19 November 2024

Singapore: International Trade and Doing Business

November 19, 2024

BRACE Law Firm ©

In the mid-1960s, Singapore was a typical Asian country plagued by unemployment, ethnic unrest, corruption, and crime. Nearly two-thirds of the city's population lived in slums, and the GDP per capita was less than 320 US dollars. [1]

Singapore achieved rapid economic development in recent decades, driven not only by its favorable location and long-term political stability but also by its commitment to an open-world strategy. Currently, the Republic of Singapore is rightfully considered one of the most developed states in Southeast Asia. The country has one of the highest GDP per capita rates in the world, which the IMF estimated at 133,108 US dollars in 2023. [2]

A lack of familiarity between Russian and Singaporean companies regarding each other's market conditions, coupled with a lack of connections and information, hinders cooperation in foreign trade.

Structure of Singapore's Foreign Trade

The Singaporean economy is based on electronics, petrochemicals, trade, finance, and business services. The agricultural sector is virtually non-existent, except for the cultivation of orchids, vegetables, and aquarium fish. Its contribution to GDP is negligible, although the country intends to increase food sustainability by developing a new aquaculture hub. Approximately one percent of Singapore's total land area is allocated for agricultural activities. The agri-food sector primarily focuses on producing eggs, seafood, and vegetables to meet local consumption needs. The industry includes 150 land-based food farms and 110 sea-based farms. Singapore has no mineral resources. The Singaporean economy is highly industrialized. The industrial sector accounts for 24.9% of GDP and employs more than 15% of the active population. Electronics and petrochemicals dominate the industry, which also includes biomedical sciences, logistics, and transport engineering. Electronics is Singapore's largest manufacturing industry, accounting for approximately 20% of total output. The electronics sector is known for its production of semiconductors, integrated circuits, and other electronic components. [3]

The service sector generates more than 70.9% of GDP and employs over 85% of the active population. It is dominated by trade, business services, transport, communications, and financial services. As a regional commercial hub, the Port of Singapore is one of the most important in the world. it ranks second in total container transshipment volume after Hong Kong. [4]

Singapore's total trade turnover in 2023 amounted to 1.2 trillion Singapore dollars, of which exports accounted for 638.4 billion Singapore dollars and imports totaled 567.3 billion Singapore dollars. [5]

Singapore's main export items are integrated circuits, refined petroleum, specialized machinery, gold, and gas turbines. Exports are primarily directed to Hong Kong, China, Malaysia, the US, and Indonesia.

Singapore's main import items are integrated circuits, refined petroleum, crude petroleum, gold, and specialized machinery. Imports primarily originate from China, Malaysia, the US, South Korea, and Japan. [6]

Foreign Trade Between Russia and Singapore

Statistical data for Russia's trade turnover with Singapore is available for 2021, during which Russia's trade turnover with Singapore amounted to 2,271,351,598 US dollars, representing a 35.16% increase compared to 2020. Russia's exports to Singapore in 2021 totaled 1,670,167,082 US dollars, while Russia's imports from Singapore amounted to 601,184,516 US dollars. [7]

Singapore's share in Russia's foreign trade turnover in 2021 was 0.2893%, compared to 0.2960% in 2020. Based on its share in Russian trade turnover, Singapore ranked 53rd in 2021 (the same as in 2020). Singapore's share in Russian exports in 2021 was 0.3398%, compared to 0.3433% in 2020. In terms of its share in Russian exports, Singapore ranked 50th in 2021 (compared to 48th in 2020). Singapore's share in Russian imports in 2021 was 0.2049%, compared to 0.2272% in 2020. Based on its share in Russian imports, Singapore ranked 53rd in 2021 (compared to 51st in 2020). [8]

In the structure of Russia's exports to Singapore in 2021, the main share of supplies consisted of the following types of goods:

mineral products (Commodity Nomenclature of Foreign Economic Activity (the "TN VED") codes 25-27);
machinery, equipment, and vehicles (TN VED codes 84-90);
metals and products made from them (TN VED codes 72-83);
chemical industry products (TN VED codes 28-40).

