- On 6 January 2017, we informed that the Singapore Parliament would be looking to pass legislative amendments to introduce a legal framework for third party funding for international arbitration in Singapore.
- We are pleased to update that these legislative amendments were explained in a second reading in Parliament on 10 January 2017 and passed into law on the same day.
- In the second reading, the Senior Minister of State for Law, Indranee Rajah SC, explained that this legislative framework will offer businesses an additional financing and risk management tool for international arbitration proceedings (and arbitration-related court and mediation proceedings), including the financing of valid claims in arbitration that they may otherwise not pursue due to financial constraints.
- The Senior Minister of State also shared that the third party funding legislative framework may be broadened in the future to other dispute resolution proceedings after a period of assessment.
- We will provide further updates on the progress of the relevant legislative amendments.
- Should you wish to discuss the impact of this development and how to manage the arbitration process favourably in a cost-efficient way, please do contact the team at Baker & McKenzie.Wong & Leow.