Keynote Address by Minister for Culture, Community and Youth, and Second Minister for Law, Mr Edwin Tong SC, at the Singapore Chamber of Maritime Arbitration (SCMA) Conference 2025

25 MAR 2025

Mr Chao Hick Tin SC, Chairman of SCMA

Ms Corina Song, Vice Chairperson of SCMA

SCMA Board Members

Friends and colleagues

Distinguished guests

Ladies and gentlemen

I. Introduction

A very good morning to all of you. It is a real pleasure to join you here at this morning's SCMA Conference 2025. It is always a pleasure to support one of our leading dispute resolution institutions.
As you heard from Mr Chao earlier, SCMA started in 2004, and was then reconstituted in 2009. So, this year is either your 16th anniversary or your 21st anniversary, both of which are key milestone achievements – a transition from childhood to adulthood. So, this is a very important year.
To add to this, you stand on the cusp of a difficult 2025. SCMA will have to navigate its way in a very fast-changing and complex world, which is really the theme of today’s conference – Charting the future of maritime arbitration in a fast-changing and complex world, and what happens with geopolitics, innovation and sustainability, impacting the work that we do.

II. Focus of Speech

This theme also resonates with me, having sat through Budget debates, where it was a constant refrain to talk about the geopolitical climate, the challenges around the world, impacting trade and the way in which we typically conduct business.
Since the dawn of this decade, we have faced one upheaval after another – from the COVID-19 pandemic to intensifying geopolitical tensions and economic turmoil underlaid by social unrest.
These global disruptions reverberate through, and we cannot assume that they are insulated from international trade and commerce relationships. They have reshaped supply chains and oftentimes, fractured business relationships. They impact many industries, and of course, the maritime industry is no exception, given that it is one industry which is literally connected around the world. As law follows business, this in turn impacts maritime arbitration, and dispute resolution in general.
So, in my speech today, I will focus on four areas:

(a) First, outlining some of the global trends and developments affecting the maritime industry around the world and in Singapore;

(b) Second, what has been and will be Singapore’s position in navigating these trends and developments;

(c) Third, focusing a little bit more on arbitration, or more broadly dispute resolution, the impact of these trends and developments on maritime disputes and the resolution of these disputes;

(d) And finally, Singapore’s approach and response to supporting the maritime industry in this area.

III. Global Trends and Developments Affecting Maritime Industry

First, global trends and developments as they impact the maritime industry.

(A) Geopolitical tensions

The top concern amongst many corporates today remains the fast-paced rate at which geopolitical tensions have arisen from every part of the world. Whether you turn on the TV, or you open the newspapers, close to home in Asia, Southeast Asia, further away in Europe, elsewhere in North America, we see these tensions fundamentally altering global trade patterns and reconfiguring global supply chains.
We have now seen supply chains from one that used to be highly globalised, multilateral, based on what is most efficient and perhaps most cost-effective, to one that is increasingly protectionist, based on who is a friend or an ally, making the country less vulnerable. You start to hear, or you have already heard, terms, such as “friend-shoring”, “re-shoring” or “near-shoring” – all of which are different ways of saying how we make sure that we park our assets and deal with other nations which are friendly to us.
For example, the US-China tensions have caused established US companies, such as Apple, Intel, General Motors, to move parts of its operations out of China. They had been operating in China for some time, because of lower cost, and being able to produce in mass at a quick pace, but now they have moved back to the US or one of its allies. Chinese companies in turn shift their own supply chain out of China to other countries, like Southeast Asia.
Related to these geopolitical tensions, or perhaps underlying them, there is a concerning trend of deepening social fractures around the world.

(a) Identity politics has become a lot more pronounced, with people increasingly defining themselves – and dividing themselves – based on lines, such as racial, religious, ethnic, cultural, and ideological.

(b) Social media algorithms and echo chambers have served only to amplify these divisions, making it harder for people to find common ground, harder to find that middle space to engage in civil discourse with people who hold different views.

(c) What we see today is not just disagreement on policies or approaches, but deeply fundamental questioning of shared values and institutions that have long held societies together.