In the structure of Russia's imports from Singapore in 2021, the main share of supplies consisted of the following types of goods:

machinery, equipment, and vehicles (TN VED codes 84-90);
chemical industry products (TN VED codes 28-40);
food products and agricultural raw materials (TN VED codes 01-24);
metals and products made from them (TN VED codes 72-83);
mineral products (TN VED codes 25-27). [9]

Singapore's Sanctions Against Russia

In March 2022, Singapore announced the imposition of unilateral sanctions against Russia.

Export restrictions were introduced on the supply of military and dual-use goods (electronics, computers, telecommunications equipment). Measures were adopted prohibiting Singaporean financial institutions from entering into transactions or establishing business relationships with several Russian banks, or providing assistance and financial services for the benefit of the Russian Government, the Bank of Russia, and their affiliated legal entities.

Russia added Singapore to the list of states committing unfriendly actions against it and to the "blacklist" of countries implementing policies that contradict its spiritual and moral values.

Between 2019 and 2021, supplies of electrical equipment to Russia averaged 225 million dollars per year, or approximately 43 percent of Singapore's total exports to Russia. Following the imposition of anti-Russian sanctions, direct supplies to Russia virtually ceased.

Purchase volumes decreased to 40 million and 16 million US dollars in 2022 and 2023, respectively. Meanwhile, the continued export of electronic products to Russia resulted in secondary sanctions against several Singaporean companies by the US. GREDSTONE PTE LTD was added to the US Treasury's "blacklist" in August 2024 on charges of facilitating payments for the purchase of sensitive equipment intended for the Main Directorate of Deep-Sea Research of the Russian Ministry of Defense. [10]

Nevertheless, despite the decrease in trade turnover between the two countries, there has been an increase in the export of mineral raw materials to Singapore. In 2023, the export of these products to Singapore increased 2.5 times compared to the previous year (from 1.3 to 3.4 billion US dollars), significantly exceeding the pre-sanction figures. Due specifically to the increase in Russian oil supplies, Singapore became Russia's largest trading partner among ASEAN member states. [11]

International Agreements Between Singapore and Russia

Currently, the following international agreements are in effect between Russia and Singapore:

Agreement between the Government of the Russian Federation and the Government of the Republic of Singapore on the Promotion and Reciprocal Protection of Investments, concluded in Singapore on September 27, 2010;
Agreement between the Government of the Russian Federation and the Government of the Republic of Singapore dated September 9, 2002, On the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.

However, it should be noted that by Decree of the President of Russia No. 585 dated August 8, 2023, as well as Federal Law No. 598-FZ dated December 19, 2023, the operation of the provisions of Articles 5–22 and 24 of the Agreement on the Avoidance of Double Taxation, as well as paragraphs 3.1–7 of the Protocol thereto, has been suspended.

Furthermore, a Free Trade Agreement was signed between the Eurasian Economic Union (the "EAEU") and Singapore on October 1, 2019. The package of agreements on a comprehensive free trade area between EAEU countries and the Republic of Singapore includes:

The Framework Agreement on Comprehensive Economic Cooperation between the EAEU and its Member States, of the one part, and the Republic of Singapore, of the other part;
The Free Trade Agreement between the EAEU and the Republic of Singapore;
Five bilateral agreements of EAEU member states on trade in services and investments.

However, the Free Trade Agreement between the EAEU and the Republic of Singapore has not entered into force. Negotiations on the draft agreement on trade in services and investments between the Russian Federation and the Republic of Singapore have not been completed. [12] Currently, only Armenia and Kazakhstan have ratified the bilateral agreements. Russia is working on a bilateral agreement on trade in services and investments with Singapore, but the ratification process may take years, especially considering that the state is on the list of unfriendly nations. [13]

Import and Export Restrictions in Russia and Singapore

With a population of 5.7 million people, the Republic of Singapore annually imports more than 13.5 billion US dollars worth of agricultural products. Due to its limited territory, the city-state meets only 10% of its demand for food and agricultural products through domestic production, while the remaining 90% is imported from 170 countries worldwide. [14]

Singapore does not impose quota restrictions, and most goods can be imported freely.

