The Ministry of Law (MinLaw) has approved changes that will be implemented on the 28th June, which will see the third-party funding (TPF) framework widened to allow for the inclusion of domestic arbitration proceedings, certain proceedings in the Singapore International Commercial Court (SICC), and related mediation proceedings.
The new funding options offer businesses an alternative option to generate funding, as well as helping to increase the competitiveness of Singapore’s international commercial dispute resolution market, benefiting both legal practitioners and buyers of legal services.
With effect from 28 June 2021, the categories of proceedings for which TPF is permitted will be extended to include:
- Domestic arbitration proceedings;
- Court proceedings arising from or connected with domestic arbitration proceedings;
- Proceedings commenced in the SICC, for as long as those proceedings remain in the SICC;
- Appeal proceedings arising from any decision made in the proceedings in paragraph 3c; and
- Mediation proceedings relating to any of the proceedings above.
MinLaw has suggested that the reforms will be particularly welcome against the backdrop of the COVID-19 pandemic, which has limited many claimants access to funds, creating extra financial constraints. The ministry feels that alternative funding options may present a partial solution to these issues.