Confidentiality in International Arbitration:
How Singapore Stands Out

Why Confidentiality Matters in Arbitration?

Confidentiality is a key reason businesses opt for arbitration instead of litigation. Unlike court proceedings, which are generally open to the public, arbitration offers a private forum for dispute resolution. This is especially important in commercial disputes, where sensitive information such as trade secrets, financial data, and strategic business decisions are often at stake.

The benefits of confidentiality in arbitration include:

●      Protection of sensitive business information – Companies can resolve disputes without exposing proprietary data to competitors or the public.
●      Preservation of reputation – Avoiding public disputes prevents reputational damage that could impact investor confidence and business relationships.
●      Encouragement of open discussions – Parties are more likely to negotiate and cooperate when they know the proceedings are private.
●      Avoidance of unwanted publicity – Businesses can manage legal matters discreetly without media attention or regulatory scrutiny.

However, confidentiality is not a guaranteed feature of arbitration. The extent to which proceedings remain private depends on the legal framework of the jurisdiction in which arbitration is seated. This is where Singapore stands out, offering a well-defined and robust legal structure that upholds confidentiality in arbitration.

Legal Framework Supporting Confidentiality in Singapore

Singapore has positioned itself as a leading arbitration hub, thanks to its strong legal framework that ensures confidentiality in both international and domestic arbitration. Key legal instruments governing confidentiality in Singaporean arbitration include:

1. The International Arbitration Act (IAA)
   The International Arbitration Act (IAA) governs international arbitration in Singapore and provides a legal basis for confidentiality.
   Key confidentiality provisions under the IAA include:
   ●      Court proceedings related to arbitration are generally conducted in private. Section 12 of the IAA allows courts to impose confidentiality measures unless disclosure is necessary for justice.
   ●      Parties can agree to confidentiality clauses, ensuring that arbitration-related information remains private. This means that unless specifically agreed upon, the details of arbitration proceedings, evidence, and awards are not made public. 
   This statutory protection strengthens Singapore’s reputation as a jurisdiction that respects commercial sensitivity while balancing transparency where required.
   
   
2. The Arbitration Act (AA) 
   The Arbitration Act (AA) governs domestic arbitration in Singapore and contains confidentiality provisions similar to those in the IAA. Under the AA:
   ●      Arbitration hearings are conducted in private unless otherwise agreed by the parties.
   ●      Documents and information disclosed during arbitration remain confidential.
   ●      Awards are not published unless both parties consent. 
   These provisions align with international best practices, making Singapore an attractive jurisdiction for companies seeking discreet dispute resolution.
   
   
3. The Singapore International Arbitration Centre (SIAC) Rules 
   The Singapore International Arbitration Centre (SIAC) is one of the world’s leading arbitration institutions, and its rules further reinforce confidentiality.
   
   Rule 39 of the SIAC Rules states that:
   ●      All arbitration-related information, including pleadings, evidence, and awards, is confidential.
   ●      Disclosure is only permitted when required by law or agreed upon by all parties.
   ●      Third parties cannot access arbitration records without permission.
   
   These rules ensure that parties using SIAC arbitration can expect a high level of privacy, further distinguishing Singapore as a pro-confidentiality jurisdiction.  

How Singapore Stands Out 

1. Strong Institutional Support
   Singapore is home to world-class arbitration institutions such as the Singapore International Arbitration Centre (SIAC) and the Singapore International Mediation Centre (SIMC). These institutions offer clear confidentiality provisions, reinforcing Singapore’s reputation as an arbitration-friendly jurisdiction.
   
   
2. Court-Backed Confidentiality 
   Singaporean courts consistently uphold arbitration confidentiality. Unlike some jurisdictions where arbitration-related court proceedings are public, Singapore’s courts ensure minimal disclosure.
   
   
3. Government and Legislative Commitment 
   The Singapore government actively supports arbitration through pro-arbitration policies and continuous legal enhancements to uphold confidentiality.

Key Benefits for Businesses

Singapore’s commitment to confidentiality offers businesses:

●      A secure dispute resolution environment
●      Protection of trade secrets and sensitive information
●      Reduced risk of reputational damage
●      A competitive advantage in international dealings

Learn more about our arbitration services and how we can assist with confidential dispute resolution. For further inquiries, contact us here.

Singapore’s comprehensive legal framework, institutional support, and court-backed confidentiality make it a premier arbitration hub. Businesses seeking a secure and private dispute resolution mechanism will find Singapore an excellent choice for international arbitration.

FAQs

Is confidentiality in Singaporean arbitration absolute?
Confidentiality is robust but not absolute. Disclosure may be required in limited circumstances, such as legal obligations or public interest considerations.

Can parties contractually enhance confidentiality?
Yes, parties can include specific confidentiality clauses in their arbitration agreements to further safeguard sensitive information.

How does Singapore compare to other arbitration hubs in terms of confidentiality?
Singapore offers stronger confidentiality protections compared to jurisdictions like the UK and the US, where arbitration-related court proceedings may be public.

What steps can businesses take to ensure confidentiality in arbitration?
●      Choose Singapore as the seat of arbitration
●      Opt for SIAC-administered arbitration
●      Include clear confidentiality clauses in agreements