(d) When societies become more insular, more hostile, these fault lines have a deeply negative effect on international commerce and cooperation.
In fact, as one example, these divides between different factions can also trigger changes in shipping routes.

(a) Take for example, to travel between Asia and Europe, global shipping companies have for decades sailed through the Red Sea and the Suez Canal.

(b) Now, because of the Houthi attacks at the Red Sea, many shipping companies have altered. They are diverting their cargo around the Cape of Good Hope at Africa’s southern tip. This is a route that adds 4,000 miles and 10 days to travel, not to mention additional fuel requirements.

(c) In December 2024, the New York Times reported that the cost of shipping a container from Asia to northern Europe went up by 270% in the preceding 12 months, which again accentuates and underscores Mr Chao's point that looking at where we were in 2023, compared to where we now are in 2025, we can see a palpable rise in the tension and the impact of the tension on the work that we do.

(d) Closer to home, in the South China Sea, we are also seeing increased military activities, including more frequent naval exercises, maritime patrols, and territorial assertions.

(e) Some of these, often on occasion, may inadvertently lead to incidents and “accidents”, and trigger national responses. So, all of these add to the tension around the area in which shipping routes ply.

(B) Global inflation

The convergence of these geopolitical tensions, as well as COVID-19's immediate aftermath in the past two years has caused uncertainties, and fuelled global inflation. Conflicts and pandemic-related disruptions have also destabilised markets. This has in turn triggered significant cost increases – from soaring fuel prices and material costs to rising labour expenses and port fees.
These inflationary pressures cast a long shadow over the maritime industry's future development.

(a) It is an industry that is used to, and has to, think and plan and proceed long- term. But these disruptions are causing companies to hesitate to commit to long-term investments today. Investments are needed in shipbuilding and port infrastructure, all of which need a long gestation period, but companies are reluctant to do it because of rising costs and uncertainty.

(b) This reluctance to invest has created a bottleneck effect, with existing facilities struggling to handle trade volumes, resulting in a vicious cycle of congestion, infrastructure limitations, and escalating costs around the maritime supply chain.

(C) Stricter sustainability and environmental regulations

While the industry grapples between forces of geopolitical tensions, rising costs as well as inflation, it also has to deal with mounting regulatory challenges, particularly on the environmental front.
Regional and national laws have become stricter, creating compliance challenges for shipowners operating in multiple and different jurisdictions.

(a) For example, the International Maritime Organization (IMO) has introduced stringent rules, aimed at significantly curbing greenhouse gas emissions.

(b) In January 2024, the EU Emissions Trading System was extended to maritime transport, covering carbon dioxide emissions from all large ships entering EU ports.

(c) More recently, in January this year, the FuelEU Maritime Regulation came into effect, imposing regulations and requirements on the greenhouse gas intensity of ships trading within the EU or the European Economic Area.
All of these add a compliance burden, and of course, additional costs on shipping companies.
The various multiple forces - geopolitical tensions, deepening social fractures, economic pressures, environmental regulations have created what some call a "polycrisis". A crisis that is polycentric and multi-faceted. We are no longer dealing with isolated challenges that can be addressed one at a time.
For the maritime industry, which has always been at the intersection of global trade flows, these developments are not just blips or trends in a particular segment or point in time, but represent quite serious fundamental paradigm shifts that will require a whole of industry strategic response.

IV. Singapore’s Overarching Position
This brings me to Singapore's position amidst these challenging times, looking at how we can contribute constructively to maintaining stability and progress in our own way as a small country, playing a part in this interconnected world.
Let me start with a few non-negotiable overarching principles for Singapore.
For us, a strong rule of law has been the cornerstone of the Singapore model – from everything that we have done since independence. It is non-negotiable if we are to maintain a stable society and a vibrant economy. That is why we take principled and consistent positions, as opposed to taking sides.

(a) For instance, we took a strong stand against Russia’s invasion of Ukraine, because we chose to uphold a key principle that corresponds to our very own long-term national interest, i.e. sovereignty and territorial integrity.

