Singapore Government Press Release

Media Division, Ministry of Information and The Arts

36th Storey, PSA Building, 460 Alexandra Road, Singapore 119963.

Tel: 3757794/5

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Ladies and Gentlemen

I am pleased to be invited to give the opening address for this conference on Resolving Disputes.

This conference is timely. It will provide knowledge and better understanding to companies and individuals who are thinking of ways of resolving disputes that arise from their day-to-day business transactions. In this regard, the Enterprise Promotion Centre (EPC) makes a valuable contribution by promoting better understanding of different types of dispute resolution processes. Its work in this area, targeted at small business enterprises, will complement the efforts of the Ministry of Law and other agencies such as the Singapore Mediation Centre (SMC) to promote non court-based dispute-resolution processes. Small businesses will appreciate the availability of non-litigious forms of dispute resolution mechanisms as they are usually faster, less costly, and more suitable and constructive in maintaining on-going business and individual relationships.

Last year, the Ministry of Law set up an Alternative Dispute Resolution (ADR) Division. Its present emphasis is to promote and provide facilities for community mediation. Community mediation can play a critical role in promoting good neighbourliness, community bonding and social cohesion. This is a key requirement as we strive to rekindle the kampong spirit of old in our local communities.

The first Community Mediation Centre (CMC) was set up at Marine Parade in January this year. The response from the public has been good. The Centre has drawn considerable interest. To-date, the Centre has successfully mediated 14 disputes, involving mainly neighbours and family members. The success of any mediation session depends, to a large extent, on the skills and experience of the mediator, besides a willingness on the part of the disputants to seek mutually acceptable solutions. For this purpose, we have put emphasis on sound training for all our mediators. From 1 April 1998, we will have a pool of 30 mediators trained in community mediation. They comprise a mix of lawyers and other professionals, grassroots and community leaders and accredited mediators.

A target group of CMCs are quarrelling neighbours. The latest issue of the Sunday Times reported that quarrels between neighbours are on the rise in Singapore, with some leading to violence. The Marine Parade CMC has successfully resolved some disputes between neighbours. Its potential to play a role to curb this social phenomenon is immense. But the disputing parties must be willing to tap the CMC�s expertise. I urge disputing neighbours to do so. It is convenient and inexpensive, and they will not be forced to compromise. Better to talk it out early before one party gets hurt and the law takes its course.

The successful implementation of ADR requires the co-operation and collaboration of many agencies. We need to get feedback from a variety of sources. To facilitate this, MinLaw�s ADR Division has appointed an ADR Resource Panel, with representatives from different agencies in both the private and public sector, including MCD, MHA, the NUS Law Faculty, Singapore Academy of Law (SAL) and the Law Society of Singapore. We will continue to seek feedback and ideas on how to improve the mechanisms for resolving conflicts in Singapore. In the process, different groups can focus on different aspects.

In the longer term, the Division will work closely with other agencies such as the Singapore International Arbitration Centre (SIAC), SAL and the SMC to promote greater use of ADR such as mediation, arbitration and conciliation in a variety of sectors and settings, such as between buyers and sellers, suppliers and consumers and between professionals and clients.

Meanwhile, good progress has been made by the various agencies. For example, the SMC has, for some time now, realised the value of mediation to the construction industry. For this reason, the SMC started working very closely with the construction industry last year. It launched the Advisory Committee on Construction Mediation (ACCOM) to promote the use of mediation in the industry. The SMC also conducted a series of mediation workshops, one of which was specially designed for professionals from the construction industry. I understand that the SMC will soon accredit to its Panel of Mediators those professionals who have fulfilled its accreditation criteria. This new group of mediators from the construction industry will be engaged primarily in the mediation of construction disputes. Such efforts will help to ensure that ADR is widely accepted in the industry. MinLaw will support these and other initiatives.

As regards arbitration, companies with regional and international businesses will be encouraged, wherever applicable, to make use of SIAC�s services in resolving disputes. Apart from the confidential nature and flexibility of arbitration, an arbitral award obtained in Singapore can be enforced in over 110 countries. This conference will hence promote awareness amongst local companies of the benefit of incorporating an arbitration clause into their agreements and contracts.

To cater to the specific needs of the various industries, SIAC maintains four separate international panels of accredited arbitrators comprising of professionals and experts in the fields of shipping, insurance, construction, banking and international commercial transactions.

SIAC has also worked together with the governing bodies of the various industries to establish customised arbitration rules to suit the specific requirements of the respective industries. These rules include the Singapore Bunker Claims Procedure and the Singapore Timber Trade Procedure. These customised rules provide businessmen in the respective industries with a speedy, efficient and inexpensive method of alternative dispute resolution.

Major disputes can take up much time and resources, both of which companies large or small, can ill afford during these tight economic times. Businesses should focus their attention on steering themselves through the turbulent waters and surviving in the long term. Proper handling of disputes is one aspect of successful steersmanship. ADR should be explored to manage these disputes effectively. As such, this conference on ADR is well-timed to help our Singapore businesses cope with difficult business conditions at this time. Even when conditions improve, as they will, the lessons learnt at this seminar will remain useful and relevant.

Thank you.