OPENING REMARKS

INDRANEE RAJAH S.C.

SENIOR MINISTER OF STATE

MINISTY OF LAW AND MINSTRY OF FINANCE

SIGNING OF THE HOST COUNTRY AGREEMENT BETWEEN

SINGAPORE AND THE PERMANENT COURT OF ARBITRATION

25 JULY 2017, 1145AM AT SUPREME COURT

His Excellency Hugo Siblesz Secretary General, Permanent Court of Arbitration

Sundaresh Menon, the Chief Justice of

Lucien Wong, the Attorney-General of Singapore

Distinguished guests, ladies and gentlemen

Introduction

1. I am delighted to join all of you today at the signing of the Host Country

Agreement between Singapore and the Permanent Court of

Arbitration (PCA) for the setting up of a PCA office in Singapore. 2. First, let me extend a very warm welcome to our overseas guests who

have travelled from afar to be with us today. I do hope you enjoy your

stay in Singapore and find the time to explore our country.

3. I am also heartened that so many distinguished members of

Singapore’s dispute resolution community who have taken the time to

honour us with your presence. Your attendance is testament to the

significance of today’s event and the deep partnership the Singapore

dispute resolution community has with the PCA.

4. Let me just say a few words about what today’s signing means for

Singapore’s relationship with the PCA and our efforts to take dispute

resolution to a new level.

Singapore’s relationship with the PCA

5. Singapore has a longstanding warm relationship with the PCA. This

relationship started 24 years ago, in 1993, when Singapore became

a Contracting Party to the PCA’s founding Convention, the 1907

Convention for the Pacific Settlement of International disputes.

6. As a strong proponent of a peaceful and rules-based international

legal order, it is no surprise at all that Singapore supports the PCA

and what it does in helping to resolve disputes between states, state

entities, international organisations and private parties. Singapore has nominated representatives to the PCA’s panel of independent

arbitrators, highly distinguished individuals which include Singapore’s

Chief Justice , former Chief Justice Chan Sek

Keong, Ambassador-at-Large and Deputy Attorney-

General Lionel Yee.

7. There were also two instances whereby Singapore was itself a “client”

of PCA’s dispute resolution services:

a. In 2003, Singapore’s dispute with Malaysia concerning

Singapore’s land reclamation activities in the Straits of Johor was

submitted for arbitration under the compulsory dispute

settlement procedures in the United Nations Convention on the

Law of the Sea (UNCLOS). The PCA acted as registry for the

arbitral tribunal.

b. In 2012, Singapore and Malaysia agreed to submit the dispute

concerning the development charges on former Malayan railway

land to final and binding arbitration, again with the PCA acting as

registry for the arbitral tribunal.

8. These two examples underscore Singapore’s belief that disputes,

including those between States, can be resolved amicably, in

accordance with international law. They also demonstrate our trust and confidence in the role PCA plays in helping to administer a just

and amicable resolution.

9. In 2007, Singapore signed a facility agreement with the PCA in

support of its work. The facility agreement allows the PCA to conduct

dispute resolution hearings in Singapore on an ad-hoc basis, without

the need for the PCA to set up a permanent physical presence in

Singapore. This arrangement allowed the PCA the kind of support it

needed at a time when the number of PCA cases heard in Singapore

was relatively low.

10. Now, on the 10-year anniversary of the facility agreement, Singapore

and the PCA have decided to deepen this partnership, by entering into

an agreement for Singapore to host a staffed office of the PCA in

Singapore. The signing of the host country agreement signifies a step-

up in PCA-Singapore relations, one deeply rooted in a shared belief

in the rule of law and a shared commitment to advance this through

the provision of quality dispute resolution services.

Taking Dispute Resolution to the Next Level

11. Singapore is today one of the top five most preferred seats of

arbitration in the world, alongside London, Paris, Geneva and Hong

Kong. We have done well, but we are certainly not resting on our laurels. We think we can do more and do better, and we believe there

is now a window of opportunity for us to take dispute resolution to the

next level.

12. First, the economic centre of gravity of the world is shifting to Asia. As

this happens, legal activities will follow. There will be a lag in this shift,

because of habits and established practices. But it is inevitable. We

will see that Asia’s magnetic pull on businesses has a knock-on effect

on legal activities also.

a. Take infrastructure as an example. Asia has an urgent need for

additional infrastructure investments totalling US$20 trillion

between now and 2030, because of its rapid urbanisation,

development, and population growth. Infrastructure projects

need financing and project structuring. They also need legal

services, including dispute resolution services, to resolve

disputes arising from delays and variations which are common.

b. And as we see this shift to Asia, we can see it reflected in the

numbers already. Between 2014 and 2019, global legal services

are projected to grow at 3.3% a year. But if we look just at the

Asia-Pacific region for the same period, the growth rate is much

higher at 5.5%, a 2.2 percentage point difference from the global

average. This 2.2 percentage point difference is compounded every year, so the gap widens with each passing year. While we

will still find opportunities elsewhere in the world, there are just a

lot more in Asia. Any major player planning long-term cannot

afford to ignore Asia.

