The Hindu Business Line : `Singapore right place for neutral disputes resolution'

Hyderabad April 13 With the growing image as a global business hub, Singapore is now trying to tap the business potential in neutral arbitrations especially from Asian companies, including India.

Along with the globalisation, there has been growth in global business partnerships, which invariably lead to an increase in commercial disputes between the companies across various geographies. As the Singapore law is widely accepted as a neutral legal system, the city-state can be a venue for dispute resolution, the Minister for Higher Education and Second Minister for Finance, Mr Tharman Shanumugaratnam, told Business Line.

Mr Shanmugaratnam was here recently to lead a business delegation for improving the bilateral economic ties between Singapore and India.

Neutral venue

For India, the appeal of Singapore as a neutral arbitration centre would be more, feel experts from Singapore. "Many reputed Indian companies in various sectors including IT are present in Singapore and see it as a gateway to other parts of the world," Ms Teh Hwee Hwee, Assistant Chief Executive, Singapore Academy of Law (SAL), said.

SAL is the umbrella membership body of legal fraternity in Singapore whose president is the Chief Justice of Singapore. It has over 7,000 professional members.

"We welcome all Indian corporations and lawyers who require a neutral venue for dispute resolution," she said.

In sectors like pharma where corporate disputes have become order of the day, this may be of help. "The developments in Singapore law accommodate global business trends and commercial practices. Many corporates from Europe and Asia are coming to us," Ms Hwee said.

Some Indian companies have started taking legal assistance for neutral arbitration of disputes, claimed the SAL official. "Apart from corporate houses, legal houses and lawyers' syndicates could forge tie ups with their counterparts in Singapore with the aid of SAL," she added.

According to Mr Pradeep K. Menon, Executive Director and CEO, Singapore Indian Chambers of Commerce and Industry, the interest of Indian firms in Singapore law is growing. "There are good number of Indian companies who have preferred Singapore law for arbitrations in disputes arising out of their tie ups with global firms," he said.

Institutional support

Apart from corporate law houses, institutional support is also being given. The Singapore International Arbitration Centre and Singapore Mediation Centres provide conflict management solutions on a non-profit basis.

As Singapore is attracting the attention of Indian students for pursuing legal studies, it may now be the turn of corporates to look to Singapore for arbitration needs.

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