New Year, New SIAC Rules – the SIAC Rules 2025 offer faster dispute resolution for small disputes and enhancements to the powers of Emergency Arbitrators, Tribunals and SIAC

The 7^th edition of the Arbitration Rules of the Singapore International Arbitration Centre (SIAC Rules 2025) are a comprehensive rewrite and restructure of the previous 6^th edition of the SIAC Rules dated 1 April 2016 (SIAC Rules 2016) making the rules more logical and coherent. The Rules include some bold novel developments, such as further streamlining the procedure for small disputes and giving Emergency Arbitrators the power to make ex parte preliminary orders.

The SIAC Rules 2025 came into force on 1 January 2025 and, unless otherwise agreed by the parties, shall apply to any arbitration which is commenced on or after that date.

The spirit of the SIAC Rules 2025, is to ensure:

• the fairness of the proceedings;
• the expeditious and cost-effective conduct of the arbitration proportionate to the complexity of the claim and the amount in dispute; and
• the enforceability of any award.

Key features

The SIAC Rules 2025 introduce substantial revisions to the SIAC Rules 2016 including features described below:

1. Introduction of Streamlined Procedure for claims of under S$1 million (Rule 13)
2. Preliminary Determination (Rule 46)
3. Updates to the Emergency Arbitration process (Schedule 1)
4. Disclosure of third-party funding arrangements (Rule 38)
5. New powers for the Registrar and President (Rules 3.4, 11, 19 and 32)

A. Introduction of Streamlined Procedure for claims of under S$1 million (Rule 13 and Schedule 2)

All arbitral institutions administer smaller claims for which the standard arbitration procedure is not efficient nor cost effective.

The SIAC introduced its Expedited Procedure in 2010 as a “’fast-track” procedure for the resolution of suitable disputes. While the SIAC does not publish how many smaller claims are filed each year, there have been 896 applications for the Expedited Procedure from 2010 until the end of 2023, which provides some indication on the number of smaller claims and the popularity of expediting their resolution.

In a major revision, the SIAC is now streamlining procedures even further for smaller claims, through the introduction of the Streamlined Procedure which is set out at Rule 13 and Schedule 2 to the SIAC Rules 2025. The Streamlined Procedure is an even faster cheaper procedure to cater for small-value disputes.

The Streamlined Procedure is mandatory for disputes in which the amount in dispute does not exceed S$1,000,000 unless the President determines upon the application of a party that the Streamlined Procedure shall not apply to the arbitration. Parties can also agree to the application of the Streamlined Procedure for any size of dispute prior to the constitution of the Tribunal.

Like the Expedited Procedure, the Streamlined Procedure mandates that the case shall be determined by a sole arbitrator. However, unlike the Expedited Procedure which can be run as a compressed version of a standard SIAC arbitration, the Streamlined Procedure sets out shorter timeframes and mandatory procedural rules for the conduct of the arbitration. Further, the Streamlined Procedure offers lower fees for SIAC and the Tribunal, which shall not exceed 50% of the maximum limits based on the amount in dispute in accordance with the SIAC Schedule of Fees, unless the Registrar determines otherwise.

Given the demand for expedition, the SIAC Rules 2025 raise the monetary threshold for the Expedited Procedure to S$10,000,000 (from S$6,000,000) and provide the President with the discretion to grant an application for the Expedited Procedure when the circumstances of the case warrant it even if the monetary threshold is exceeded.

We summarise below the key differences between the Streamlined Procedure (Schedule 2) and Expedited Procedure (Schedule 3) under the SIAC Rules 2025:

The Streamlined Procedure is a welcome innovation that provides a more efficient and cost-effective option for low value and less complex disputes. It could also be used for disputes which only concern a discrete legal point. Given the limitations of the timeframe, it will not be suitable for disputes that require witness evidence to determine factual issues or quantum issues.

B. Preliminary Determination (Rule 46)

The SIAC Rules 2025 introduce a set procedure for parties to apply to the Tribunal for a final and binding preliminary determination of any issue that arises for determination in the arbitration. This procedure contrasts with the previous flexible ad hoc approach taken by parties and Tribunals under prior versions of the SIAC Rules. It follows the introduction in the SIAC Rules 2016 of a procedure for the early dismissal of a claim or defence that was manifestly without legal merit or manifestly outside the jurisdiction of the Tribunal (now Rule 47 in the SIAC Rules 2025).

The procedure in Rule 46 sets out the criteria by which the Tribunal should allow an application for preliminary determination to proceed, namely that:

• the parties agree that the Tribunal may determine such an issue on a preliminary basis;
• the applicant is able to demonstrate that the determination of the issue on a preliminary basis is likely to contribute to savings of time and costs and a more efficient and expeditious resolution of the dispute; or
• the circumstances of the case otherwise warrant the determination of the issue on a preliminary basis.