(b) We took a similar position against the US, when the US invaded Grenada in the 1980s, even though at that time, the US was, and remains today, one of our largest investors and trading partners.
Although we are small as a country, we seek nonetheless to contribute constructively on the world stage. For instance, Singapore has played a key role in the UN Convention on International Settlement Agreements Resulting from Mediation. We also played a key part in the UN Convention on the Law of the Sea for the conservation and sustainable use of marine biodiversity in areas beyond national jurisdiction.
We want to and we need to stay relevant to the world, and we can only do so if we remain successful as a country – economically, as well as socially.
Therefore, for us, one key principle is to think, plan and execute for the long term. In some ways, in a world that is increasingly changing at a fast pace, keeping hold of the constant, and keeping hold of things that have worked for us in the past, might perhaps be the best strategy – anchoring on the rule of law, ensuring that we remain open to the world, playing a part on the world stage, and going back to fundamentals, which is to think long-term and plan for Singapore long-term.
Let me give you a couple of examples in our major infrastructure investments for the long-term:

(a) We launched plans for the ‘Long Island’. A couple of years ago, we spoke about it. It is our plan to deal with rising sea levels, which will hit us not today, tomorrow, or even in the next one or two decades, but 30 years and beyond. But we think today – what do we need to do to plan for Long Island? How do we think about the construction of Long Island? What is the impact of Long Island on the east coast of Singapore, and what might we put on Long Island to make it sustainable?

(b) We planned for and started the construction of Changi Airport Terminal 5 recently. T5 will be larger than Terminals 1 to 4 combined. Do we need that today? Probably not. But how do we cement Singapore’s position as the leading aviation hub in the region, if not the world? It is to ensure that we remain not just better than our competition, but that we remain better than ourselves.

(c) Tuas Mega Port. When fully operational in the 2040s, the Tuas Mega Port will be the world's largest fully automated container terminal. It will be capable of handling up to 65 million TEUs annually. This figure is about double of our current capacity. Again, not something we will need for the foreseeable future, but if we want to ensure that the maritime industry remains one of our key pillars of our society and our economy, then we need to start making these investments today. Today’s planning and budget will have an impact that will be felt several generations downstream.

V. Importance of Maritime Industry to Singapore
Let me turn now to focus a little bit more in detail on the maritime industry, one which is really very important to Singapore – in fact, for those of you not so familiar with Singapore, since the 1300s, well prior to our independence, when Singapore was an active trading place, through to the 1800s, 1900s, when Singapore was developed as a free port and entrepot under the British rule, and now, when Singapore remains a key maritime centre.
Today, Singapore is the world’s busiest container transshipment port. It is the top maritime centre in the Xinhua-Baltic International Shipping Centre Development Index for the 11^th consecutive year, and it remains the top bunkering port.
The maritime industry, as you can see, is very much a part of Singapore’s DNA. Singapore is small, but we remain an open economy. We are an island after all, where trade is our lifeblood – our external trade is more than three times the size of our GDP, which really tells you how important being open is to Singapore. The maritime industry, being one of the key sectors facilitating this trade today, contributes about 7% of our GDP, and about 170,000 jobs.
So, we are committed to meeting both immediate and long-term needs of the maritime industry. Indeed, we need, and we must, confront all the challenges that I have set out earlier.
At the recent Committee of Supply debates, my colleagues at the Ministry of Transport shared some plans as to what they have in mind, looking at future challenges, such as climate change and technological developments, and to overcome our land, labour, as well as our carbon constraints – all of which play a significant role and are challenges that we need to deal with as a small nation.
My colleagues have also outlined some plans, to ensure that Singapore will continue to maintain our competitive edge, including:

(a) Taking advantage of AI to streamline port clearances, handling more capacity in a faster pace;

(b) Expanding maritime innovation testbeds and regulatory sandboxes to enable provision of new maritime services;

(c) Developing future fuels; and

(d) Most importantly, investing in our people, ensuring that for all the hardware that we build and all the technology that we use, we have the best software to operate Singapore.
At my ministry, MinLaw, we are also doing our part to support the maritime industry. We aim to help enterprises who choose to transact in, from or through Singapore.
Entities must be able to trust in the system. This has helped us, because today, corporate businesses have located their HQs here. They are able to transact confidently, knowing that they are protected by strong rule of law, to be able to resolve their disputes that will inevitably arise fairly, efficiently, transparently, cost-effectively.
We want to provide them with legal certainty in this uncertain world. We need them to know that if you come into Singapore, there will be a clear framework of governance. You will be able to transact, and most importantly, there will be predictability in terms of what you can apply for, what you can get, the kinds of grants that will be available to you, as well as should there be a dispute, the manner in which this will be resolved will be clear, transparent and predictable.

