Alternative Dispute Resolution in Singapore.

In Singapore, alternative dispute resolution (ADR) began in the 1980s. This happened when the government envisioned the nation as a major dispute resolution centre due to the strategically location .Besides that, the government of Singapore had its mission of developing Singapore into a one-stop commercial hub as well that contributed to the idea of growth of ADR in the country .In addition, another goal of ADR in Singapore is to inhibit Singapore from becoming a litigious culture. Alternative dispute resolution (ADR) is growing rapidly in importance in Singapore as a means of dispute resolution for matters ranging from domestic and social conflicts to large-scale cross-border legal disputes.1 The ADR movement in Singapore is closely associated to the changes and developments made in the court system. Due to the change made to the civil procedure, the waiting period for cases to be heard in courts and backlog of cases has been reduced in the Singapore courts in the recent years. The main approaches of ADR that is practiced in Singapore are arbitration, mediation and negotiation. In a 2006 report published by the International Chamber of Commerce (the ICC) International Court of Arbitration (the ICA), Singapore ranked as the top city in Asia for arbitration and one of the six most popular arbitration venues alongside Paris, London, Geneva, Zurich and New York.2. Arbitration is a private, adversarial process in which the disputing parties choose a neutral person to hear evidence and legal argument and to render a decision. Two separate legal regimes govern the conduct of arbitration in Singapore. Where the sites (place/seat) of arbitration is Singapore, the Arbitration Act (Cap. 10) (Revised Edition 2002) (Arbitration Act) or the International Arbitration Act (Cap. 143A) (IAA) will regulate the conduct of the arbitral proceedings.3Moreover, there are five primary sources of arbitration services in Singapore, which are The Singapore International

1. www.singaporelaw.sg, 20.7.2012 2. http://www.sal.org.sg 20.7.2012

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Arbitration Centre, The Singapore Institute of Arbitrators, Industry-Specific Providers, Private Service Providers and Statute-based Arbitration. Apart from arbitration, Singapore also practices mediation as a method of ADR. Mediation is profoundly dissimilar from arbitration. "Mediation is a flexible process conducted confidentially in which a neutral person actively assists parties in working towards a negotiated agreement of a dispute or difference, with the parties in ultimate control of the decision to settle and the terms of resolution."4. Mediation practices in Singapore at present can be separated into three wide classifications which are court connected mediation, private mediation and mediation in tribunal, government department and agencies. Mediation through the establishment of the Court Mediation Centre which is now known as the Primary Dispute Resolution Centre was introduced by The Subordinate Courts of Singapore in 1994.Mediation services that are offered by other professional and trade bodies specialising in ADR and the Singapore Mediation Centre (SMC) is called the private mediation. For example, the Association of Banks in Singapore which has a consumer mediation unit which handles disputes between clients of banks and their members. Mediation provided by tribunal, government department and agencies includes the Community Mediation Centres (CMC) whereby it is a service that is accessible to all Singaporeans. Singapore also uses another method of ADR which is negotiation. Negotiation is an interchange between two or more parties in an attempt to reach a compromise. Negotiation is at the core of most Alternative Dispute Resolution (ADR) processes.5.This is to ensure a good relationship between the two disputing party is sustained.

1. www.singaporelaw.sg, 20.7.2012 2. http://www.sal.org.sg 20.7.2012

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There are many benefits of ADR in Singapore. One of the largest reasons parties choose to resolve their disputes outside of the courts is cost 6 Although, the parties must pay for the costs of the mediator, conciliator or arbitrators, ADR is generally cheaper and faster than litigation. Besides that, ADR is less time consuming compared to court processes where the waiting period is long, ADR can be scheduled by both parties as soon as they wish. In addition, unlike disputes that are resolved in the court, ADR offers confidentiality in that matter. ADR processes are held in private which means that the agreements or the evidence or the award are not available to the general public. Moreover, ADR is more flexible compared to the court system which is controlled by the judge. This is because the parties have control in certain aspects such as the length of the process, the method and the process as well as the panellist. Unlike the court system, the parties even have control in the outcome of the case. Even though ADR contains many positive attributes, it also contains a couple of downsides. One of the drawbacks of ADR practices in Singapore is the existence of unequal bargaining power. For instance, in the employment and divorce cases, one side would overlook the other and hence the court process would be a better option compared to ADR. Furthermore, ADR is not suitable for disputes that involve crucial legal points, as mediators or arbitrators are doubtful to have the similar level of legal expertise and specialisation as compared to a qualified judge .Besides, if resolving the parties dispute using ADR failed, the court may still have to intervene to resolve the dispute. Thus, the cost may add up and delay the time compared to taking the matter straight to the court.

1. www.singaporelaw.sg, 20.7.2012 2. http://www.sal.org.sg 20.7.2012

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