Web Alert: Third party funding of disputes in Singapore
14 February 2017
On 10 January 2017, Singapore passed an amendment to the Civil Law Act to implement a framework allowing for third party funding in international disputes, in particular international commercial arbitration. This puts Singapore on the same footing as other major arbitral seats worldwide.
The amendment will now provide alternative funding options for international commercial arbitrations and related proceedings, including those in the maritime sector. Such funding however will need to be provided by qualified third-party funders. Third party funding will for the moment only be permitted for international commercial arbitration. The permitted categories of dispute may be broadened after a period of time.
The aim of the amendment is to continue supporting Singapore’s position as a key seat and service provider for international dispute resolution.