VI. Singapore’s Approach and Response to Supporting Maritime Disputes
The trends that I described earlier are already reshaping maritime arbitration in significant ways. I am sure over the course of the panels today, you will discuss that in more detail. Disputes have become more frequent and complex. New types of disputes have arisen, and the increasing use of technology has also changed how evidence can be gathered.
As a result, the resolution of these disputes has also become more involved.
We probably cannot go back to how it was in the past, in the 18^th century, where merchants resolved disputes by coming together, gathering at establishments which are now well-known institutions, such as Lloyd's or the Baltic Exchange, and talked about their disputes, argued a little over cocktails, before an experienced shipbroker who sometimes acted as an informal arbitrator or as a mediator.
But there is today, a more systematic process, with rules like the SCMA Rules, to guide the arbitration process.
Our philosophy in Singapore has been to develop it to meet the needs of our users, as far as possible – not just based on theoretical concepts, but based on what the industry needs.
To be plugged into what the industry needs in a very quick, fast-changing, evolving world, we need to consult and be tapped into the industry widely.
At MinLaw, we meet with the legal and business community regularly, to understand what they need. What are the issues they face in resolving disputes in Singapore? What improvements can we make, to make the process easier, cheaper, faster, smoother and more efficient?
We meet them, not just in Singapore, but overseas. Why? Because it is important to understand how users see Singapore from the outside, not just how we see ourselves from the inside.
For example, I just came back from Hong Kong last week, where I attended and spoke at the INSOL Conference. I took the opportunity to meet with practitioners there – insolvency professionals, private equity funds and distressed debt funds that operated in North Asia.
While the focus was on restructuring and insolvency, this is also an area that is important for maritime and shipping companies. I remember the time when I was in practice together with Corina. She did shipping, and I did restructuring. But we came together a lot because, as you might remember, in the early 2010s, we had many large restructuring cases in the maritime industry because of the volatility, changing prices, changing charter party prices and so on, but it was a fundamentally viable business. It had suffered short-term cashflow difficulties, which caused a serious pressure on the company, and we solved it with many successful restructurings. Therefore, the restructuring regime that we have in Singapore will play a part in the maritime industry.
For example, you might have heard of the restructuring of the Pacific International Lines (PIL) – one of the sponsors of this SCMA Conference, and also one of the top 12 container shipping lines in the world today. Their US$3.3 billion restructuring, which took place in 2021 involved a US$1.1 billion pre-packaged scheme of arrangement, as well as an out-of-court restructuring of its remaining debt – all of which were completed under four months because of the framework that we have introduced – allowing us to use pre-packed arrangements, bringing in what is known as the US Chapter 11 concepts.
This was possible because we updated our restructuring regime, based on feedback from the users who told us in the mid-2010s that we wanted to graft onto our system something that allows users options beyond the traditional UK scheme of arrangement. So, we studied this, and we brought the US Chapter 11 into our books around 2018, and that was one successful outcome.

