After extensive public consultation on the draft 7th edition of the SIAC Rules published in 2023, the official 7th edition came into force on 1 January 2025. The revised rules aim to enhance arbitral processes by ensuring fairness, efficiency and the overall enforceability of awards. Significant changes introduced by the 2025 Rules include:
Expedited Procedure (Rule 14, Schedule 3)
The Expedited Procedure under the 2016 Rules allowed applications for disputes not exceeding S$6 million (approximately US$4,684,000) or in cases of “exceptional urgency”. The tribunal decided whether a hearing was required for witness examination or oral arguments.
Under the 2025 Rules, the scope for the expedited procedure has expanded. Applications can be made for disputes not exceeding S$10 million (approximately US$7,806,800), but above S$1 million (approximately US$780,700), or where circumstances justify using the Expedited Procedure. Additionally, the new rules mandate a hearing if requested by any party or if the tribunal deems it necessary.
Emergency Interim Relief and Protective Preliminary Orders (Rule 12, Schedule 1)
Previously, applications for emergency interim relief had to be filed alongside the Notice of Arbitration. The 2025 Rules now allow for such applications to be made before the filing of the Notice. If the Notice is not filed within seven days of the application, it will be considered withdrawn unless an extension is granted. Furthermore, parties may apply for a protective preliminary order along with their emergency interim relief request. This order directs a party to refrain from actions which could undermine the effectiveness of the emergency measures.
Timeframe for Issuing Awards (now Rule 53)
Under the 2016 Rules, the tribunal was required to submit a draft award within 45 days of declaring the proceedings “closed”. The 2025 Rules introduce a more structured approach, requiring the draft award to be submitted within 90 days of the last oral or written submission.
Streamlined Procedure (Rule 13, Schedule 2)
The new Streamlined Procedure is designed for non-complex, low-value disputes (up to S$1 million; approximately US$780,700) . This procedure mandates for an award to be issued within three months of the tribunal’s formation and there are caps on tribunal and SIAC administrative fees. Importantly, the tribunal’s fees and SIAC’s administrative fees are set at 50% of the maximum fee limits, ensuring cost-effectiveness for small disputes.
Preliminary Determination (Rule 46)
Rule 46 allows the tribunal to make final and binding determinations on specific issues early in the arbitration process. Parties can apply for a preliminary determination if both agree, or if the applicant can show resolving key issues early will save time and costs or expedite the resolution of the dispute.
Disclosure of Third-Party Funding (Rule 38)
The 2025 Rules require parties to disclose third-party funding agreements, including the identity of the funder. This measure aims to ensure transparency and uphold the impartiality of the arbitrators and it allows tribunals to take these agreements into account when apportioning costs. Parties are prohibited from entering into third-party funding agreements that may create conflicts of interest with any member of the tribunal after its constitution.
Coordinated Proceedings (Rule 17)
In multi-party and multi-contract disputes, the new 2025 Rules introduce a mechanism for coordinating multiple arbitrations involving common issues. This procedure allows parties to request arbitrations be conducted concurrently or sequentially, reducing the risk of conflicting outcomes and avoiding duplication of costs.
Promotion of Amicable Dispute Resolution (Rules 32.4 and 50.2)
The updated rules encourage parties to consider amicable dispute resolution, such as mediation, at the outset of the arbitration process. Tribunals are empowered to suggest these methods during case management conferences and can suspend proceedings to facilitate alternative dispute resolution where both parties agree.
Key Takeaways
The 2025 Rules reflect a significant overhaul aimed at improving the efficiency and flexibility of arbitral processes. Key changes, such as the introduction of the Streamlined Procedure, the enhanced expedited process and greater emphasis on transparency with third-party funding, demonstrate a forward-thinking and contemporary approach to arbitration.
These updates, combined with increased focus on information security and sustainability, make the 2025 Rules highly adaptable to present challenges and needs in the arbitral community.
Other notable changes include the integration of SIAC Gateway, a digital cloud-based case management platform and provisions for tribunal secretaries, all designed to streamline case management and improve procedural efficiency.
The 2025 Rules strike a balance between reducing delays and costs while enhancing transparency and ensuring fairness and impartiality of the arbitration process, securing SIAC’s position as a leader in global arbitration.