Rule of law all the more important, precious in troubled geopolitical environment: SM Lee

The rule of law can facilitate cross-border commerce even amid geopolitical tensions, and the reluctance of countries to resolve disputes through adjudication and arbitration.

In a troubled geopolitical environment, international rule of law becomes all the more important and precious, said Senior Minister Lee Hsien Loong on Jan 14.

Speaking at a dinner during the Singapore International Commercial Court (SICC) conference, SM Lee said international business still needs to be done, and parties still need to agree on how to resolve cross-border commercial disputes when these arise.

The SICC should be well placed to take advantage of this reality, he said, adding that it will benefit from Singapore’s reputation and track record as it acts as a forum for international dispute resolution.

SM Lee said: “Indeed, in this environment, when businesses decide where and how their contracts should be adjudicated and disputes resolved, the reputation and impartiality of a jurisdiction and its institutions become even more important considerations.”

Addressing about 430 local and international delegates from across 15 jurisdictions at Parkroyal Collection Marina Bay, SM Lee said the SICC can count on the backing of Singapore’s mature, established and forward-looking legal system.

He added that it also has the support of a government that remains committed to the success and efficacy of the transnational commercial justice system.

The SICC was established in 2015, to meet the growing demand for effective transnational dispute resolution through litigation.  

SM Lee said the decision to create the forum was rooted in Singapore’s overall emphasis on the rule of law, in both domestic and international affairs.

He added that a strong rule of law has been a cornerstone of the Singapore model, and has underpinned its progress as a nation.

For laws to be soundly interpreted and effectively enforced, SM Lee said the court system demands judges who are as able as the counsel who appear before them; incorruptible; and who can dispense justice reliably, consistently and expeditiously.

SM Lee noted that over the years, Singapore has developed and evolved the system it inherited from the British to suit the Republic’s unique context.

The country modernised and streamlined its court processes and rules, and created jurisprudence that is now cited internationally, even in English courts.

He added that Singapore also staffed the system with capable officers, and ensured competitive and realistic remuneration for judges and legal professionals in the public sector.

“We did all this not to impress anyone, but because we are convinced Singapore’s success depends on strong rule of law, and strong institutions that can enforce the laws effectively,” said SM Lee.

He said this effort to build a practical, functioning legal and judicial system that delivers real justice for all earned acceptance, trust and respect – both within and outside Singapore.

SM Lee added: “Today, the rule of law permeates every aspect of Singapore’s governance. Singaporeans enjoy law and order, and feel safe in their homes and on the streets.”

Businesses also enjoy commercial certainty, knowing that contracts can be enforced and will be honoured, and that disputes will be resolved expeditiously and impartially.

SM Lee said foreign investors trust their investments here to be secure; that commitments will be upheld, and assets will not be arbitrarily expropriated.

The rule of law is equally vital between nations, he said, adding that all countries depend on a stable, rules-based global order.

He said that ideally, disputes between states should be resolved peacefully and impartially, through established international fora.

These include the International Court of Justice (ICJ), the Permanent Court of Arbitration and the World Trade Organisation.

The alternative is a world without rules.

“It would certainly be extremely challenging for small countries like Singapore, for whom rules and treaties are existential necessities, vital instruments for protecting their legitimate interests,” SM Lee noted.

That is why the Republic consistently speaks out in support of international law, and upholds rights and responsibilities codified in international agreements and treaties, like the UN Charter and UN Convention on the Law of the Sea.

That is also why Singapore is, for the first time, putting forward a candidate, ambassador Rena Lee, to be a judge of the ICJ, he said.

In his speech, SM Lee noted that while the state is the ultimate enforcer of domestic laws, there is no ultimate enforcer in international relations.

He added: “Every country declares their respect for international rule of law, and claims to act in accordance with it.

“But in practice, states interpret these international laws and norms to seek maximum flexibility and advantage for themselves.

“And because states are sovereign, ultimately they themselves can decide whether to submit to the jurisdiction of international bodies – no other power can force them to do so.”

SM Lee said states are often wary of international adjudication or arbitration, fearing that it would constrain their sovereignty.

“They may suspect that their legal case is not as strong as they proclaim. They may prefer to let an issue remain unresolved than to take the risk of litigation going against them. And the political cost of losing the case,” he added.

This reluctance has only grown with increasing geopolitical tensions.

On cross-border commerce, he said the rule of law can facilitate this – first, through international rules and laws that apply to all, including rules on how disputes should be resolved.

He cited the United Nations Commission on International Trade Law, which developed model laws and standards to harmonise trade laws across countries, including rules on how mediation can be used to resolve cross-border disputes. Singapore has contributed actively to this, he added.

SM Lee said: “These frameworks and agreements are enablers of global commerce – they foster predictability, reduce friction and enable trade to flourish.”

Beyond international rules and laws, there are options for businesses to make private arrangements to resolve their commercial disputes.

For example, businesses may go for commercial arbitration, where parties agree to resolve disputes through independent arbitrators.

They can also pursue international litigation before international commercial courts.

SM Lee said that in creating the SICC, Singapore believed the court would facilitate international commerce, by offering an additional forum for businesses to resolve complex, high-value, cross-border commercial disputes.

The SICC, together with the Singapore International Arbitration Centre, Singapore International Mediation Centre and Maxwell Chambers, would provide a full suite of dispute resolution services for international commercial parties to resolve their disputes at a trusted, neutral venue with high-quality jurisprudence, he added.

“The SICC has fully lived up to these expectations,” he said.

It has also found opportunities to work with like-minded partners, like the Bahrain International Commercial Court, which SM Lee said may offer a model for other future international partnerships.

The Senior Minister also thanked all who contributed to making the SICC a success, including Chief Justice Sundaresh Menon, who mooted the idea, and justices Quentin Loh and Philip Jeyaretnam, the court’s former and current presidents, respectively.

Source: Straits Times © SPH Media Limited. Permission required for reproduction.

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