Commercial Law & Arbitration
Home>Laws of Singapore>Legal Developments> Commerical Law and Arbitration in Singapore
Singapore: The Premier Choice For Governing Law - A personal view by Jeffery E H Tan
The choice of Singapore as the premier location for MNC investments has been well documented by the international business community. A lesser known, but no less significant fact, is the value that Singapore Laws bring to the regulation of regional and global commercial transactions.
As a former colony of the United Kingdom, Singapore inherited its common law traits from one of the most developed and business friendly legal systems in the world. From this flow many tangible benefits that align well with the various demands of today’s business world.
Many corporations operating in Asia are faced with the frequent challenge of deciding on which governing law to use for their commercial agreements. The choice is often a reflection of the relative ‘power play and standing’ between the parties. Over the years, I have found that this tussle is easily resolved with the use of Singapore Law. The transparency, neutrality and responsiveness of Singapore Law to the evolving business demands are key factors that have allowed me to persuade many of my foreign counterparts and partners to accept its use in governing our commercial relationship.
Just as UK laws are well accepted in the world of finance and banking by parties from different (non-UK) jurisdictions, I have found it easy to promote the use and acceptance of Singapore Law in various commercial agreements in Asia. Its predictability, ease of understanding and pragmatic approach in resolving issues are all key attributes that enable many MNCs to make the decision to adopt Singapore Law as the first choice of governing law in their regional transactions.
The well developed English Law roots from which Singapore Law emanates have also played a role in persuading many MNCs in their decision. This appeals immensely to the parent jurisdictions and headquarters of MNCs who place a premium on legal certainty and objectivity.
Perhaps the one distinguishing mark that Singapore Law possesses (apart from the many virtues that make it a great law to govern transactions) is the fact that Singapore has the ‘Entire Value Chain’ of a world class legal system that serves and responds to the needs of the ever evolving business world.
The manner and ease with which Singapore laws are litigated, arbitrated and enforced all make a compelling case to have it govern international contracts. The fact that Singapore excels in having world class infrastructure and great legal talent that meets the complex needs of modern day commercial disputes, is an added bonus to global businesses that choose to use Singapore law.
In a recent international arbitration that I was involved in, the use of Singapore Law to govern the dispute proved to a positive experience: The speed and efficiency of proceedings coupled with the availability of competent arbitrators and local counsel who facilitated interlocutories efficiently (swiftly grasping the various complex technical aspects), all contributed to a swift settlement of the matter to the satisfaction of concerned parties.
The frequent reference to Singapore as a ‘Little Red Dot’ on the World Map is perhaps apt in representing its laws and legal system – Focused and To the Point in meeting the world’s business needs.
.
Jeffery E H Tan is a qualified Singapore lawyer who was most recently the Asia General Counsel and Assistant Secretary of Motorola Inc. He also ran the business of Motorola Singapore – the corporation’s Asia Pacific Regional HQ - as its President. This article, written by Jeffery, reflects his past practical experiences in using Singapore law in commercial agreements and for dispute resolution.
For an index of articles on Singapore commercial law, please click here.