The fallout from the coronavirus pandemic has severely crippled businesses & economies around the world. It has also disrupted supply chains causing frequent non-compliance with contractual obligations. Therefore, the recent years have seen a growing demand for more effective ADR mechanisms in Singapore & other jurisdictions.
Normally, filing a lawsuit to resolve a dispute takes more time & is more expensive. The situation has gotten even more complicated after the governments of many countries have put in place strict quarantine measures meant to prevent the spread of the coronavirus pandemic.
Therefore, individuals planning to open a company in Singapore should keep in mind that mediation is, by far, the best mechanism that they now have at their disposal for settling commercial disputes in the Republic of Singapore & many other countries of the world.
To make resolving disputes in the Republic of Singapore during the coronavirus pandemic easier, the SIMC has recently come up with the SIMC Protocol. Meant to be an addition to the already existing legislation, it establishes a moratorium which prevents parties to a dispute from initiating legal action against one another. The document also provides them with an option to settle a dispute in Singapore without going to court.
Those seeking to open a company in Singapore should know how the Protocol is applicable to their particular situation. They should take into account:
- whether a dispute has occured due to the pandemic;
- whether the SIMC Protocol is applicable to a dispute.
If the Protocol is applicable, parties applying for mediation in the Republic of Singapore must pay two hundred fifty dollars (the regular fee is ten thousand dollars).
After paying the fee, parties are to initiate proceedings within 10 business days & conduct mediation online.
Depending on the amount in dispute, parties will have to pay the following fees:
- up to 1 mln SGD ($3000);
- from SGD1 to 5 mln (six thousand five hundred US dollars or zero point three percent of the amount in dispute);
- in excess of SGD5 mln (ten thousand US dollars or zero point thirteen percent of a disputed amount).
What makes Singapore the best jurisdiction for resolution of an international dispute through mediation is the fact that the SCM was signed precisely here. 2019 saw forty six states sign the SCM, with another six joining the agreement later on. The aim of the SCM was to make recognition of international settlements arising from mediation more flexible & efficient.
Seeking to settle a dispute through mediation in the Republic of Singapore? Need advice on mediation regulation in the Republic of Singapore? Why not contact IQ Decision UK?