Opening Address by Second Minister for Law, Ms Indranee Rajah S.C
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EMBARGOED TILL DELIVERY. PLEASE CHECK AGAINST DELIVERY. OPENING ADDRESS BY SECOND MINISTER FOR LAW, MS INDRANEE RAJAH S.C. AT THE SIAC CONGRESS 2018 GALA DINNER THURSDAY, 17 MAY 2018 Mr Davinder Singh, S.C. Chairman of SIAC Ms Lim Seok Hui CEO of SIAC Distinguished guests, ladies and gentlemen I. Introduction 1. This is the 3rd edition of SIAC’s flagship Congress. It is a timely forum. 2. SIAC continues to break caseload records, with a historical high of 452 last year. 3. Just one week ago, the 2018 International Arbitration Survey results were released. Singapore and SIAC have moved up the ranks again: a. SIAC is now the 3rd most preferred arbitral institution in the world; and b. Singapore is now 3rd most preferred seat of arbitration globally.1 c. This also means that SIAC and Singapore are now the most preferred institution and seat in Asia. 4. This is excellent news. I am very pleased for Singapore, and congratulations, SIAC. 5. Since we are here to discuss the future of international arbitration, allow me to consider two questions. 1 Queen Mary University of London and White & Case, 2018 International Arbitration Survey: The Evolution of International Arbitration, May 2018. 1 EMBARGOED TILL DELIVERY. PLEASE CHECK AGAINST DELIVERY. a. What role can SIAC and Singapore play in the economy of the future? And – b. Will arbitration remain the most preferred mode of resolving disputes? II. The Future of Growth is in Asia 6. You would have heard this morning that Asia is driving global growth. a. Asia’s rise has been steady and rapid, in spite of uncertainties and downsides in the global trading environment. b. Asia is expected to grow at over 6.0% this year, more than double the expected growths of other regions in the world.2 7. As Asia expands, we will see: a. Local companies going global; b. International companies coming to meet the needs of growing markets in Asia; c. Growing cross-border commercial activity, which will lead to potential cross-border disputes, and an increase in demand for dispute resolution services. 8. The ‘Asia effect’ is already evident in arbitration. a. The Global Arbitration Review estimated that between 2012 and 2016, there was a 37% increase in cases administered by 11 arbitral institutions worldwide. b. But caseloads of institutions outside Asia grew by 13%, whereas caseloads of institutions in Asia grew by more than 75%! 9. This effect will be multiplied by ambitious plans such as Belt and Road Initiative, which will greatly enhance economic cooperation 2 Asian Development Bank, Asian Development Outlook 2018, April 2018. 2 EMBARGOED TILL DELIVERY. PLEASE CHECK AGAINST DELIVERY. and interdependence within Asia, and between Asia and the rest of the world. 10. All this augurs well for Singapore. a. As an international commercial hub strategically situated in Asia, we have long been connecting Asia with the rest of the world, and connecting the rest of the world with Asia. b. Let me explain how we can play a role in unlocking Asia’s potential, and enabling others to capture opportunities in this part of the world. c. I will speak about two areas: infrastructure and dispute resolution. III. Meeting Asia’s Infrastructure Needs 11. Asia is hungry for infrastructure. a. Its economies are growing, urbanising, and its people becoming wealthier. b. The UN projects that by 2030, 24 of the world’s 41 megacities will be in Asia.3 c. These cities, and the rest of Asia, will need infrastructure and urban solutions – over USD 1.7 trillion of it per year, from 2016 to 2030.4 d. But the region’s infrastructure needs remain unmet. 12. Singapore is in a unique position to bridge this infrastructure gap. a. We are developing ourselves as an infrastructure hub for Asia, to connect supply and demand, where infrastructure-related expertise, financing, and support can come together. 3 United Nations, “The World’s Cities in 2016”. The UN defines megacities as urban areas with populations of at least 10 million. 4 Asian Development Bank, “Asia’s Next Infrastructure Boom”, September 2017. 