A record number of new arbitration cases have been filed in Singapore, indicating that efforts are underway to become a top city-state dispute resolution center.
International corporations will take this step in filing agreements in Asia Excluding Hong Kong from the legal treaty Concerns that the growing influence of thought could undermine the rule of law in the region.
Hong Kong’s case burden has remained flat for the most part over the past five years, but Singapore’s growing profile as an arbitration center could increase competition between rival business centers.
In 2020, the number of new cases handled by the Singapore International Arbitration Center doubled to 1,060 from the previous year. The 60 parties to the judiciary, including Hong Kong, Japan and Switzerland, arbitrated $ 8.5bn in disputes. India, the United States and China have filed the most cases as foreign users.
“Through careful planning and hard work, we have reached a new milestone in 2020,” SIAC chief executive Lim Sheok Hui said in a statement.
The biggest jump came from U.S. parties, with the total number of cases rising by 7338 percent from 654 in 2012, a trend that experts say was partly due to Singapore’s neutrality. Excitement Between Washington and Beijing.
“Walking a fine line in the middle of Singapore [the US and China]”Being friendly with both, it is seen as a relatively neutral ground for both sides. People don’t want to go to New York or China, but there’s no problem for either side to go to Singapore,” said Jonathan Yuen, an expert on disputes between Rajah and Tan’s lawyers.
Lijun Chui, a partner at the international law firm Bird & Bird, said an increase in the number of parties activating conflict resolution clauses during an epidemic contributed to a higher number of cases worldwide. However, Singapore has established itself as a neutral hub for the region and global business.
The city-state has developed as a center for arbitration over the years, creating institutions and passing laws to facilitate dispute resolution.
However, Singapore has recently stepped up its efforts to present itself as an alternative financial center to Hong Kong. This includes introductions Corporate structure Designed to solicit funds from regions such as Hong Kong, the Cayman Islands and Luxembourg.
The Hong Kong International Arbitration Center was involved in 463 new lawsuits in 2020 over 8. 8.8 billion overs from Hong Kong, China, the British Virgin Islands and the most regular user source in the United States last year.
Hong Kong has recently launched an aggressive marketing campaign to protect the region’s reputation as a global legal and financial center in the face of negative attention. Court and Judiciary.
“Why Hong Kong is not irreplaceable,” Hong Kong Justice Secretary Teresa Cheng held a conference for lawyers in February.
Meanwhile, Eddie Yu, chief executive of the Hong Kong Monetary Authority, said: “The turmoil we have faced has seen some challenges for Hong Kong’s future, but I think another storm has successfully strengthened Hong Kong’s unique value. . . The legal profession has a very important role to play [in that]”
The head of a U.S. law firm in the region said: “There has been unjustified criticism of Hong Kong’s weak rule of law and the independence of the judiciary. The government is taking major legal steps to prevent this. ”