SIAC Rules 2025: Enhancing Efficiency and Transparency in Arbitration

ACCELERATED PROCEEDINGS

Streamlined Procedure: One of the most notable changes in the SIAC Rules 2025 is the introduction of the Streamlined Procedure, which applies to disputes valued at less than S$1 million or where the parties agree to its application prior to the constitution of the tribunal. This procedure mandates the appointment of a sole arbitrator and requires the award to be rendered within three months. Designed for maximum efficiency, it excludes document production and witness evidence unless deemed necessary by the tribunal. Additionally, costs are capped at 50% of the maximum limits under the Schedule of Fees, making it a cost-effective option for resolving lower-value disputes. This procedure is particularly advantageous for straightforward cases where a swift resolution is desired.

Expedited Procedure: The threshold for the Expedited Procedure has been raised from S$6 million to S$10 million. This procedure, which also involves a sole arbitrator, requires that the award be issued within six months of the constitution of the tribunal. Crucially, the new rules provide that a hearing must be held if the tribunal so decides or if any party requests a hearing, thus ensuring that the expedited procedure does not compromise the parties’ right to be heard. The Expedited Procedure is designed for cases that, while more complex than those suitable for the Streamlined Procedure, would still benefit from a more expeditious resolution process.

Emergency Arbitrator Procedure: Significant improvements have been made to the Emergency Arbitrator Procedure. Parties may now request the appointment of an Emergency Arbitrator before filing a Notice of Arbitration, which must then be filed within seven days of the request. The new rules also introduce the possibility of obtaining protective preliminary orders on an ex parte basis, with decisions on such applications required within 24 hours. The ability to seek emergency relief before the formal commencement of arbitration proceedings addresses a critical need for immediate action in certain situations.

PROCEDURAL INNOVATIONS AIMED AT INCREASING EFFICIENCY

Administrative Conference (Rule 11): The new rules authorize the SIAC Registrar to conduct administrative conferences to resolve procedural or administrative issues before the tribunal is constituted. This provision is designed to resolve preliminary issues efficiently and ensure a smooth arbitration process once the tribunal is constituted. These conferences facilitate the clarification of procedural steps and the early resolution of any administrative concerns and reflect a practice already implemented by some other arbitral institutions (such as the American Arbitration Association and the International Centre for Dispute Resolution).

Coordinated Proceedings (Rule 17): Rule 17 introduces a mechanism for the coordinated resolution of multiple arbitrations involving common legal or factual issues and the same tribunal. This complements Rule 16, which provides for the consolidation of arbitrations related to the same legal relationships or underlying transactions in instances where the arbitration agreements are compatible. Rule 17 allows for concurrent or sequential hearings, procedural alignment, or the suspension of arbitrations pending decisions in other arbitrations. This innovation aims to streamline the resolution of complex, multifaceted disputes and reduce the risk of inconsistent outcomes. It is particularly useful in cases involving multiple contracts or parties, where coordination can significantly improve efficiency and reduce the risk of conflicting outcomes. For instance, disputes that arise from different transactions and involve different parties but are governed by the same standard agreements (e.g., a platform’s terms and conditions) could, in some instances, benefit from coordinated proceedings.

Preliminary Determination (Rule 46): Rule 46 explicitly empowers tribunals to make preliminary determinations on certain issues early in the proceedings. This mechanism is intended to save time and costs by resolving threshold issues that may expedite the overall resolution of the dispute. Applications for preliminary determinations can be made with the consent of the parties if the requesting party can demonstrate efficiency benefits or if the circumstances of the case warrant such a determination. The tribunal is required to issue its decision within 90 days of the application. This provision formalizes a practice that has been used informally and provides clear guidelines for its application.

Timeline for Awards (Rule 53): To provide greater certainty, the SIAC Rules 2025 now require tribunals to submit draft awards within 90 days of the last directed oral or written submission, unless the SIAC Registrar determines otherwise. This firm timeline aims to help parties manage their expectations and plan accordingly. Additionally, the rules require tribunals to provide an estimate of the time needed to issue an award within 30 days of the last oral or written submission, which further enhances predictability.