13. Second, Singapore is well poised to serve this growing demand in

Asia. We have a trusted legal system that not only delivers high quality

jurisprudence, but one that is neutral and stable.

a. This is why businesses who plan long-term choose Singapore as

the seat of arbitration in their contracts, even those that have no

connection whatsoever with Singapore. This is because they

know that if and when disputes arise, be it 5, 10 or 15 years later,

Singapore will still be Singapore: trusted, consistent and reliable

in its approach, delivering the same high-quality jurisprudence

as it does now, if not better.

b. And more businesses will come to appreciate this trust, neutrality

and stability that Singapore offers. These qualities will command

an even higher premium in an increasingly uncertain world,

where the neutrality and stability of well-established legal

systems can no longer be taken for granted. What Singapore offers is intrinsically linked to our system of governance. It cannot

be created overnight, but also cannot be easily replicated.

14. Third, Singapore has a government that is focused and determined in

helping its dispute resolution sector seize opportunities in Asia. We

are fortunate that we are able to work closely with its Courts and the

legal profession to do so. It is not a case of every man for themselves,

each lawyer, law firm and institution on his own. We give them our full

support. In fact, over the last few weeks and over the next few months,

I will be visiting all the major law firms as well as speak to the medium

and small size firms to talk about plans for the Future Economy and

the growth sectors for the legal profession.

15. Our efforts to support the dispute resolution sector are not ad-hoc, but

concerted, coordinated, and sustained over many years.

a. We work together to proactively review legislation to make sure

that our laws stay up-to-date, and support businesses. For

example, we recently amended legislation to allow third party

funding in relation to international commercial arbitration. We

also introduced a new legislative framework to strengthen the

enforceability of mediated settlements.

b. We build and make long-term investments in institutions to serve

the needs of businesses and the dispute resolution community. We now offer a complete suite of dispute resolution services,

arbitration through the Singapore International Arbitration Centre

(SIAC), mediation through the Singapore International Mediation

Centre (SIMC) and litigation, through the Singapore International

Commercial Court (SICC). In 2010, we set up Maxwell

Chambers, the world’s first integrated dispute resolution

complex. We are now making further investments to expand

Maxwell Chambers to meet future demand. Just last month, I

attended the Ground-breaking ceremony, and I am happy to say

that the new building, Maxwell Chambers Suites, is already 65%

booked, even before construction begins.

16. Fourth, Singapore is open and inclusive in our approach. We seek to

be a truly international hub from which States and businesses can

access a full spectrum of dispute resolution providers and services.

For service providers, we seek to be their base in Asia from which

they can access and capture its many opportunities. Again just last

month, the International Court of Arbitration of the International

Chamber of Commerce announced that it will set up a case

management office in Singapore. The ICC Court also signed a

Memorandum of Understanding with the Singapore Ministry of Law to

work together to develop and promote Singapore as a seat and venue for arbitration in Asia through advancing thought leadership,

developing manpower talent and arbitration services, and undertaking

joint marketing.

17. The setting up of the PCA office in Singapore, its first staffed office in

Asia, will further augment Singapore’s position as an international hub

for dispute resolution, particularly in the new area of investment

dispute resolution. Many treaties and investment agreements

designate the PCA as the appointing authority of arbitrators or charge

the PCA with providing registry services or hearing facilities for PCA-

administered disputes. With the support of the PCA office in

Singapore and Singapore’s world class hearing facilities at the

Maxwell Chambers, Singapore will be better placed to host the

arbitration proceedings in respect of any dispute arising out of such

agreements.

18. In fact, we are already seeing a growing number of PCA cases held

in Singapore. In 2017, at least seven PCA cases have been heard or

will be heard in Singapore. This is almost double the number of four

that were heard in Singapore in 2015. This growing number is

testament to the expertise Singapore already offers. With the setting

up of the new office, we hope to be able to better serve the dispute

resolution needs of States and businesses in Asia and to meet growing demand in coming years. This will create more opportunities

for Singapore lawyers and law firms.

Conclusion

19. In conclusion, I would say a few words to the many distinguished

practitioners who have joined us today.

20. It is encouraging to note that Singapore-based legal practitioners are

in various capacities involved in high-level disputes handled by the

PCA. Singapore-based practitioners have acted or are acting as

arbitrator in 31 PCA cases, while Singapore-based practitioners

currently act as counsel in 9 pending PCA cases. There is certainly

room for more to participate. The Ministry of Law is looking into how

we can grow work in the area of investment arbitration and we

welcome your ideas and suggestions.

21. Ultimately, the ability of the PCA office here to realise its full potential

depends not only on the PCA’s efforts and the Singapore

Government’s support, but also on the awareness and willingness of

litigants to utilise the services offered by the PCA. We hope you will

all share the good news of the opening of the PCA office in Singapore

with your clients and business counterparts. 22. This latest milestone is one of many others to come in Singapore’s

continued growth as an international dispute resolution hub. We look

forward to partnering with all of you as ambassadors of Singapore’s

dispute resolution community.

23. Thank you all for your continued support.

. . . . .