Singapore to make bid to host international tribunal for investor-state disputes

In an effort to improve the current system of investor-state dispute resolution, Singapore plans to bid for the hosting of a new international tribunal, said Minister for Law Edwin Tong at the UNCITRAL Academy Conference on Tuesday (Aug 25). The Multilateral Investment Tribunal (MIT) is being negotiated by the United Nations Commission on International Trade Law (UNCITRAL) members and aims to replace the ad hoc arbitration process.

This move comes after a rise in treaty-based investor-state cases and growing discontent with the existing system's inconsistent rulings and concerns over arbitrator independence.

Singapore, as a neutral and stable jurisdiction with a robust legal framework and dispute resolution infrastructure, is well-suited to host the MIT. The city-state has developed its dispute resolution ecosystem through institutions such as the Singapore International Arbitration Centre, the Singapore International Commercial Court and the Singapore International Mediation Centre.

Additionally, Singapore's strategic location at the heart of Asia and deepening relationships with both developed and developing countries make it an ideal candidate to serve states and investors from diverse economies.

The MIT will be supported by a dedicated tribunal building, financial contributions to support participation by developing and least-developed countries, and services such as translation and transcription. The bid will be accompanied by a new Centre for Arbitration and International Dispute Resolution, led by Professor Stavros Brekoulakis, which will focus on research and policy development in the area of investment dispute resolution.