 SIAC Rules and the 2025 SIAC Rules?
1. Introduction of the Streamlined Procedure
- 2016 Rules: did not include a Streamlined Procedure; and
- 2025 Rules: introduce a Streamlined Procedure for disputes with an amount not exceeding S$1m (approximately US$740,000) or where parties agree to its application. This procedure mandates the appointment of a sole arbitrator and requires the final award to be issued within three months from the tribunal’s constitution. Additionally, the tribunal’s fees and SIAC’s administrative fees are capped at 50% of the maximum limits under the Schedule of Fees, enhancing cost-effectiveness.
2. Expansion of the Expedited Procedure
- 2016 Rules: the Expedited Procedure applied to disputes not exceeding SS$6m; and
- 2025 Rules: the monetary threshold for the Expedited Procedure has been increased to S$10m(about US$7.4m). Furthermore, it is now explicit that a hearing must be held if any party requests one under this procedure.
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"Parties can now request protective preliminary orders to prevent actions that could frustrate the purpose of the requested emergency measures, with determinations required within 24 hours of the Emergency Arbitrator’s appointment."
3. Preliminary Determination
- 2016 Rules: did not explicitly provide for preliminary determinations; and
- 2025 Rules: introduce a procedure allowing parties to apply for a final and binding preliminary determination on any issue in the arbitration. The tribunal is required to render its decision within 90 days from the application date, promoting expedited resolutions of specific issues.
4. Emergency Arbitrator and Protective Preliminary Orders
- 2016 Rules: provided for the appointment of an Emergency Arbitrator for urgent interim relief after the Notice of Arbitration was filed; and
- 2025 Rules: enhance the Emergency Arbitrator procedure by allowing parties to apply for emergency interim relief prior to filing the Notice of Arbitration, provided the Notice is filed within seven days of such application. Additionally, parties can now request protective preliminary orders to prevent actions that could frustrate the purpose of the requested emergency measures, with determinations required within 24 hours of the Emergency Arbitrator’s appointment.
5. Coordinated Proceedings
- 2016 Rules: did not expressly provide for coordinated proceedings; and
- 2025 Rules: introduce provisions allowing the same tribunal to coordinate multiple arbitrations involving common questions of law or fact. This coordination can include conducting arbitrations concurrently or sequentially, hearing them together, or suspending one pending the outcome of another, thereby enhancing procedural efficiency in complex cases.
"But what happens if your arbitration agreements incorporate the 2016 SIAC Rules rather than the 2025 Rules?"
6. Disclosure of Third-Party Funding
- 2016 Rules: did not mandate disclosure of third-party funding arrangements; and
- 2025 Rules: require parties to disclose the existence of any third-party funding agreements, including the identity and contact details of the funder. Tribunals may also order further disclosures regarding the funder’s interest in the arbitration’s outcome and their commitment to adverse costs liability. This measure aims to enhance transparency and address potential conflicts of interest.
7. Timeframe for Issuing Awards
- 2016 Rules: the timeline for submitting the draft award was linked to the tribunal declaring the proceedings closed, allowing for flexibility but less certainty; and
- 2025 Rules: establish a fixed timeframe, requiring tribunals to submit the draft award to the SIAC Secretariat within 90 days from the date of the last directed oral or written submission, unless extended by the Registrar. This change provides greater predictability regarding the duration of proceedings.
8. Promotion of Amicable Dispute Resolution
- 2016 Rules: did not explicitly encourage alternative dispute resolution methods within arbitration proceedings; and
- 2025 Rules: encourage early settlement of disputes through mediation and other amicable methods. Tribunals are advised to consult with parties during the first case management conference about the potential for settlement and may suspend proceedings to facilitate such processes.
But what happens if your arbitration agreements incorporate the 2016 SIAC Rules rather than the 2025 Rules?
Contracts that explicitly incorporate the 2016 SIAC Rules will typically continue to operate under those rules, even after the 2025 SIAC Rules come into force, unless the parties agree otherwise. Here’s how it generally works:
1. Applicability of the 2016 SIAC Rules
- if a contract explicitly refers to the 2016 SIAC Rules, those rules remain binding for disputes arising under that contract; and
- Tthe parties’ agreement to specific procedural rules at the time of the contract governs the arbitration process.
2. Application of the 2025 SIAC Rules
- if a contract refers broadly to the “SIAC Rules,” without specifying the version, the latest rules in force at the time of the arbitration (i.e., the 2025 Rules) will apply; and
- SIAC’s practice and arbitration law generally favour applying the most current rules to ensure procedural efficiency and modern practices.
3. Parties’ Autonomy to Update Rules
- even if the 2016 SIAC Rules are incorporated, parties can mutually agree to apply the 2025 SIAC Rules, either before or during arbitration; and
- this is often desirable for access to the newer rules’ benefits, such as the Streamlined Procedure or updated disclosure requirements.
| Aspect | 2016 SIAC Rules | 2025 SIAC Rules |
|---|---|---|
| Streamlined Procedure | Not included. | Introduced for disputes ≤ S$1m; sole arbitrator; final award within three months; fees capped at 50%. |
| Expedited Procedure | Applied to disputes ≤ S$6m. | Threshold increased to S$10,000,000; mandatory hearing if requested by any party. |
| Preliminary Determination | Not explicitly provided. | Allows binding preliminary decisions on specific issues within 90 days of application. |
| Emergency Arbitrator & Protective Preliminary Orders | Relief allowed only after Notice of Arbitration is filed. | Permits applications before filing Notice (to be filed within seven days); protective orders for urgent measures included. |
| Coordinated Proceedings | No express provision. | Permits coordination of multiple arbitrations with common questions of law or fact. |
| Third-Party Funding Disclosure | Not required. | Mandates disclosure of funding arrangements, funder identity, and their interest or liability for costs. |
| Timeframe for Awards | Linked to tribunal closing proceedings; flexible but uncertain. | Fixed timeframe: draft award submitted within 90 days of final submission unless extended by the Registrar. |
| Amicable Dispute Resolution | No explicit encouragement. | Encourages mediation or settlement; tribunals may suspend arbitration to facilitate resolution. |
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