Speech by Minister of State, Ministry of Law and Ministry of Transport, Mr Murali Pillai SC, on the Second Reading of the Singapore International Commercial Court (International Committee) Bill

12 November 2024 Posted in Parliamentary speeches and responses

1.          Mr Speaker, Sir, on behalf of the Minister for Law, I beg to move, “That the Bill be now read a Second time.”

Introduction

2.          The Singapore International Commercial Court (International Committee) Bill (the “Bill”) establishes an International Committee of the Singapore International Commercial Court (“International Committee”).

3.          This body will hear prescribed appeals of international commercial disputes from prescribed foreign jurisdictions.

4.          Before I delve into the specifics of the Bill, allow me to provide some context on how the proposals within this Bill are to be positioned within the present dispute resolution framework.

Background and Overview

5.          Singapore has established itself as a leading international dispute resolution hub with a comprehensive suite of international offerings.

6.          In addition to our domestic courts, we have an ecosystem built on three pillars:

(a)        First, international arbitration. In addition to the Singapore International Arbitration Centre (“SIAC”), there are also other leading international arbitration centres that have established a presence here, including the Permanent Court of Arbitration, the ICC International Court of Arbitration, the World Intellectual Property Organization (WIPO) Arbitration and Mediation Center, and the American Arbitration Association’s International Centre for Dispute Resolution.

(b)        Second, international litigation, through the Singapore International Commercial Court (“SICC”); and

(c)        Third, international mediation, facilitated by our mediation centres like the Singapore International Mediation Centre (“SIMC”).

7.          These three pillars work in harmony to offer a holistic, three-part approach to dispute resolution for commercial disputes.

8.          Depending on the nature and stage of the dispute, commercial parties can adopt the most suitable dispute resolution modality for their needs. This includes moving between the different modalities where necessary.

SICC and Rationale of the International Committee

9.          The SICC was established in 2015 and is specifically designed to handle transnational and cross-border commercial disputes that may have little connection to the actual physical jurisdictions they may arise from.

10.          It offers a bespoke procedural regime for international commercial disputes, drawing upon international best practices, and is attuned to the needs and realities of international commerce.

(a)        First, the SICC panels comprise eminent international jurists, from civil and common law traditions, with deep expertise and experience in hearing commercial cases.

(b)        Second, the SICC allows foreign lawyers and law experts a right of audience before the Court, upon successful registration.

(c)        Third, there is procedural flexibility in how parties may conduct their cases before the SICC.

11.          Since its introduction, the SICC’s caseload increased by about 30% in 2023, with a substantial increase in fresh filings in the SICC over the past two years.

(a)        Furthermore, the SICC was voted the most used international commercial court globally in 2024 in the Singapore International Dispute Resolution Academy International Dispute Resolution Survey 2024.

(b)        Users who voted include users of dispute resolution mechanisms, including businesses, in-house and external counsel, from 26 countries.

12.          Through the establishment of the International Committee and the availability of a transnational appeal mechanism as set out in this Bill, we will:

(a)        start a new chapter in facilitating cross-border legal cooperation;

(b)        enhance our offerings as a leading international centre for dispute resolution that is responsive and attuned to evolving commercial needs; and

(c)        strengthen opportunities for the development of jurisprudence beyond our shores.

13.          This innovative initiative will, in time, create opportunities for more cross-border legal work in Singapore, boosting our legal sector.

14.          I will take Honourable Members through key features of the Bill in turn:

(a)        The structure and constitution of the International Committee;

(b)        The jurisdiction of the International Committee and the transnational appeal mechanism;

(c)        Legal representation in the International Committee;

(d)        Enforcement and finality of International Committee judgments or orders; and

(e)        The International Committee’s procedural rules.

Structure and Constitution of the International Committee

15.          First, the International Committee will be a standalone body hearing prescribed civil appeals of an international and commercial nature from prescribed foreign courts.

16.          While there will be strong linkages between the International Committee and the Singapore judiciary, the International Committee will not be a court of Singapore nor will it exercise the judicial power of Singapore.

17.          The International Committee will leverage the close relationship with the SICC. For example:

(a)        Proceedings before the International Committee will take place in Singapore; and

(b)        The International Committee will tap existing Supreme Court resources, such as the SICC’s Registry and its state-of-the-art courtrooms building on our efficient and reliable court infrastructure.

18.          The International Committee’s bench will consist of:

(a)        Permanent members drawn from the Judges of the Supreme Court and International Judges of the SICC; and

(b)        Ad hoc members drawn from the foreign court of appeal origin.

