Speech by Law Minister K Shanmugam at the Singapore International Arbitration Centre's 'India: Prime Global Business Destination - An Arbitral Perspective' Conference

08 SEP 2010

8 Sep 2010 Posted in Speeches

Your Excellency, Minister of Law and Justice of India, Dr Veerappa Moily,
Honourable Judge of Appeal, Justice V K Rajah,
Distinguished guests,
Ladies and gentlemen,

  1. Good morning, and thank you for coming to this morning’s conference.

  2. I had the privilege of visiting Mumbai earlier this year to participate in a conference that the Singapore International Arbitration Centre (SIAC) had organised. The trip gave us the opportunity to see for ourselves the renewed dynamism in the Indian economy as it rebounds from the global economic slowdown of the past two years.

  3. India’s economy has grown rapidly over the past decade. Growth this year may top eight per cent, up from an already impressive 6.8 per cent in 2009. Singapore, which is among India’s largest investors, has a strong stake in India’s economy. And the converse is also true. Singapore was the top destination for overseas investment by Indian companies between 2008 and 2009, and there are over 4,000 Indian companies operating in Singapore today.

  4. In terms of trade, India was Singapore’s 11th largest trading partner in 2009, and the trade volume between both countries currently stands at S$21.6 billion for 2009 – up from S$6.8 billion in 2004.

  5. The Comprehensive Economic Cooperation Agreement between Singapore and India, which entered into force in August 2005, lays the groundwork for greater cooperation between both countries in goods and services trade, investment protection, and also in other areas such as science and technology, education, intellectual property, and the media.

  6. India’s rapid economic growth will mean tremendous business opportunities in India for investors. However, despite the best laid plans, investors always have to be prepared for the possibility that disputes may arise. Increasingly, companies and investors are seeing the benefits of resolving disputes through arbitration rather than through traditional court systems in many places in the world.

  7. When I visited India earlier this year, I made several points about the role Singapore could play as a venue for parties who want to pursue arbitral proceedings. And we see this as being an integral part of the attraction of India as a investment destination, and people who invest in the major countries in the region, whether China, India, Indonesia or Southeast Asia, generally look for a neutral venue to go for an arbitration. Having that easily accessible neutral venue enhances the attractiveness of the investment destination.

  8. First, we are recognised as a neutral venue that straddles both Asia and the West, geographically as well as culturally.

  9. Second, Singapore has adopted international best practices in our legislative approach towards arbitration. We have adopted the UNCITRAL Model Law for some years now, and we are also a signatory to the New York Convention. Parties in arbitration proceedings know that their awards in Singapore are recognised and enforceable in more than 140 countries. Our International Arbitration Act also empowers the Courts to grant interim orders in aid of international arbitration, regardless of whether the arbitration takes place in Singapore or not.

  10. Third, our Courts respect arbitral proceedings and awards. This consistent emphasis on upholding arbitration awards was clearly stated by the Court of Appeal in a 2009 decision and has been consistently applied by all courts here.

  11. Fourth, Singapore is now host to many of the world’s top arbitral institutions. Besides SIAC, the American Arbitration Association, the Permanent Court of Arbitration, the ICC’s International Court of Arbitration, the Arbitration and Mediation Centre of the World Intellectual Property Organization, and the International Centre for Settlement of Investment Disputes, all have a presence in Singapore.

  12. The SIAC, in particular, is well placed to serve as a neutral administrator for dispute resolution proceedings. Almost half of new international case references for the SIAC in 2009 involved cases where the parties have had no connection to Singapore. SIAC continues to deliver on its promise to resolve cases expediently, and it is not uncommon to have an award issued within 18 months of the initial notice of arbitration, and within nine months for simple cases.

  13. Maxwell Chambers, where we are today, is a premier, purpose-built ADR facility, and I hope participants in today’s conference will take the time to have a closer look at what it has to offer.

  14. Finally, I want to point out also that we have taken a very liberal approach to the practice of arbitration in Singapore. Parties, regardless of nationality, can conduct their hearings in Singapore, and are at liberty to engage lawyers of any nationality from any country, and use any governing law in their proceedings.

  15. All these factors will facilitate the resolution of any disputes that parties need to site in a third party neutral venue. Indian parties are increasingly using Singapore for arbitration.

  16. Your Excellency, I am pleased that you are able to join us today and see first-hand the infrastructure that we have put in place to support arbitration work here and deliver the keynote address at this conference.

  17. Thank you, and I hope you have a successful and fruitful conference ahead.

Last updated on 25 Nov 2012