However, some goods are prohibited from being imported. These include chewing gum — except for chewing gum imported under the US-Singapore Free Trade Agreement, which is sold only by prescription — chewing tobacco and imitation tobacco products, pistol- or revolver-shaped lighters, firecrackers, controlled drugs and psychotropic substances, and endangered species of wildlife. [15]

Certain products require special import licenses. These include:

animals, birds, and their by-products; plants;
meat and meat products; fish and seafood;
fruits and vegetables; weapons and explosives;
bulletproof clothing; toy guns, pistols, and revolvers;
other weapons; pre-recorded audio cassettes; newspapers, books, and magazines;
films, video cassettes/discs, laser discs, video games;
telecommunications and radio communication equipment;
toy walkie-talkies; medicines; pharmaceuticals, and poisons.

In Singapore, imported food products, medicines, alcoholic beverages, paints, and solvents must meet specific labeling requirements. Manufacturers are required to provide information on the composition, country of origin, and the name and address of the manufacturer or supplier. [16]

Before importing goods from Singapore into the customs territory of the EAEU, it is necessary to study the acts regulating the import of goods, such as Decision of the Board of the Eurasian Economic Commission No. 30 dated April 21, 2015, On Measures of Non-Tariff Regulation, which establishes a list of goods prohibited for import into the customs territory of the EAEU. Restrictions on import may also be imposed due to the spread of certain diseases, such as monkeypox, peste des petits ruminants, etc.

Legal Due Diligence of a Singaporean Company: How to Verify a Legal Entity in Singapore?

The Register of Companies in Singapore is maintained by the Accounting and Corporate Regulatory Authority (the "ACRA"). The agency's website is located at acra.gov.sg, but the company register itself belongs to the Bizfile system and is located at bizfile.gov.sg. It is here that one can order and obtain an extract for a Singaporean company from the register online.

The following organizational and legal forms of business registration are permitted in the Republic of Singapore:

sole proprietorship;
partnership;
limited liability partnership;
company;
business trust. [17]

In accordance with the Companies Act of 1967, [18] the following types of companies may be registered in Singapore:

public companies limited by shares;
public companies limited by guarantee;
public companies unlimited with share capital;
private companies limited by shares;
private companies unlimited with share capital;
exempt private companies limited by shares;
exempt private companies unlimited with share capital.

A company may be registered as a private company if its articles of association or memorandum of association restrict the rights of the company's members to transfer shares owned by them and limit the number of members to 50 persons.

An exempt company refers to a company with no more than 20 shareholders, provided that none of them is a legal entity. An exempt company registered in the Republic of Singapore is exempt from filing financial statements with ACRA if the company's turnover is less than 5 million Singapore dollars for the tax year. Other types of companies must submit financial statements to the ACRA archive annually.

The name of a limited liability company must include the words "Limited" ("Ltd.") or "Berhad" ("Bhd."). If the company is private, the words "Private" ("Pte.") or "Sendirian" ("Sdn.") must be inserted before "Limited" or "Berhad," respectively. If the company is a private unlimited company, the words "Private" ("Pte.") or "Sendirian" ("Sdn.") are indicated at the end of the company's name. [19]

Before registering any commercial organization in the Republic of Singapore, its name must be approved. When choosing a company name, the following general rules must be followed:

the company name must not be identical or similar to the name of another commercial organization;
the company name must not infringe on rights to registered trademarks or patents;
the company name must not be vulgar or offensive to any extent.

When conducting foreign trade with a foreign partner, it is important to perform a preliminary verification before entering into transactions. This is because some companies may prove unreliable and fail to perform their obligations properly. Furthermore, your prospective partner's business may turn out to be fraudulent or intend to use transactions as a means of money laundering or other illegal activities. This can lead to serious economic and reputational losses for your business.

Basic information about any Singaporean company is available in the ACRA directory free of charge. The available information includes the following data: [20]

the full name of the legal entity;
the unique entity number (UEN);
the status of the economic entity (e.g., live, struck off, liquidated, or terminated);
the legal address. A company must have a registered office in Singapore. This office must be open to the public for at least three hours during each business day. Additionally, when filing an application with ACRA to incorporate a company, the memorandum and articles of association must be accompanied by a notice in the prescribed form regarding the location of the registered office and the days and hours when said office is open and accessible to the public. Any changes to this information after the company's creation must be reported within 14 days. Such notice is not required if the company office is open for at least 5 hours on normal business days. [21]
the type of activity the enterprise is officially engaged in;
the date of the last filing of annual and financial statements.

