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Key Developments – SIAC Rules 2025

posted 1 month ago

The 7th edition of the Singapore International Arbitration Centre’s Rules (“SIAC Rules 2025”) came into force on 1 January 2025 and applies to arbitrations commenced on or after that date. In this update, we highlight some of the notable developments.

Streamlined and Expedited Procedure

The SIAC Rules 2025 outlines two tracks for the expeditious disposal of cases: (i) Streamlined Procedure (Rule 13 and Schedule 2), and (ii) Expedited Procedure (Rule 14 and Schedule 3).

The Streamlined Procedure is a new introduction. It will apply to disputes below SGD 1m in value or by parties’ agreement. A key feature of the Streamlined Procedure is that it envisions a documents-only arbitration and excludes document production, factual and expert evidence taking, and a hearing by default. The intention is to keep timelines tight. Under the Streamlined Procedure, a final award is to be made within three (3) months from the tribunal’s constitution. There is also a cap on costs of arbitration at 50% of the maximum limits under the Schedule of Fees.

The procedure will likely be suitable for low value disputes of a less complex nature. Unlike the Expedited Procedure, the Streamlined Procedure applies once the fall-below threshold is met, unless the President determines upon application that the procedure shall not apply. Parties that wish to preserve options may, however, contract out of the application of the Streamlined Procedure.

The SIAC Rules 2025 continues to retain the Expedited Procedure, which requires an award to be made within six (6) months from the tribunal’s constitution. While the Expedited Procedure similarly envisions a documents-only arbitration, document production, and factual and expert evidence taking are not excluded by default. A key change is the increase in the threshold for parties to request the application of the Expedited Procedure from SGD 6m to SGD 10m.

Preliminary Determination

There is now an express procedure for parties to seek a Preliminary Determination of any issue where: (i) the parties agree, (ii) the applicant is able to demonstrate that preliminary determination would contribute to time and costs savings, and a more efficient and expeditious resolution or the dispute, or (iii) the circumstances warrant it. A preliminary determination should be made within ninety (90) days from the application, unless the Registrar extends time.

Arbitral tribunals have traditionally been amenable to dealing with applications of such nature (sometimes referred to as an application for “Partial Final Award” or “Interim Award”) as part of their inherent powers. The formalisation of this procedure is welcomed as it prescribes clear timelines for parties in the absence of further directions. The Preliminary Determination procedure complements the existing procedure for Early Dismissal of Claims and Defences – where a claim or defence manifestly lacks legal merit or lies outside the jurisdiction of the tribunal.

Coordinated Proceedings

Parties can also now apply for the coordination of multiple arbitrations where the same tribunal is constituted in the arbitrations and common questions(s) of law or fact arises (Rule 17). The tribunal will have the power to order that the arbitrations be conducted concurrently or sequentially, heard together, or to suspend any of the arbitrations pending determination of other arbitration(s). This procedure would be particularly useful for disputes involving related contracts where the contracting parties are not the same and may be separately represented (ie, string contracts, or head and sub-charterparty disputes). As arbitrations that are coordinated pursuant to this procedure remain separate (ie, are not consolidated), parties may have to consider whether findings made in the other arbitration(s) are relevant or binding, and address this by agreement.

Pre-constitution – Emergency Arbitrator and Protective Preliminary Orders

In the event that relief has to be sought prior to the constitution of the tribunal, parties may have to seek orders from an Emergency Arbitrator. Under the previous iteration of the rules, an application for emergency interim relief may at the earliest be filed with the Notice of Arbitration. Under the SIAC Rules 2025, parties may file such an application up to seven (7) days prior to the submission of the Notice of Arbitration (Schedule 1, para 2 and 6). In this regard, the Emergency Arbitrator is required to establish a schedule for the consideration of the application within 24 hours of appointment (contrast to the two (2) days requirement under the previous iteration of the rules).

Parties also have the option to seek “without notice” (or ex parte) relief from the Emergency Arbitrator under the procedure for Protective Preliminary Orders (Schedule 2, para 25). This is a significant innovation. Traditionally, arbitral tribunals have no power to grant ex parte relief because of due process concerns. As a result, parties have to seek the assistance of national courts to obtain ex parte interim relief. The new Protective Preliminary Orders provisions bring the SIAC Rules in line with the handful of other arbitral rules that provision for relief on an ex parte basis (eg, DIAC Rules and Swiss Rules). The availability of seeking ex parte Protective Preliminary Orders would likely affect the circumstances under which court-ordered interim measures can now be sought under the International Arbitration Act 1994, and to some extent, the Arbitration Act 2001.

Concluding remarks

The new SIAC Rules 2025 is a welcomed development. With the introduction of more case disposal mechanisms, and the expansion of the tribunal’s powers, the new rules is a step in the right direction to improving the effectiveness and efficiency of SIAC-administered arbitrations.

If you have any queries regarding the SIAC Rules 2025, please do not hesitate to contact:

Una Khng: una.khng@helmsmanlaw.com

Matthew Teo: matthew.teo@helmsmanlaw.com

This publication is provided for general information purposes only and does not constitute legal or professional advice. It does not purport to be comprehensive or address every aspect of the matters discussed. While we strive to ensure the accuracy of the information at the time of publication, we make no representations or warranties as to its accuracy, completeness, or suitability for any particular purpose. You should seek specific legal or professional advice before taking any action based on the contents of this publication. We do not accept any liability for any loss or damage arising from any reliance placed on this publication or its contents. No lawyer-client relationship is created by this publication.

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