Singapore will bid to host international tribunal for investor-state disputes: Edwin Tong

Singapore has announced its intention to bid for the hosting of a proposed international tribunal aimed at settling disputes between foreign investors and sovereign states. This move comes amid the urgent need for a reliable investment dispute settlement system. Law Minister Edwin Tong announced the bid on August 25, noting that the rules-based order, which has driven global trade and investment growth, is facing strain due to challenges to multilateralism and potential erosion of the rule of law.

Tong emphasized Singapore's interest in maintaining confidence in the global system, stating that a size and power-driven order is untenable for a country like Singapore. The Multilateral Investment Tribunal is being negotiated by United Nations Commission on International Trade Law (UNCITRAL) member states. Tong highlighted the increasing number of investor-state disputes over the past decade and the need for a credible and trusted institution to resolve them, especially as states are intervening in areas such as public health, energy security, climate change, and national security.

Singapore offers a neutral and stable jurisdiction grounded in the rule of law and connected to both developed and developing worlds through trade and investment agreements. The government will back the bid with a fully equipped tribunal building, financial contributions to boost access for developing countries, and underwrite translation and transcription services.

A Centre for Arbitration and International Dispute Resolution (CAIDR) will be set up by MinLaw and National University of Singapore (NUS) to conduct research on sustaining the rules-based framework and offer advanced studies in international arbitration for practitioners.