OTHER INNOVATIONS

Third-Party Funding (Rule 38): The SIAC Rules 2025 include comprehensive provisions regarding third-party funding. Parties are now required to disclose the existence of any third-party funding agreements and the identity of the funders. The tribunal can order the disclosure of details of the funding arrangement and take such arrangements into account when apportioning costs. This is particularly relevant in determining whether the third-party funder has undertaken to assume adverse cost liability. In addition, the rules prevent parties from entering into third-party funding agreements that may create conflicts of interest after the tribunal has been constituted. Rule 38 reflects the guidance on third-party funding previously set out in the SIAC’s Practice Note on Cases Involving External Funding.

Security for Costs and Claims (Rules 48 and 49): The SIAC Rules 2025 contain explicit provisions on the ordering of security for costs and claims, thus eliminating ambiguities in the previous rules. The rules clarify that security for costs can only be ordered against parties asserting claims, counterclaims, or cross-claims.

DRAFT SIAC INSOLVENCY ARBITRATION PROTOCOL

A few days after releasing the SIAC Rules 2025, SIAC also released a draft Insolvency Arbitration Protocol for public consultation. Designed to address disputes arising from or in anticipation of insolvency proceedings, the Protocol adapts SIAC Rules to provide a structured, efficient, and time-sensitive framework for arbitration in insolvency contexts. The Protocol is a novel initiative by an international arbitration institution, encouraging the use of arbitration to resolve insolvency-related disputes and claims.

The Protocol applies when parties agree to its use, whether before a dispute arises, during insolvency proceedings, or upon the recommendation of a court or insolvency professional. Significant procedural changes include reducing the time for responding to a notice of arbitration to seven days and requiring the appointment of the tribunal within 14 days. Final awards must be issued within six months of the constitution of the tribunal, which is in line with SIAC’s Expedited Procedure.

Unless otherwise agreed, the seat of arbitration is Singapore, and Singapore law governs the arbitration agreement. Generally, a sole arbitrator is appointed, unless complexity or other circumstances warrant three arbitrators. Arbitrators may be selected from SIAC’s forthcoming Specialist Insolvency Disputes Panel, which will  be composed of experts in the field.

The Protocol encourages mediation and allows arbitration to be suspended for up to three weeks to facilitate settlement discussions. Successful mediations may lead to consent awards, provided the terms are consistent with applicable law, public policy, and the jurisdiction of the tribunal. Tribunals are also encouraged to consider joining additional parties at the outset. It is not yet clear how this provision will play out in practice, particularly where the party the tribunal seeks to join does not consent.

To facilitate coordination with insolvency proceedings, parties may request anonymized or redacted awards for disclosure and share arbitration updates as needed. By addressing the unique challenges of insolvency-related disputes, the Protocol aims to enhance procedural efficiency and ensure effective resolution in these complex cases.

EMBRACING AN EFFICIENT PATH FORWARD

The SIAC Rules 2025 represent a significant step forward in the evolution of international arbitration. By introducing new procedures and enhancing existing mechanisms, these rules aim to make arbitration more efficient, transparent, and user-friendly. Parties to SIAC-administered arbitrations can expect a streamlined and modernized process that upholds the highest standards of arbitral integrity. The comprehensive updates ensure that SIAC remains at the forefront of international arbitration, providing a robust framework for the fair and efficient resolution of disputes. Similarly, the draft Insolvency Arbitration Protocol is a groundbreaking initiative by an international arbitration institution, promoting the use of arbitration to resolve insolvency-related disputes and claims.

At McDermott, our exceptionally skilled international arbitration practitioners have developed substantial experience in international arbitration, including under the SIAC Rules. We are well-equipped to navigate the complexities of international commercial arbitration and its ever-evolving rules, delivering bespoke and efficient legal solutions tailored to your specific requirements worldwide.

For further assistance with arbitration matters or advice, please contact any of the authors or your regular McDermott lawyer.