The applicant for preliminary determination is required to state the facts and legal basis supporting the application.

Rule 46 sets a timeframe for the Tribunal to determine the application, after deciding whether it should proceed and giving the parties the opportunity to be heard, of 90 days from the date of filing of the application. The Registrar is allowed to the extend the timeframe.

The Tribunal is required to provide reasons for its determination, which may be in summary form, and the determination can take the form of a decision, ruling, order or award.

This is a novel rule; most of the leading arbitration rules do not prescribe a procedure for the preliminary determination of issues. The exceptions are the International Centre for Dispute Resolution Rules 2021 (ICDR Rules) issued by the international division of the American Arbitration Association and the Arbitration Rules of the SCC Arbitration Institute 2023 (SCC Rules). Article 23 of the ICDR Rules specifies a procedure for the early disposition of issues which has a different test for whether such an application should be heard. The SCC Rules include a summary procedure in Article 29 that covers preliminary determination as well as the early dismissal of claims and defences. Notably neither of these arbitration rules specify a timeframe for the Tribunal’s consideration of such an application.

This new Rule 46 gives the Tribunal and the parties guidance on when it is appropriate for a Tribunal to determine an issue in dispute on a preliminary basis. Preliminary determination of issues may lead to time and cost savings by streamlining the issues in dispute between the parties and as such should be encouraged where appropriate. It can though result in delay if the preliminary determination does not narrow the issues sufficiently. The relatively short timeframe of 90 days would suggest that in the SIAC’s view preliminary determination is most appropriate for straightforward issues.

The procedure for the early dismissal of claims and defences manifestly without legal merit or outside jurisdiction has also been amended in the SIAC Rules 2025. The Tribunal in Rule 47 on Early Dismissal of Claims and Defences now has 45 days to determine the application (reduced from the previous 60 day timeframe in the SIAC Rules 2016) and that determination, with summary reasons, can be in the form of a decision, ruling, order or award.

In our view parties will favour the use of Rule 46 for determining issues on a preliminary basis in preference to the procedure in Rule 47 on Early Dismissal of Claims and Defences. Rule 47 requires that the Tribunal determine that any claim or defence is manifestly without merit or manifestly outside the jurisdiction which is a high threshold whereas no special legal test is specified in Rule 46.

C. Updates to the Emergency Arbitration process allowing for pre-arbitration applications and ex parte protective preliminary orders to be made (Schedule 1 Emergency Arbitrator Procedure)

The SIAC Rules 2025 revise the SIAC’s Emergency Arbitration Procedure set out in Schedule 1. This schedule is comprehensively drafted and covers the application process, the appointment of an emergency arbitrator, the challenge of an emergency arbitrator, the conduct of the emergency arbitration proceedings, protective preliminary order applications and the order or award to be issued by an emergency arbitrator.

There are three significant changes – including an innovative ex parte process for preliminary relief while the emergency interim relief application is being determined.

First, the revised schedule allows an application for emergency relief to be filed prior to the filing of the Notice of Arbitration. Under the SIAC Rules 2016, such an application could only be filed concurrently or following the Notice of Arbitration. If the application is made prior to filing of the Notice of Arbitration, the party then has 7 days to file the Notice of Arbitration or else the application shall be considered as withdrawn (unless the Registrar extends the time).  This brings the SIAC Rules 2025 up to date with the arbitral rules issued by the ICC and HKIAC.

Second, a party requiring emergency interim relief is permitted to apply for a protective preliminary order without notice to the other parties. In this case, the applicant is not required to provide the other parties with notice of the application for emergency interim relief until after the emergency arbitrator has determined the application for a protective preliminary order. A preliminary protective order is an order that directs a party not to frustrate the purpose of the emergency interim or conservatory measure requested in the application for emergency relief.

This new procedure (which was not included in the consultation draft of the Rules) provides that:

• A party can file an Emergency Arbitrator application, without notice to the other parties, for interim emergency relief and a protective preliminary order.
• If the President accepts the application for a protective preliminary order, the President will appoint the Emergency Arbitrator within 24 hours.
• The Emergency Arbitrator is to determine the application for a protective preliminary order within 24 hours of his or her appointment.
• The SIAC transmits the Emergency Arbitrator’s order to all parties to the arbitration.
• The applicant is required to deliver a copy of all case papers and communications with the Emergency Arbitrator to all the parties within 12 hours of the order being transmitted.
• The Emergency Arbitrator must provide the parties against whom a preliminary order has been made an opportunity to object and promptly determine any objection.
• Any preliminary order expires within 14 days of issuance.

Third, some timeframes have been shortened from those in the SIAC Rules 2016. Any challenge to the appointment of the Emergency Arbitrator has to be made within 24 hours of appointment not 2 days. The Emergency Arbitrator needs to establish a schedule for the procedure within 24 hours not 2 days. The time for the Emergency Arbitrator to make any order or award has not changed, as was proposed in the consultation draft, and is still 14 days from appointment.