(A) Open regime and diverse choices

But the point I want to make is that it is important to give users the choice that they wish to have, in relation to: the governing law, the counsel, the dispute resolution mechanism – whether it is arbitration or litigation before the Courts or the Singapore International Commercial Court (SICC), or mediation, or a combination, expert arbitrators and mediators, as well as the seat and venue.
Take our arbitration regime, for instance. In the early 1990s, when I first started practice, there were restrictions, and foreign lawyers had to partner with a Singapore-qualified lawyer for arbitrations seated in Singapore.
We have moved substantially away from that. Today, after 2008, we have allowed foreign law firms, to participate whenever an arbitration is contemplated. So, we moved gradually from not allowing foreign firms to practise arbitration on their own, to a scenario where they could come in when the arbitration is commenced, when a notice is issued, to a scenario today when the moment arbitration is contemplated, even before the formalities have been commenced.
Today, the foreign practitioners are an integral part of our legal industry in Singapore. There are about 140 foreign law firms, and about 1,400 foreign lawyers in Singapore. They complement our strong core of local law firms and lawyers well. A good number of them have a strong arbitration practice here as well.
We also attract leading international institutions into Singapore. We think that is important. We want to anchor thought leadership in this space in Singapore. Besides our flagship arbitral institutions – Singapore International Arbitration Centre (SIAC) and SCMA, Singapore is also home to many other international institutions, such as the ICC Court of Arbitration, the Permanent Court of Arbitration, the American Arbitration Association International Centre for Dispute Resolution, and the WIPO Arbitration and Mediation Centre, among others.
All these institutions have eminent arbitrators from both common law and civil law jurisdictions on their panels, serving the users in Singapore. So, you have a choice - if you want to do arbitrations under any of these institutions, take your pick – civil law or common law; if you want to go before the Courts or the SICC, again, we have a range of International Judges on the SICC from the common law and civil law jurisdictions.

(B) World-class infrastructure

In terms of infrastructure, you can see that Maxwell Chambers has a purpose-built facility that also provides state-of-the-art hearing facilities, providing users with a seamless experience.
Maxwell Chambers has recently introduced innovative technological solutions, like drones and virtual reality displays, which will be useful for remote vessel inspections and site surveys. I used to hear Corina tell me stories of how she used to climb on board a vessel, take evidence, take statements. A lot of that now can be ameliorated with technology.

(C) Progressive laws

We also regularly review and update our laws, to ensure we remain up to speed and take on board the best learnings and developments from the various jurisdictions around the world, to ensure that we remain responsive to industry needs and international developments.
Our International Arbitration Act, for example, draws heavily from the UNCITRAL Model Law on International Commercial Arbitration, because that is what international businesses are familiar with. So, we model our own domestic legislation that applies to international arbitrations based on and anchored on a set of rules that the majority of the international business community will be familiar with.
But at the same time, we have not remained static.
We have enacted this piece of legislation more than 30 years ago in 1994, but it has already been amended in Parliament 11 times. We are now embarking on another wide-ranging review of the Act. In fact, we just launched a consultation to ensure that we continue to support Singapore’s position as an attractive forum for arbitration.
We are looking at issues such as the court’s powers to make costs orders. We are also consulting on setting aside applications, as well as how the governing law of the arbitration agreement should be ascertained.
These are issues which I grappled with when I was in school many years ago. But today, because of changes in the environment around the world, changes in legal development, we take the opportunity to relook at these principles and think about whether changes need to be made for Singapore.
Partly as a result of these efforts and partly because, in some ways, we have been lucky because of our geopolitical location and posture,

(a) Singapore is now the most preferred seat of arbitration in the world, alongside London.

(b) SIAC is now the second most preferred arbitral institution in the world. More than 90% of their cases are international in nature, from more than 100 jurisdictions. Later this evening, they will be announcing their 2024 caseload statistics, and I am given to understand that they continue to look healthy.

(c) Likewise, as you have heard from Mr Chao earlier, SCMA reported a record 95 case references last year. Again, what is significant for me, when you look at these cases, is not just about the number but that these cases covered a wide range of disputes, and more importantly, with parties both from Singapore, as well as from outside Singapore, from around the world – Asia, Latin America and Africa. This underscores the global reach and impact that SCMA has been making.
That is in arbitration.
10, 11 years ago, driven by the same principle as when we started arbitration in the early 90s, we started to look at alternatives. What about mediation? There is value in mediation because it saves time, it is cheaper, and it continues to maintain the parties’ relationships. After all, it is fundamentally deeply rooted in traditional Asian values - to try to find a face-saving way of resolving disputes without going public and having a binary outcome where one side wins and the other loses.
So, we started thinking about how we could impact global international dispute resolution using mediation. We set up SIMC, to offer other options. We started the Singapore International Mediation Centre (SIMC) in 2014, ahead of the Singapore Convention on Mediation (SCM). At that time, international commercial mediation was not prevalent, at least not in this part of the world.
But it quickly gained traction as a viable alternative modality of dispute resolution, after the SCM entered into force in 2020, giving teeth to mediated settlement agreements. Today, we have 57 signatories and 17 Parties to the SCM. Not bad, given that in the last 5-6 years, we have had COVID. Every time I travel, when I see my counterparts in other parts of the world, especially the big economies, I strongly encourage them to sign up to this Convention, because the more countries there are, the more parties there will be, and the more likely it is that our business practitioners will use them.

