Why Choose Singapore Law
- Transparent, neutral and predictable
- Modern and relevant
- International standards
- Business-friendly framework
- Respected judiciary
- Fast and Cost-Efficient
Transparent, neutral and predictable
Singapore’s sound legal framework is underpinned by strong rule of law, low corruption, and a pro-business environment.
Singapore law is fair and transparent, with reliable and predictable results.
While rooted in the English law and practice, Singapore’s legal system and laws have constantly evolved to incorporate the best practices of other jurisdictions. Singapore’s legal system also retains the common law tradition – judicial precedence is an important feature, which offers greater legal certainty for users.
Strongly associated with the strengths of the Singapore legal system, Singapore law is frequently adopted by contracting parties as a neutral choice of law, even if there is no connection between the parties or the transaction, and Singapore.
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Modern and relevant
Responsive to changing global commercial practices, Singapore’s jurisprudence and legislation maintain a strong internationalist outlook, continuing to absorb and modify the common law as well as best practices from other mature legal systems.
Singapore law is uniquely placed to reflect the commercial context in Asia and is frequently chosen as the applicable law for contracts.
Against the backdrop of COVID-19 pandemic, here are some laws which may address the concerns of businesses:
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Singapore COVID-19 (Temporary Measures) Act 2020 provides temporary relief from the inability to perform contractual obligations under certain contracts, if that inability is materially caused by a COVID-19 event. For more information, please click here.
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Singapore Insolvency, Restructuring and Dissolution Act 2018 include provisions relating to debtor-in-possession rescue financing, cross-border debt restructuring, cross-class “cram down” mechanisms and a worldwide stay on proceedings, not only for Singapore incorporated debtors, but also foreign debtors. For more information,
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International standards
Singapore adheres to international commercial standards and has ratified many multilateral commercial law treaties, such as the Hague Convention on Choice of Court Agreements, the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards, the Singapore Convention on Mediation, the UN Convention on Contracts for the International Sale of Goods, the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks and various other international agreements.
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Business-friendly framework
Singapore laws include an established and well-developed body of commercial laws, equipped to deal with cross-border transactions. In particular:
- Singapore contract law respects party autonomy and freedom of contract.
- Singapore’s rules of contractual interpretation do not interfere with, but seek to give effect to the contracting parties’ commercial intentions.
- Singapore courts generally recognise and enforce clauses relating to contractual indemnities and limits on damages.
- Under the Contracts (Rights of Third Parties) Act, parties to a contract are allowed, in specified circumstances, to confer enforceable rights on a third party.
- Major forms of commercial security and quasi-security interests (such as guarantees and indemnities) are protected, through a system that allows quick and easy enforcement of such interests.
- Effective provisional remedies are also available, such as injunctions and stays.
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Respected judiciary
Singapore’s Supreme Court Judges are respected jurists with substantial expertise in adjudicating complex cross-border commercial disputes. Singapore has an established and developed body of jurisprudence with a strong foundation, and a legislative framework for commercial law that is modern and effective.
Singapore Courts interpreting Singapore law contracts will primarily look to the ordinary meaning of the language in contract (i.e. what a reasonable person would have understood the term to mean) instead of giving undue weight to the subjective common intent of the parties. This approach gives commercial parties greater certainty as to how the Singapore Courts will interpret their contracts.
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Fast and cost-efficient
Resolving a commercial dispute through the Singapore Courts takes on average 164 days – less than half the time in New York and about a third of the time in London.
Singapore law provides clear ethical guidelines on legal fees in addition to judicial control over legal fees, generally leading to costs savings as compared to major centres such as London or New York.
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INTERNATIONAL RANKINGS
The World Justice Project Rule of Law Index 2020
- Singapore ranks 1st in Asia and 12th worldwide.
Transparency International’s Corruption Perceptions Index 2019
Singapore is the 4th least corrupt country in the world, and the only Asian country in the top 10 countries in this ranking.
World Bank Group’s Doing Business 2020
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Singapore ranks 2nd in the world for ease of doing business.
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Singapore ranks 1st globally in the “contract enforcement” variable, which measures the efficiency of a judicial system in resolving commercial disputes.
World Economic Forum’s Global Competitiveness index 2019
- Singapore ranks 2nd in the world for intellectual property protection