As regular readers will know Singapore has set up a new Arbitration centre with the say so of the govt to try and challenge Hong Kong’s role the the central Asian arbitration point..
Bloomberg have published a good piece today on the set up and what Singapore hopes to achieve by creating the Arbitration Centre
Tey introduce their piece by writing:
Aug. 31 (Bloomberg) — When Matthew Gearing represents Deutsche Bank AG in its oil hedging dispute against Sri Lanka?s government, some 20 lawyers, arbitrators and witnesses from the U.K., Belgium, New Zealand and Pakistan will be enlisted, too.
?When there?s an international case in Singapore like this, you attract a cast from all over the world,? said Gearing, a Hong Kong-based partner at Allen & Overy LLP.
That sort of influx could produce a ?multibillion-dollar industry? for Singapore as cross-border disputes increase in the region, Law Minister K. Shanmugam said. To spur growth, the city-state has opened its legal market to foreign firms, offered tax incentives and developed a complex with 14 hearing rooms.
That?s a direct challenge to nearby Hong Kong, host of six times as many arbitration cases last year. Given a projected spike in arbitration, there may be enough new business for both cities to enjoy a rise in dispute revenue.
?There?s a very, very serious need for arbitration in this region,? Shanmugam said, citing the abundance of foreign investments in a region with less-developed institutions.
Arbitration provides companies with more of a level playing field in resolving disputes than some nascent court systems in the region, international lawyers said.
China, the most attractive country for foreign direct investments according to a United Nations Conference on Trade and Development survey, was ranked 69th out of 134 countries by a World Economic Forum report for its judicial independence.
Asia?s Best Courts
India, the third-most attractive investment destination globally behind the U.S., was ranked No. 43. Hong Kong and Singapore were ranked as having Asia?s best court systems.
Singapore hadn?t exploited its key strengths in arbitration in the past, Shanmugam said. ?We needed to put together some of the pieces,? he said, such as allowing foreign lawyers to practice local corporate law. The country also began offering tax exemptions for international arbitration work in 2007.
Full report at?? http://www.bloomberg.com/apps/news?pid=20601087&sid=ahCVZh1pBhKo
