Singapore launches arbitration chamber

NOVEMBER last year marked the launch of the Singapore Chamber of Maritime Arbitration (SCMA), which is designed to provide speedy and reliable resolution of shipping disputes in Singapore. Given that the city is the regional base for over 4,000 international shipping companies, the SCMA hopes to capture a larger share of the global maritime legal business.

“There was a common misunderstanding that Singapore arbitration meant that the dispute must be resolved in accordance with Singapore law, causing concern to those unfamiliar with our laws,” says Dato’ Jude Benny, board member of the Singapore Maritime Foundation and chairman of the working group responsible for establishing and launching the new chamber.

“Singapore arbitration merely refers to the seat or place of administration of the arbitration. The applicable law can be chosen by the parties at the time they conclude their contract. SCMA hopes to facilitate and encourage parties to choose Singapore for their arbitrations by providing a professional and efficient structure with an international panel of highly qualified arbitrators with diverse expertise and background,” he adds.

“There was previously a tendency to remit cases out of the Singapore jurisdiction, in favour of home jurisdictions, but I am pleased to note that recent amendments to the Legal Profession Act have seen a significant drop in this trend,” said Benny, a board member of the Singapore Maritime Foundation (SMF).

Also at the launch, which took place at Raffles Hotel, was Lim Hwee Hua, minister of state for finance and transport, who unveiled the SCMA logo. “In June this year, the Ministry of Law amended the Legal Profession Act to allow foreign lawyers to represent parties for arbitration activities in Singapore. As such, foreign lawyers can now advise, prepare documents and provide assistance in arbitration proceedings using Singapore law, without the need to participate jointly with a Singapore lawyer for such cases,” says Mrs Lim. “This is a positive step in attracting maritime companies and international maritime arbitrators to conduct their arbitration cases in Singapore.”

The local shipping community has already voiced its support for the SCMA, with six major companies presenting letters of pledge to use the chamber’s facilities for dispute resolution and to include SCMA arbitration clauses in their maritime-related contracts where appropriate.