19.          This ensures a deep bench of highly qualified and experienced local and foreign jurists.

20.          As it was with the establishment of the SICC, the International Committee highlights the strong commercial law experience and expertise of Singapore Judges.

21.          Singapore Judges have sat on foreign judicial and quasi-judicial bodies, for example, in Brunei, Fiji, China, and Dubai. This positions our local Judges to broaden their expertise and knowledge of the commercial realities, and practices in other regions of the world.

22.          Such international exposure enhances the expertise for our Judges, that they bring to the International Committee. It also demonstrates the high regard in which Singapore’s judiciary is held internationally.

Jurisdiction of the International Committee

23.       Particulars unique to each collaboration agreement with a foreign jurisdiction, will be set out in regulations made under the framework of the Bill.

24.          The Minister for Law will be empowered to make such regulations concerning:

(a)        the type of cases that can be appealed to the International Committee from a prescribed foreign jurisdiction;

(b)        the powers of the International Committee; and

(c)        ancillary matters, such as the appointment of ad hoc members and the composition of the International Committee panel.

25.          The particulars set out in the regulations will be subject to inter-governmental negotiations.

Legal Representation

26.          To ensure quality legal representation and parity with the SICC, the Bill makes related amendments to the Legal Profession Act 1966:

(a)        Singapore advocates and solicitors can appear before the International Committee; and

(b)        the SICC registration model for foreign lawyers and law experts will be extended to apply to the International Committee. Those who have registered to appear before the SICC are allowed to also appear before the International Committee.

Enforcement and Finality of International Committee Judgments

27.          For enforcement purposes by the courts of Singapore:

(a)        A judgment or order of the International Committee will be treated as a judgment or order of a court of that foreign jurisdiction from which the appeal arose.

(b)        This means the Committee’s judgments will be enforceable in accordance with the mechanisms applicable to that jurisdiction. For example, if that jurisdiction is party to the Convention on Choice of Court Agreements, enforcement in accordance with the Choice of Court Agreements Act 2016 is available.

28.          To ensure finality, a decision of the International Committee may not be appealed to or reviewed by any court in Singapore.

A Framework of Opportunities

29.          The International Committee framework represents a significant step forward in international commercial dispute resolution, featuring:

(a)        A dedicated body to hear appeals from foreign courts;

(b)        Flexible arrangements with different jurisdictions; and

(c)        The development of judicial expertise across borders in a structured, collaborative manner.

30.          Please allow me to share Singapore’s first collaboration arrangement under the Bill’s framework.

31.          On 20 March 2024, Singapore and Bahrain signed a Treaty:

(a)        For Bahrain to establish the Bahrain International Commercial Court (“BICC”); and

(b)        For Singapore to designate a body to hear appeals from the BICC.

32.          The International Committee will be the body to hear these appeals. As mentioned earlier, details of the collaboration, like the type of cases that would be heard on appeal by the International Committee, will be set out in the relevant regulations made by the Minister for Law.

33.          This collaboration has three main features:

(a)        First, Bahrain will establish the BICC to hear international commercial matters in the Kingdom of Bahrain;

(b)        Second, the International Committee will be able to hear appeals from the BICC within the categories stated in the Treaty. Broadly, depending on the nature of the BICC’s jurisdiction over the matter, parties may agree to “opt in” or “opt out” of appeals to the International Committee; and

(c)        The International Committee panel will consist of at least three members, which includes one International Judge and one ad hoc member. Ad hoc members will be Bahraini judges nominated by the Bahrain Supreme Judicial Council.

34.          Our collaboration with Bahrain on the International Committee was entered into because of our shared commitment to advance the framework of law, supporting commerce in an important region. This collaboration can serve as a model for future partnerships with other international partners.

35.          The features of the Bill are designed to allow for adaptability of the mechanism of the International Committee to accommodate future collaborations with such partners.

36.          There are also opportunities for users who will benefit from having their cases heard before leading jurists in the International Committee, thus contributing to the development of jurisprudence in areas unique to the MENA (Middle East and North Africa) region.

37.          We are creating a virtuous cycle as these collaborations further enhance our judiciary’s strong international standing, and open doors to even more innovative partnerships.

38.          We hope that in time, this will:

(a)        Attract more sophisticated offshore legal activity;

(b)        Create new and challenging work for our legal sector;

(c)        Foster the development of specialised expertise in transnational commercial law; and

(d)        Position Singapore as a major contributor to shaping the future of global commercial justice.

39.          Sir, on behalf of the Minister for Law, I beg to move.

Last updated on 12 November 2024