Resolving Startup Disputes: Exploring Arbitration Reforms through Singapore’s Legal Lens

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Singapore has established itself as a leading global arbitration hub, especially for cross-border commercial disputes involving various industries like fintech. In 2025, the Singapore International Arbitration Centre (SIAC) introduced the seventh edition of the SIAC arbitration Rules, the 2025 SIAC Rules. This reform signifies the state’s commitment to innovation, efficiency, and cost-effectiveness in arbitration, opening new avenues for the start-up ecosystem. These changes are relevant to start-ups, which increasingly rely on arbitration to handle business disputes in a fast-paced, tech-driven world.  

 

Key Arbitration Reforms in Singapore

Singapore is witnessing various changes in the arbitration framework. The 2025 SIAC Rules, effective from 1st January 2025, enacted various key reforms, which include

  • Streamlined procedure: For disputes not exceeding S$1 million, only a sole arbitrator may be appointed, and the final award is to be rendered within 3months from constitution of the tribunal, unless the President determines upon application of a party that the Streamlined Procedure shall not apply to the arbitration. However, the parties can agree to the application of a streamlined procedure under Rule 13, or the parties may, in agreement in writing, exclude the application of the Streamlined Procedure. This streamlined procedure will drive cost-effectiveness for startups with small value and straightforward disputes.
  • Emergency arbitrator procedures: Prior to the filing of a Notice of Arbitration, parties can now seek relief, including ‘ex parte protective orders’ to prevent disruption of emergency relief measures. This Protective Preliminary order (PPO) provision enables the parties’ ability to get urgent remedies early in the disputes. SIAC is one of the first international arbitration institutions to expressly permit ex parte emergency relief.
  • Coordinated Proceedings: Under Rule 17, Tribunals can order coordinated hearings or aligned procedures when multiple arbitrations involve common legal or factual issues without formal consolidation. This provision helps facilitate efficient dispute management.
  • Third-Party Funding Disclosure: Under Rule 38, parties are required to reveal any third-party funding arrangements. This promotes transparency and enables the tribunals to consider the interests of the funders when deciding the cost apportionment. There is a limit on the party’s right to enter into a third-party funding agreement after the constitution of the tribunal, if it could create a conflict of interest.
  • Preliminary Determination: Under Rule 46, parties can apply to the Tribunal for a final and binding preliminary determination of any issue in the arbitration. This provision now provides a clear route for the parties to make an application for preliminary determination of issues on an expedited basis.

Apart from the 2025 SIAC rules, the International Arbitration Act (IAA), governing international disputes based on the UNCITRAL Model law, is expected to be amended. The Singapore International Dispute Resolution Academy (SIDRA) has undertaken a comprehensive review of the IAA and made recommendations for the reforms. The SIDRA report proposed reforms to eight key areas, which include:

  • Power of the courts regarding the costs subsequent to setting aside of an arbitral award.
  • Separate cost principles for applications to set aside.
  • Introduction of the requirement of leave for appeals.
  • Time limit for setting aside applications.
  • Right of appeal of points of law
  • Governing law of the arbitration agreement
  • Review of tribunals’ jurisdiction
  • Summary disposal

Start-Up Disputes and Arbitration in Singapore

With Singapore being the International Arbitration Hub, while also providing an innovative ecosystem for start-ups, addressing the disputes is challenging, especially in the highly commercialised tech world. Start-ups face unique commercial challenges, and arbitration is an appealing way of resolving disputes. Such challenges include the limited resources, high sensitivity of business information and often international operations. Arbitration is one of the best methods to address the challenges and the complex commercial disputes, as it aligns with the needs in several ways:

  • Cost-effectiveness and Speed: The Streamlined process of arbitration cuts down the legal fees and reduces the time spent in disputes. This is crucial for start-ups operating with constrained budgets and requiring quick conflict resolution to maintain the business momentum.
  • Confidentiality: Arbitration proceedings ensure that confidential information remains secret, with the hearings protecting trade secrets, business models, and investor information essential for a start-up’s competitive advantage.
  • Expertise: Parties can choose arbitrators with specific industrial knowledge, ensuring informed adjudication of complex disputes involving intellectual property, regulatory compliance, and failure of smart contracts.
  • Cross-Border Enforceability: As the Singaporean law benefits from global enforcement under the New York Convention, the arbitral awards are enforceable across over 170 states. This allows start-ups to enforce their rights even in foreign jurisdictions.

Singapore’s arbitration reforms are not isolated legal changes; they match the country’s goals to promote innovation, entrepreneurship, and investment. The Singapore Economic Development Board (EDB) and Enterprise Singapore have actively supported frameworks that build investor confidence.

 

By including arbitration-friendly measures within a stable regulatory framework, Singapore enables start-ups and investors to focus on growth, thereby reposing trust in the availability of efficient dispute resolution methods.

 

Conclusion

Singapore’s 2025 arbitration reforms improve the dispute resolution mechanism for start-ups in various industries. The streamlined procedures, transparency measures, and flexible processes enable faster, cost-effective, efficient,  and confidential adjudication that fits a start-up’s operational needs. By including strong arbitration clauses and using Singapore’s legal system, start-ups can manage risks, protect their innovations, and keep operations running smoothly during commercial disputes.

 

  • Sanjay Sethiya is the Founding Partner at Law Square, Advocates & Solicitors.
  • Kandukuri Lakshmi Priya is an intern at Law Square and a 4th year student, Alliance University, Bangalore.