SIAC updates arbitration rules for 2025 to improve efficiency, transparency and certainty

The SIAC has conducted an impressive and comprehensive review of its rules, drawing on its extensive experience in case administration. The updated rules were developed following extensive public consultation with SIAC’s users and stakeholders, such as the SIAC Users Council, arbitration practitioners, arbitrators, business entities, government representatives and academics. The 2025 rules introduce a number of progressive approaches to arbitration, in particular to further enhance efficiency in arbitration proceedings, transparency, and certainty in the timeframe for issuing awards.

The streamlined procedure, for example, is set to enhance efficiency and cost-effectiveness for small-value and straightforward disputes, giving parties an option to tailor their arbitration proceedings to the specific needs of each dispute. Parties can agree to adopt the streamlined procedure at any time before the tribunal is constituted. Alternatively, it automatically applies to disputes valued at under S$1million (approx. US$732,000) prior to the constitution of the tribunal, unless the president of the SIAC Court decides otherwise upon a party's request. A streamlined procedure award must be made within three months from the tribunal's constitution with guidelines to help tribunals complete arbitrations within this timeframe. Additionally, the tribunal’s fees and SIAC administrative fees are capped at 50% of the maximum limits under the schedule of fees, making this a cost-effective option.

Another important feature furthering the efficiency of arbitration proceedings under the new rules is the introduction of a preliminary determination procedure, expanding the powers of the tribunal to facilitate an expeditious resolution of the dispute. The 2025 rules codify an inherent power of the arbitral tribunal to issue a preliminary determination which complements the power of earlier dismissal already existing under the 2016 rules. The tribunal is given absolute discretion to decide whether a preliminary determination or early dismissal should be allowed to proceed. Unlike the arbitral rules of other institutions, the 2025 rules keep the two procedures separate. Parties will have to choose whether to apply for an early determination or early dismissal. It is important to bear in mind that the arbitral tribunal has wide discretion to decide on the procedure for an early determination.

The new rules also incorporate SIAC Gateway, SIAC’s online case management system that was launched in September 2024 to streamline the arbitration process. The new platform not only allows parties to file their request for arbitration and submit other documents electronically, but also allows them to manage their cases in real time and enables online payment.

As to transparency, the 2025 rules notably include a new provision regarding third-party funding. This requires a party to disclose the existence of any third-party funding agreement and the identity of the third-party funder, which is in line with widely adopted best practices. The tribunal may order disclosure of details of the third-party funder's interest in the outcome of the proceedings and whether the third-party funder has committed to undertake adverse costs liability. The requirements on disclosure and related powers of the tribunal are fairly extensive. Under the 2025 rules, the tribunal is given wide discretion in cost apportionment on account of a third-party funding arrangement being in place, and can take appropriate measures, including issuing an order or award for sanctions, damages, or costs, if a party does not comply with any obligations or orders for disclosure.

Further significant developments in the 2025 rules relate to the process and timelines for emergency relief and the arbitral award. As to emergency relief, the emergency arbitrator procedure has been enhanced to include a procedure for an ‘ex parte’ preliminary protective order application which provides that the emergency arbitrator is required to determine the request for protective order within 24 hours of their appointment. This gives parties access to immediate relief directly within the arbitration framework, an especially useful option in the context of bond calls and similar high-stakes and time-sensitive circumstances where speed and efficiency are paramount.

As for the arbitral award, under the 2016 rules the timeline for submission of the draft award was tied to the tribunal declaring the proceedings closed. This allowed for considerable flexibility and relatively little certainty as to timing. The 2025 rules make a key change in this regard. The tribunal is now required to submit the draft award to the secretariat within 90 days from the date of the last directed oral or written submission, unless the registrar determines otherwise. While this may seem an ambitious timeline in fixed form, international tribunals increasingly strive for an expedient award drafting process within similar timeframes and the fixed nature of the timeline may assist in planning. Given the constant commercial and financial pressures on them to resolve their dispute quickly and efficiently, and get to an award, parties will no doubt appreciate the greater certainty around timing as well as the improved ability to plan and manage expectations effectively.

The 2025 rules align with global trends towards efficiency, transparency and predictability, as well as digitalisation. The overall impact of these changes is likely to be positive. Businesses and users alike can look forward to a more streamlined, fair, and accessible arbitration process, reinforcing SIAC's position as a leading institution in the field of international arbitration.

Co-written by Johanne Brocas of Pinsent Masons