OPENING OF THE SINGAPORE INTERNATIONAL MEDIATION CENTRE 5 NOVEMBER The Honourable the Chief Justice Sundaresh Menon

Transcription

1 OPENING OF THE SINGAPORE INTERNATIONAL MEDIATION CENTRE 5 NOVEMBER 2014 The Honourable the Chief Justice Sundaresh Menon Distinguished guests Colleagues Ladies and gentlemen 1. Thank you for being with us for the opening of the Singapore International Mediation Centre. It gives me great pleasure to mark this important development in the Singapore legal landscape, and to commemorate what is surely a significant milestone in our quest to become a leading hub for dispute resolution services. Singapore s growth as a dispute resolution services hub 2. We have seen a dramatic growth in trade and investment in Asia in recent years. Between 2007 and 2012, Foreign Direct Investment (FDI) inflows into Asia have grown from US$364.9 billion to US$406.8 billion 1, with ASEAN countries showing a robust 30% growth in FDI in the same period. 2 ASEAN trade was valued at US$2.51 trillion in and is expected to continue to grow. 1 Source: United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2013 (Annex table 1 FDI flows, by region and economy, , Pg 214). 2 Between 2007 and 2012, FDI inflow into ASEAN grew from US$85.64 billion to US$ billion. Source: United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2013 (Annex table 1 FDI flows, by region and economy, , Pg 214). 3 ASEAN Statistics Website, External Trade Statistics Table 18: Intra- and extra-asean trade (Annual): < 1

2 3. Accompanying this growth, has been a corresponding increase in the need for quality dispute resolution services, in particular for cross-border commercial disputes. 4. Singapore has enjoyed a measure of success in emerging as a key neutral venue for the resolution of such disputes. In part, this stems from the fact that our legal system has a reputation for being honest, fair and efficient. This, coupled with a robust legal infrastructure, high levels of connectivity and a convenient geographical location have all worked together in our favour. 5. This can be seen especially in the international arbitration sector. Today, Singapore is recognised as a regional leader in the international arbitration space in Asia, and is (together with Tokyo and Paris) the third most preferred seat of arbitration in the world behind London and Geneva. 4 The Singapore International Arbitration Centre (SIAC), which was established in 1991, is now the fourth most preferred arbitration institution in the world It also bears noting that a significant proportion of SIAC s case load is made up of international cases, with nearly half of SIAC s 2013 cases having no connection to Singapore. 6 The value of claims arbitrated at the SIAC has also 4 Source: The White & Case 2010 International Arbitration Survey: Choices of International Arbitration: < 5 Source: The White & Case 2010 International Arbitration Survey: Choices of International Arbitration: < 6 Source: SIAC Annual Report 2013, Pg 4: < 2

3 increased from an average value of S$15.36 million in 2012 to S$24.44 million in To develop Singapore further as the choice jurisdiction for dispute resolution in Asia, we must continue to build competencies across the entire suite of dispute resolution solutions. On top of offering top-notch litigation and arbitration services, we must position ourselves to offer similarly high-quality and professional services in the areas of mediation and other alternative dispute resolution options. Mediation in Singapore 8. Mediation will be familiar to most of us here. It allows parties to arrive at a mutually acceptable solution to a conflict. Such a solution will often consist of a mix of legal and non-legal elements. It is a natural complement to arbitration and litigation, and is a particularly attractive means of dispute resolution for businesses because of its ability to help preserve the relationships between disputing parties even while they retain autonomy over the process and the outcome. 9. Organisations such as the Singapore Mediation Centre, the Primary Dispute Resolution Centre (PDRC) and the Community Mediation Centre have, over the years, played important roles not only in helping to resolve conflicts in an amicable and practical manner, but also in raising awareness of mediation as a critical means of dispute resolution. 7 Ibid. 3