There have been 152 Emergency Arbitrator applications from 2010 when it was introduced to the end of 2023.  Allowing for the application to be made prior to the filing of the Notice of Arbitration and introducing an ex parte protective preliminary order, increases the utility of the procedure where truly urgent interim relief is required.

D. Disclosure of Third-party funding arrangements (Rule 38)

The SIAC Rules 2025 include a standalone Rule 38 Third-Party Funding which sets out provisions governing the disclosure of third-party funding.

Third party funding for arbitration has been allowed in Singapore since 2017, after the introduction of the SIAC Rules 2016. Consequently, the SIAC issued a Practice Note to Arbitrators on 31 March 2017 to ensure that prospective arbitrators disclose any relationships with third party funders prior to appointment and that a Tribunal has the power to make enquiries as to funding relationships.

In a welcome development given the growing prevalence of third-party funding in APAC, the SIAC Rules 2025 go further than the Practice Note by putting a positive duty of disclosure on the parties (consistent with that set out in the 2018 HKIAC Administered Arbitration Rules and 2021 ACICA Arbitration Rules). The SIAC Rules 2025 require that parties disclose the existence of any third-party funding relationship and the identity and contact details of any funder in:

• the Notice of Arbitration;
• the Response to the Notice of Arbitration;
• applications for consolidation, joinder and to appoint an emergency arbitrator; and
• as soon as practicable upon concluding a third party funding relationship.

Rule 38 also allows the Tribunal to order the disclosure of details of the third party funder’s interest in the outcome of the proceeding and whether the third party funder has committed to undertake adverse costs liability.

E. New powers for the Registrar and President of the SIAC Court

One of the interesting features of the SIAC Rules 2025 are the new powers for the Registrar and President of the SIAC Court.

Given the increasing number of procedural applications set out in Section III of the SIAC Rules 2025 that can be made by the parties and determined by the President and/or the SIAC Court prior to the constitution of the Tribunal (for appointment of an emergency arbitrator, expedition, consolidation and joinder), Rule 3.4 allows the Registrar to determine the acceptance and ordering of any procedural applications. Rule 11 gives the Registrar the new power, prior to the constitution of the Tribunal, to conduct administrative conferences with the parties to discuss any procedural or administrative directions to be made by the Registrar under these Rules.

The SIAC Rules 2025 clarify the powers of the President on the appointment of arbitrators. The SIAC Rules 2025 explicitly state that the President can refuse to appoint any arbitrator nominated by the parties, the co-arbitrators or a third person (Rule 19.4).

Reflecting provisions in the arbitral rules issued by the ICC and LCIA, the SIAC Rules 2025 specify that the President should appoint a sole arbitrator or presiding arbitrator of a different nationality to the parties where the parties are of different nationalities unless the President determines it to be appropriate otherwise (Rule 19.7).

Further, the SIAC Rules 2025 allow the President to “take any necessary measure to constitute an independent and impartial Tribunal” if under the terms of an appointment procedure agreed by the parties, there is a substantial risk of unequal treatment that may risk affecting the validity or enforceability of the award (Rule 19.10).

The SIAC Rules 2025 include a provision in Rule 32.8 which allows the President to intervene in the arbitral procedure by requesting the parties and the Tribunal to attend an administrative conference to identify and discuss the procedures that will be most appropriate and efficient for the case (the current SIAC Rules 2016 only allow the President to request that the parties and Tribunal convene a meeting). This looks like a safeguard measure to allow the President to prevent an arbitration going wrong.

Conclusion

Other new features of the SIAC Rules 2025 include provisions on the appointment of a Tribunal Secretary, prompts for parties to consider amicable dispute resolution at the outset, the encouragement of Tribunals to consult with parties on settlement and environmentally sustainable procedures, new powers for the suspension and termination of the arbitration by the Registrar or Tribunal and the introduction of an electronic case management system called SIAC Gateway. SIAC Gateway has the potential to assist Tribunals and the SIAC with better management of the slew of electronic documents filed by parties.

The SIAC Rules 2025 are more comprehensive and prescriptive than the previous SIAC Rules 2016, offering Tribunals and parties greater clarity over how an arbitration should be conducted. The reorganization brings together related rules in a logical manner making it easier for inexperienced parties, counsel and Tribunals, for example the new Rule 44 Non-participation and Non-compliance makes it clearer what the Tribunal can do in the event of a party defaulting.

The introduction of the Streamlined Procedure is a commendable attempt to provide an efficient and more cost-effective solution to small cross border disputes. This will no doubt prove as popular as the Expedited Procedure.

The SIAC Rules 2025 address procedural issues that have arisen in the past, seek to prevent issues arising by giving parties and Tribunals greater guidance, while also giving the President the means to intervene if required.