Arbitration is increasingly seen as a preferred method of dispute resolution in Singapore, offering privacy, flexibility, and enforceability that court litigation may not always provide. However, many individuals and businesses remain unclear about which disputes are actually eligible for arbitration.
Understanding the types of cases that can be resolved through arbitration helps businesses decide if this route is right for their situation. In this article, we explore the types of disputes commonly handled through arbitration in Singapore, the legal boundaries, and the practical considerations that can guide your decision.
Commercial and Contractual Disputes
Most commercial disputes are arbitrable under Singapore law. These typically involve breach of contract, non-payment for services, supply chain issues, and disagreements over contract interpretation. Since these cases often involve sensitive business matters, arbitration is preferred for its confidentiality and ability to avoid public court proceedings.
Construction and Infrastructure Disputes
Construction arbitration is one of the most active areas in Singapore. Disputes may arise over project delays, cost overruns, workmanship defects, or disagreements between developers and contractors. Arbitration allows for expert panels to hear such cases, which is particularly useful in highly technical matters involving engineering or architectural issues.
Shareholder and Partnership Conflicts
Shareholder disputes involving exit clauses, dividend entitlements, or claims of mismanagement can be effectively managed through arbitration. These disputes are often complex and involve detailed agreements. Arbitration allows the parties to choose arbitrators with specific legal and financial expertise.
Intellectual Property and Licensing Disputes
In an increasingly global business environment, disputes over intellectual property ownership, licensing rights, and royalties often cross borders. Many of these can be resolved through arbitration, especially when the contracts include cross-border IP elements. Singapore’s strong enforcement framework gives parties confidence that awards will be recognised internationally.
Key Differences in Scope and Framework
Singapore has two main legislative frameworks for arbitration. The Arbitration Act governs domestic cases, while the International Arbitration Act applies to disputes with an international element. Both frameworks promote efficiency, neutrality, and minimal court intervention.
Institutions and Rules Used
The Singapore International Arbitration Centre (SIAC) is one of the most respected arbitral institutions globally. SIAC handles both domestic and international cases, offering parties robust rules and administrative support. Whether your case is local or international, working with experienced arbitration services ensures that you benefit from the right procedures and protections.
While many civil disputes are suitable for arbitration, some are explicitly excluded under Singapore law. These include:
● Criminal matters such as fraud or offences under penal statutes
● Family law issues like divorce, maintenance, or child custody
● Insolvency and winding-up proceedings, which involve public interest and regulatory oversight
Disputes involving statutory claims or questions of public policy may also be deemed non-arbitrable. It is important to seek legal advice to confirm whether a dispute falls within these excluded categories.
The simplest way to determine if your dispute is eligible for arbitration is to check whether there is an arbitration clause in your contract. These clauses usually specify the forum, governing law, and arbitration rules to apply in the event of a dispute.
If your contract includes a valid clause, both parties are generally bound to follow through with arbitration instead of turning to the courts. If no clause exists, both parties can still agree to arbitrate the matter by entering into a post-dispute agreement.
Drafting enforceable arbitration clauses requires careful wording to avoid ambiguity. If you are unsure about your agreement or want to evaluate your dispute resolution options, you can speak with a legal advisor to ensure your strategy aligns with current frameworks.
Arbitration provides several advantages over litigation, especially for commercial disputes. These include:
● Confidentiality, which keeps your business matters out of the public domain
● Neutrality, especially important in cross-border disputes where parties want a neutral venue
● Expert Decision-Makers, where arbitrators are chosen for their knowledge of the subject matter
● Enforceability, as Singapore awards are recognised in over 160 jurisdictions under the New York Convention Customisation, since parties can tailor procedures, timelines, and even the choice of arbitrator
These features make arbitration an attractive solution for businesses seeking fast and effective dispute resolution with minimal disruption to their operations.
Arbitration in Singapore is a powerful tool for resolving a wide range of commercial and civil disputes. From construction claims to shareholder conflicts, it offers a private, enforceable, and expert-driven alternative to court litigation.
Not every dispute is suitable for arbitration, but for those that are, it offers significant benefits. Understanding which cases qualify, checking for arbitration clauses, and consulting legal counsel are essential first steps.
If you are exploring arbitration as an option for your business, take the time to review your contracts and assess your strategy. The right advice can help you avoid costly litigation and secure a resolution that protects your interests effectively.
1. What types of disputes are commonly resolved through arbitration in Singapore?
In Singapore, arbitration is frequently used to resolve commercial and contractual disputes, including issues related to construction, infrastructure, shareholder disagreements, and intellectual property licensing. These disputes often benefit from arbitration's confidentiality, flexibility, and the ability to select arbitrators with specific expertise.
2. Are there disputes that cannot be resolved through arbitration in Singapore?
Yes, certain disputes are considered non-arbitrable under Singapore law. These include criminal matters, family law issues such as divorce and child custody, and insolvency proceedings. Such matters are typically handled by the courts due to their public interest nature.
3. How can I determine if my contract includes an arbitration clause?
To check for an arbitration clause, review your contract for any section that specifies dispute resolution methods. An arbitration clause will typically state that any disputes arising from the contract will be settled through arbitration, possibly mentioning the governing rules or institution, such as the Singapore International Arbitration Centre (SIAC).
4. What are the benefits of choosing arbitration over litigation in Singapore?
Arbitration offers several advantages, including confidentiality, flexibility in procedure, and the ability to select arbitrators with relevant expertise. Additionally, arbitration awards are generally easier to enforce internationally compared to court judgments, making it a preferred choice for cross-border disputes.
5. Is arbitration suitable for both domestic and international disputes in Singapore?
Yes, arbitration in Singapore is appropriate for both domestic and international disputes. The Arbitration Act governs domestic arbitration, while the International Arbitration Act pertains to international cases. Singapore's legal framework enhances the effectiveness of arbitration in both settings.
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