4 10. That said, a large proportion of the cases mediated at the PDRC and Community Mediation Centre, are domestic in nature. There has not hitherto been any organisation that focusses specifically on providing international commercial mediation services for cross-border disputes. The International Commercial Mediation Working Group 11. It was against this backdrop that in April 2013, the Minister for Law and I appointed Mr Edwin Glasgow CBE QC and Mr George Lim SC to co-chair a Working Group to assess and make recommendations on what we should do in order to successfully develop Singapore into a centre for international commercial mediation. The Working Group featured both local and international experts, all of whom willingly contributed their wide experiences to this task. We have been admirably served by the tireless efforts of Edwin and George and the entire team. 12. The Working Group, after having undertaken an extensive survey of the mediation landscape both in Singapore and internationally, submitted its report and recommendations on 29 November It examined developments in mediation accreditation and analysed the current legal framework to assess whether legislative changes should be implemented to encourage the growth of international commercial mediation in Singapore. The Working Group also considered the existing legal infrastructure to determine how international commercial mediation services may be integrated with our existing suite of dispute resolution services and service providers. 4

5 13. Having regard to the vibrant trade and investment opportunities in Asia and the corresponding need in such an environment for trusted and efficient dispute resolution solutions, the Working Group submitted six key recommendations aimed at developing Singapore s position as a centre for international commercial mediation. Of these recommendations, I highlight three: a. The establishment of an international mediation service provider to offer, among its services, a quality panel of international mediators and experts, as well as innovative products and services focused on needs of users; b. The establishment of a professional body to set standards and provide accreditation for mediators; and c. The enactment of relevant legislation to strengthen the framework for mediation in Singapore I am pleased to say that the Working Group s recommendations have been well received and steps are being taken to consider how the various recommendations can be implemented. 9 8 The remaining 3 recommendations by the Working Group are: (1) To extend existing tax exemptions and incentives applicable for arbitration to mediation; (2) To enhance existing rules and Court processes to encourage litigants to use mediation; and (3) To reach out and promote the use of mediation services by target markets and key industries. 9 Source: Ministry of Law press release dated 3 December 2013, Commercial Dispute Resolution Services In Singapore Set To Grow : < 5

6 The Singapore International Mediation Centre 15. The establishment of the Singapore International Mediation Centre is but one, albeit one of the most important, of the recommendations of the Working Group. 16. As I highlighted earlier, there has not been an organisation in Singapore that is focussed specifically on providing quality international commercial mediation services. The Singapore International Mediation Centre will fill that gap and this will constitute a significant step towards developing a more complete suite of dispute resolution services available in Singapore. It also serves to demonstrate our commitment to mediation and to the development of Singapore as a dispute resolution services hub. 17. These are exciting times for cross-border trade and investment. However, with every commercial transaction, complex or otherwise, there comes the risk of disagreement and dispute and the Singapore International Mediation Centre will take its place among other service providers working to meet the needs of consumers in this environment. 18. Mediators based in Singapore and elsewhere will also benefit from the establishment of the Singapore International Mediation Centre, as this will open up new opportunities for them to expand their portfolio of cross-border work. 6

7 Setting the standard for mediation practice in Singapore 19. Of course there will be new challenges. One of these is to ensure that mediators and mediation practice in Singapore achieve and maintain high standards of professionalism and excellence. 20. This brings me to the other significant recommendation of the Working Group which I have highlighted, namely the creation of a professional body to set standards and provide accreditation for mediators. The Singapore International Mediation Institute (SIMI), as this body is to be called, will act as the regulatory body for mediators and mediation in Singapore. It will be responsible for certifying the competency of mediators through an accreditation process and ensuring that accredited mediators carry out their duties as mediators in accordance with the highest professional standards. Strengthening the legal framework for mediation by enacting relevant legislation 21. To further strengthen the legal framework for mediation in Singapore, I am pleased to highlight that the Ministry of Law is presently working on a proposed Mediation Bill. The proposed Bill is based on yet another of the recommendations by the Working Group, and will include provisions relating to the enforceability of mediated settlements by the Singapore Courts and the confidentiality and admissibility of communications made in the course of mediation. 22. I believe that the proposed Bill will not only provide more clarity and certainty for users and providers of mediation services, particularly in areas where the law is 7

8 unclear; it will also bolster the confidence that users have in mediation services in Singapore. Conclusion 23. The opening of the Singapore International Mediation Centre today marks a very exciting point in our journey. I am sure that the Singapore International Mediation Centre will come to set the benchmark for quality international commercial mediation services, and this will add to our standing as a dispute resolution services hub. 24. I am deeply grateful to the Co-Chairs and members of the Working Group for their work and effort in preparing their final report and recommendations and I thank all those who have applied themselves to get us to this point. Thank you very much. 8