We cover: Asian International Arbitration Centre's institutional reform, HKIAC's updated Administered Arbitration Rules and HKIAC's 2023 statistics, Singapore and Bahrain's treaty establishing new Bahrain International Commercial Court and Hong Kong's action plan promoting its legal services within Greater Bay area.
Singapore courts are kept busy on topics like jurisdiction and transnational issue estoppel and Hong Kong courts address (inter alia) conflicting dispute resolution clauses and a tribunal's failure to address an issue.
LEGAL DEVELOPMENTS
ASIAN INTERNATIONAL ARBITRATION CENTRE TO UNDERGO INSTITUTIONAL REFORM
February 20, 2024
In February 2024, the Asian International Arbitration Centre ("AIAC") announced it will undergo institutional reform as a result of the formalization of the Supplementary Agreement to the Host Country Agreement between the Government of Malaysia and the Asian-African Legal Consultative Organization ("AALCO"). The AALCO is an inter-governmental organisation comprising forty-seven governments of the Asian and African region. The AIAC was inaugurated in 1978 as part of a host country agreement between Malaysia and AALCO.
The restructuring initiative will be carried out in phases and will involve the introduction of the AIAC Court of Arbitration in accordance with relevant amendments to the prevailing legislation. The AIAC also intends to appoint a Chief Executive Officer, who will be in charge of managing day-to-day operations and administration of the AIAC.
SINGAPORE INTERNATIONAL ARBITRATION CENTRE ("SIAC") SIGNS MEMORANDUM OF UNDERSTANDING WITH BAHRAIN CHAMBER FOR DISPUTE RESOLUTION
February 21, 2024
The Singapore International Arbitration Centre ("SIAC") has signed a Memorandum of Understanding ("MOU") with the Bahrain Chamber for Dispute Resolution ("BCDR") to encourage the resolution of international disputes via arbitration. This partnership will see the SIAC and the BCDR jointly host in-person, hybrid, or virtual conferences, seminars, and workshops focused on international arbitration in both Singapore and Bahrain.
The SIAC and the BCDR will also invite key figures from their local arbitration communities to participate in events held by the SIAC in Bahrain or by the BCDR in Singapore.
The MOU outlines that the BCDR will offer its current hearing facilities in Bahrain at preferential rates for SIAC arbitration hearings, and reciprocally, the SIAC will facilitate the use of hearing facilities in Maxwell Chambers in Singapore at preferential rates for BCDR arbitration hearings.
(This entry was produced with the help of generative AI.)
HKIAC RELEASES 2023 STATISTICS WHICH SHOWCASE HONG KONG AS PRIME INTERNATIONAL ARBITRATION HUB
March 6, 2024
The Hong Kong International Arbitration Centre ("HKIAC") has released its 2023 statistics, which reaffirms Hong Kong's position as one of the prime international arbitration hubs.
While the total number of matters submitted to the HKIAC (500) is similar to that in 2022, 281 filings were made, which is the third highest figure since 2017. A total of 771 parties and 382 contracts were involved, and a record-breaking HK$92.8 billion (approximately US$12.5 billion) were involved in the disputes handled by the HKIAC. The average amount of each dispute was HKD 467.6 million (approximately USD 60.1 million), another new record.
The HKIAC continues to be one of the most widely used forums for international dispute, with around three quarters of arbitrations handled and almost 90% of arbitration administered involving at least one non-Hong Kong party from countries such as Singapore, South Korea, Japan, the British Virgin Islands, Cayman Islands, and the United States, and involving 14 different jurisdictions.
The statistics also reveal progress in HKIAC's attempt to improve the diversity of arbitration in Hong Kong. More than one-third of the arbitrators appointed were female, a figure higher than that in 2021 and 2022. More than one-third of the arbitrators were also previously not appointed by the HKIAC in the last three years.
The statistics also reflect the effectiveness of the Hong Kong – Mainland China arrangement on interim measures, whereby the parties to arbitral proceedings in Hong Kong may apply for interim measures under the laws of the Mainland China to preserve assets pending the outcome of the arbitration. In 2023, the HKIAC has processed 19 applications to 13 different Mainland Chinese courts, and the Mainland Chinese courts had issued orders to preserve RMB$544 million (approximately USD 76.1 million) worth of assets.
SINGAPORE AND INDIA SIGN MEMORANDUM OF UNDERSTANDING
March 14, 2024
Singapore's Minister for Culture, Community and Youth and India's Minister for Law and Justice signed a Memorandum of Understanding ("MOU") to deepen cooperation on legal and dispute resolution services between the two countries.
Under the MOU, Singapore's Ministry of Law and India's Ministry of Law and Justice will work together to promote the exchange of people, expertise and information, as well as to organize events and courses on international commercial dispute resolution, the promotion of alternative dispute resolution mechanisms, and other areas of mutual interests.
A Joint Consultative Committee, co-chaired at the Ministerial or Secretary level, will also be set up, and will meet regularly to make and implement specific proposals under the MOU.
SINGAPORE AND BAHRAIN TO ESTABLISH NEW BAHRAIN INTERNATIONAL COMMERCIAL COURT
March 20, 2024
The Government of Singapore and the Government of the Kingdom of Bahrain signed a bilateral Treaty to establish a new Bahrain International Commercial Court ("BICC") in Bahrain and a designated body in Singapore to hear appeals from the BICC. The BICC will be set up through joint collaborative efforts between the Singapore International Commercial Court and the Supreme Judicial Council of the Kingdom of Bahrain.
This collaboration follows the signing of the Memorandum of Understanding on Cooperation and Memorandum of Guidance as to the Enforcement of Money Judgments by the Singapore and Bahrain judiciaries in May 2023. The establishment of the BICC is a component of Bahrain's plans to build an international commercial dispute resolution hub and build on its dispute resolution mechanisms.
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