SINGAPORE: An Introduction

Key Developments in the Legal System in Singapore in 2024

Introduction

Singapore’s strategic position as a financial and commercial hub, as well as its strong legal system, strict adherence to the rule of law, first-class judiciary and first-rate legal infrastructure remain reasons why multi-sector investments continue to flow into Singapore and users continue to regard Singapore as a go-to dispute resolution forum.

The Business Times: Singapore Financial Daily has reported that the city-state is the preferred choice of arbitral seat in cross-border transactions in Asia. The choice of Singapore law as the governing law of contracts has grown in tandem.

This overview explores the key developments affecting clients and the legal profession in Singapore in 2024, focusing on dispute resolution trends, new legislation and the challenges that clients must confront.

Activities and trends

Singapore’s success as a leading international commercial dispute resolution hub continued in 2024.

Dispute resolution centres in the jurisdiction have reported a surge in their cases and continue to be widely used. For example, the Singapore International Mediation Centre reported that since its inception in 2014, it has emerged as a major venue for alternative dispute resolution in Singapore (mediating over 430 cases) and its caseload, including on crypto-related matters, is expected to increase.

The Financial Industry Disputes Resolution Centre, an independent institution which assists in the resolution of disputes between consumers and financial institutions, reported a 32% increase in its claims in FY 2024.

The Singapore International Dispute Resolution Academy (SIDRA) International Dispute Resolution Survey 2024 has also found that: (i) the Singapore International Commercial Court (SICC) was the most-used international commercial court globally in 2024; and (ii) the Singapore International Arbitration Centre (SIAC) is among the three most commonly used arbitration institutions worldwide.

Notable trends in dispute resolution in 2024:

Technological advancements

The legal industry is increasingly utilising technology to enhance efficiency in dispute resolution. In September 2024, the Singapore Courts issued Registrar’s Circular No 9 of 2024, which sets out guidelines to be followed by court participants who use generative AI. In August 2024, the SIAC announced the launch of the “SIAC Gateway”, which the SIAC says is an online case management system that offers a range of advanced capabilities designed to streamline arbitration case management from filing to the final award.

Growing preference for mediation

Mediation is gaining traction as an effective alternative to traditional litigation and arbitration. A report issued by SIDRA revealed a clear shift in user preference, with mediation emerging as the top choice for efficiency and cost-effectiveness.

International developments

Singapore’s international prominence is as strong as ever before. Several law firms have announced the opening of offices there. Singapore has also enhanced its ties with international arbitration bodies and dispute resolution institutions globally. For example, in March 2024, the Government of Singapore and the Government of the Kingdom of Bahrain signed a bilateral treaty to collaborate on the establishment of the Bahrain International Commercial Court. Furthermore, in October 2024, the Singapore International Commercial Court (International Committee) Bill (the “Bill”) was introduced to establish a dedicated international committee of the SICC. If passed, the international committee will be able to hear commercial disputes and appeals involving prescribed foreign jurisdictions.

Legal developments and changes 

A number of legislative changes and new laws were introduced in 2024, including to foster a responsible and transparent business environment, to protect against the dangers of money-laundering and to uphold the integrity of, trust in and reputation of the judiciary. Some of these are summarised below:

• In January 2024, the Financial Institutions (Miscellaneous Amendments) Bill 2024 (the “FIMA Bill”) was introduced. The FIMA Bill enhances and rationalises the Monetary Authority of Singapore’s (MAS’s) investigative, reprimand, supervisory and inspection powers across various Acts under MAS’s purview. These Acts are namely: (i) the Financial Advisers Act 2001; (ii) the Financial Services and Markets Act 2022; (iii) the Insurance Act 1966; (iv) the Payment Services Act 2019 (PSA); (v) the Securities and Futures Act 2001; and (vi) the Trust Companies Act 2005. The FIMA Bill also includes miscellaneous amendments to certain Acts under MAS’s purview, which are: (i) consequential from the introduction of new processes; (ii) clarificatory or technical in nature; and (iii) meant to update provisions or remove certain administrative constraints.
• On 2 April 2024, MAS announced amendments to the PSA and its subsidiary legislation to expand the scope of payment services regulated by MAS and to impose user protection and financial stability-related requirements on digital payment token service providers. The amendments took effect in stages from 4 April 2024.
• The Anti-Money Laundering and Other Matters Bill, which was introduced in July 2024 and passed by parliament on 6 August 2024, will facilitate more effective prosecution of money-laundering offences, enhance inter-agency co-operation and improve processes relating to seized or restrained properties which are linked to suspected criminal activities.
• There have also been several legislative changes to employment law in Singapore. The Platform Workers Act was passed on 10 September 2024, with the aim of enforcing rights and protections for platform workers in the form of financial security, representation and workplace safety.
• The Administration of Justice (Protection) Bill 2024 has the main aim of clarifying that egregious abuses of the court process will amount to contempt of court. The Bill, which was passed in November 2024, sets out three categories of conduct that constitute contempt by interfering with the administration of justice: (i) a court proceeding that the person knows or should have known involves a deception of the court, is fictitious, or constitutes a mere sham; (ii) a court proceeding that the person knows or should have known is manifestly groundless or without foundation, and also involves the legal process being used for an ulterior or improper purpose; and (iii) multiple or successive court proceedings that the person knows or should have known are manifestly groundless or without foundation.

The introduction of these legislative amendments and laws, which cut across a wide spectrum of sectors and areas of law, reflects Singapore’s commitment to developing its legal system and strengthening its status as a trusted and efficient dispute resolution hub.

Looking ahead

With the trends and changes outlined above, clients and legal practitioners in Singapore may face new, and unprecedented, challenges in the future including:

• Regulatory compliance – the evolving regulatory landscape may require businesses, especially those operating across multiple jurisdictions, to actively adapt their policies and strategies.
• Increased legal costs – the costs associated with dispute resolution, whether through arbitration, litigation or mediation, are rising.
• Adaptation to technological changes – the rapid integration of technology within commercial operations and the wide array of software options available can be overwhelming. In addition, with the increasing acceptance and adoption of AI capabilities, clients and practitioners should consider adopting the most powerful and accurate tools available to stay competitive. This will also add to rising costs.

These challenges should be expected, especially in view of the changing economic landscape. According to the Ministry of Trade and Industry, while Singapore has projected growth at a rate of 1% to 3% in 2025, it expects heightened global uncertainties generated by, among other things, uncertainty over the policies of the incoming US administration (with risks tilted downside); a further escalation of geopolitical conflicts; and disruptions to the global disinflation process (which could lead to prolonged tightening of financial conditions and the desynchronisation of monetary policies across economies, potentially triggering latent vulnerabilities in financial systems).

To address such potential challenges and economic trends, businesses would benefit from updating and/or continuing to develop robust policies tailored to their operations. For those who find themselves in disputes, prioritising early resolution strategies or alternative dispute resolution methods would help to yield faster and more cost-effective outcomes. To deal with the changing technological trends, businesses should look into developing tailored technological strategies that comply with legal standards while enhancing operational efficiency.