3 EMBARGOED TILL DELIVERY. PLEASE CHECK AGAINST DELIVERY. b. We have built up our own expertise in infrastructure, arising from our own experience in urbanisation. This technical knowledge can be put to good use to serve the region’s needs. c. As an international financial centre, we are a one-stop shop for all your infrastructure financing and project structuring needs. i. The World Bank’s first Infrastructure and Urban Development Hub is situated in Singapore, co-locating the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). They provide a critical source of project structuring knowledge and financing. ii. Through the Hub, regional governments can access the Global Infrastructure Facility (GIF), which facilitates the preparation and structuring of complex infrastructure public-private partnerships. Singapore is a founding funding partner of GIF.5 iii. Our strong position in world capital markets makes us an ideal place to raise financing and mobilise investments. iv. Our banks have a deep understanding of Asia’s infrastructure investment needs, and a track record of financing projects. d. We also have strong professional services to support infrastructure work. i. Our largest accounting firms – PwC, Deloitte, Ernst & Young and KPMG – provide project advisory services to the region, including in financial optimisation, model development and stress testing. ii. As an international legal services hub, we are also able to provide strong advice on infrastructure work. Our 5 largest Singapore Law Practices – Allen & Gledhill, Dentons Rodyk & Davidson, Drew & 5 Together with the World Bank Group and four other countries. 4 EMBARGOED TILL DELIVERY. PLEASE CHECK AGAINST DELIVERY. Napier, Rajah & Tann and WongPartnership – are the largest in Southeast Asia, with strong regional practices. Top international law firms here, such as Latham & Watkins and Allen & Overy, have active infrastructure practices. 13. As you can see, what we are doing is convening all the players necessary to get infrastructure projects off the ground. 14. We are taking this one step further with the establishment of Infrastructure Asia, which I understand Minister Heng spoke about this morning. a. Infrastructure Asia is set up by Enterprise Singapore and the Monetary Authority of Singapore. The office is meant to take advantage of the collective capabilities of the public and private sectors, and catalyse projects to meet Asia’s infrastructure needs. What exactly will it do? i. It will connect local and international stakeholders across the value chain, deepen our understanding of the pipeline of projects in the region, and facilitate investments in these projects. ii. It will also create platforms for discussions between asset owners, financiers, multilaterals and governments. An example is the Asia-Singapore Infrastructure Roundtable that will take place later this year. 15. We hope that by bringing together developers, investors, multilaterals, and legal, accounting and financial services providers, we will be able to support the development of the region. IV. The Resolution of Infrastructure Disputes, The Infrastructure of Dispute Resolution 16. Singapore’s gearing up to be the infrastructure hub for Asia means greater opportunities for infrastructure-related dispute resolution, especially arbitration. 17. Infrastructure dispute resolution is high-value as infrastructure projects tend to be complex, capital-intensive, and long-term. 5 EMBARGOED TILL DELIVERY. PLEASE CHECK AGAINST DELIVERY. 18. However, it is not limited to infrastructure disputes. 19. Infrastructure is itself an enabler of commerce: more ports, airports, roads and railways mean more trade and commercial transactions. This will inevitably result in more commercial disputes. 20. Singapore has the right ecosystem to cater to this growing demand for dispute resolution. a. We are a jurisdiction known for trust, neutrality and rule of law. This makes us a natural venue for dispute resolution. b. Top international institutions that handle infrastructure disputes, including investment disputes, have set up offices in Singapore – i. Arbitrations can be handled by the International Centre for Settlement of Investment Disputes (ICSID), the International Court of Arbitration of the International Chamber of Commerce (ICC-ICA); and the Permanent Court of Arbitration (PCA). c. SIAC is also well positioned to handle infrastructure-related disputes. i. Its panel includes arbitrators with expertise in fields such as energy, engineering and finance. d. The Singapore International Commercial Court (SICC) and the Singapore International Mediation Centre (SIMC) offer international litigation and mediation as alternatives to arbitration. e. Parties who resolve their infrastructure disputes in Singapore can also tap on a readily available pool of professional service providers. i. International consultancies like Navigant and FTI, which provide dispute advisory and expert testimony services, have set up offices in Singapore. If a dispute arises over a construction delay, such firms can help parties map 6 EMBARGOED TILL DELIVERY. PLEASE CHECK AGAINST DELIVERY. out the sequence of events involved, and analyse the factors and impact at each stage. 21. We have also taken a holistic approach to build up physical infrastructure for dispute resolution. a. Just as we are bringing infrastructure players together in Singapore, we have already been bringing together institutions,