(D) International partnerships

Whilst we continue to strengthen our capabilities, we recognise that success in this global and evolving landscape will require strong partnerships with other countries.
That is why, as I said at the outset, we look at Singapore with an open posture. At the government level, we continue to look at strengthening our legal and dispute resolution cooperation with other countries and cities.
Last year, MinLaw signed MOUs with Saudi Arabia, India and Kazakhstan. These MOUs serve to not just anchor our legal systems together, but also to exchange information, share expertise, and have a strong pipeline for people-to-people exchanges. Because it is not just important to understand a different legal jurisdiction, but to also understand the different cultural context and nuance in which that business environment operates.
For instance, under the MOU with India, we have agreed to work together to facilitate, hold and organise events such as on international commercial dispute resolution, and also find ways to promote alternative dispute resolution (ADR).
Similarly, our institutions cooperate with their counterparts, because we need to establish links at all levels – not just on a Government-to-Government level – but also with the different leaders across the sector. For example, at the last Singapore-Shanghai Comprehensive Cooperation Council meeting that I co-chair with the Shanghai Mayor Gong Zheng, SCMA was present and signed MOUs with the Shanghai Maritime University and the Shanghai International Arbitration Centre, to nurture the next generation of maritime lawyers.

(E) International conferences

Besides bilateral cooperation, we also believe it is important for industry players from around the world to come together, multilaterally, to discuss and exchange ideas.
This Conference is one good example. At conferences like this, it is not just about what you learn from speeches, what you gather from panels, but also about the contacts that you build, the relations that you form within the industry, which will be invaluable.
So, as I conclude, let me just make one final plug for SCMA. They will be organising the International Congress of Maritime Arbitrators XXIII, held in Singapore next year. This is a really prestigious global event that brings together the top maritime arbitrators, lawyers, academics and many other industry professionals, and it will be coming back to Singapore for the first time since 2007. My warmest congratulations to SCMA for winning this bid – it must not have been easy, but I think the value proposition for SCMA has stood out.
Later this year, MinLaw will again be organising the Singapore Convention Week – a week of conferences, and also, more importantly as I said, the after-conferences too. We can no longer settle disputes over cocktails, like I showed you earlier, but I think the cocktails will still help in building a network and relationship. So, we warmly welcome you to join us, if your schedule permits, to take part in the Singapore Convention Week.

VII. Conclusion
As I conclude, let me just stress that what I have set out to paint is not all doom and gloom. This is the world we live in. These are some of the issues that we cannot, as a small country, control. But we can do a lot from within what we have in Singapore. We can control our own position here. And I've given you some examples too – with Changi, with Tuas Mega Port, with Long Island, and other innovations outside of the maritime sector as well.
A lot of it really relies on the fact that we've got good thought leadership here, building strong networks of people-to-people relations, having people outside Singapore come in and interact with us, keeping our posture very open, welcoming foreign lawyers into our midst, with practitioners coming into Singapore – as I said, in, from or through Singapore.
With this, let me once again wish all of you a very successful session today. If you forget everything that I have said in last 20 minutes or so, I just want you to remember that for Singapore, the maritime industry is a key part of our economy, is a key part of our DNA, and we will remain committed to supporting the maritime industry and its practitioners to meet the challenges ahead, and there will be many. We will remain at the side of the maritime industry, supporting its development and its growth in this difficult, turbulent, troubled world.
Thank you very much.

Last updated on 25 March 2025