For a fee, more detailed information (Business Profile) regarding a company can be obtained from the ACRA register: [22]

the date of registration of the legal entity;
the unique entity number (UEN), which also serves as the tax number in Singapore;
previous names, if any were used;
declared types of activities — the two primary activities are listed;
the registered office address;
information regarding officers (directors, secretary) and owners (shareholders). This information includes the surname, name, type and number of identification documents, and the specified residential address. A Singaporean company may have one or more directors, who may be either residents or non-residents of the Republic of Singapore. The minimum requirement is one director. Only a natural person may serve as a director of a Singaporean company. At least one of the directors must be a resident of Singapore, i.e., a citizen of the Republic of Singapore or a person residing in the Republic of Singapore on a permanent basis. A foreign citizen with a valid employment permit may also serve as a resident director. [23]
information on the amount of paid-up capital;
the dates of the last annual general meeting and the date of the closed financial period.

If you are interested in data regarding the financial condition of an enterprise, you can purchase a Corporate Compliance and Financial Profile for that enterprise. This is available for companies that have financial data for at least the last two years. Such a document includes:

business profile information (similar to the Business Profile described above);
a financial profile based on comparative data for three years;
financial ratios;
audit reports (if the reports were subject to audit);
the company's financial statements. [24]

If there are suspicions that a company has been declared insolvent, a check can be performed through the website of the Singapore Ministry of Law. This registry includes companies against which civil lawsuits have been filed due to default and a corresponding court decision has been made. This resource also includes companies subject to compulsory liquidation. [25]

You can also check if an enterprise is on the lists of the Consumers Association of Singapore (CASE). This list identifies firms for which there is confirmed information regarding unfair practices against consumers, i.e., information on companies about which the Consumers Association has received various complaints, including for default and consumer deception. The list can be viewed on the official website. [26]

Concluding a Contract with a Singaporean Company

Contract law in Singapore is largely based on the English common law of contract. The rules developed in Singaporean courts bear a very close resemblance to the rules developed under English common law. Following independence in 1965, the Parliament of Singapore made no attempts to codify Singaporean contract law. Accordingly, most of the contract law in Singapore remains in the form of judge-made rules. [27]

In Singapore, a contract is considered valid if it is concluded by a competent party. If companies enter into a relationship by signing a document, it is presumed that they have expressed an intent and desire to be legally bound. If the parties' agreements are not formalised in writing, Singaporean courts determine the parties' intent to be legally bound by examining and evaluating the statements, actions, and conduct of the parties within the framework of their relationship. [28]

According to Singaporean law, a contract is concluded only if:

a party makes an "offer" to purchase a good or service;
the other party or parties accept this offer;
payment/consideration is exchanged between the parties. [29]

For an offer to be considered such in the legal sense, it must express or imply a promise to be bound by such offer, rather than being a mere invitation to treat.

The material terms of a contract must be stated with sufficient certainty for the contract to be considered enforceable. As a general rule, the material terms of a contract under Singaporean law are the subject matter and price; in some cases, for supply contracts, the delivery period is also a material term. [30]

When a contract is in writing, the parol evidence rule applies, which establishes that only the terms of the contract itself apply to the parties' relationship. All agreements reached during negotiations, as well as other oral and written agreements reached prior to the conclusion of the contract, do not apply to the parties' relationship under the concluded agreement.

When interpreting contract terms, the court evaluates disputed terms from the perspective of how an ordinary reasonable person would perceive them and does not take into account the understanding that a party to the contract or both parties attributed to the relevant term.

In some cases, a contract term is implied by law. For example, the Sale of Goods Act 1979 establishes a requirement that every contract of sale implies the seller's right to sell the goods.

When limiting a party's liability under a contract, the rule of fairness applies. The Unfair Contract Terms Act 1977 applies to terms that affect liability for breach of obligations arising from business activities. Contractual provisions regarding exclusions of liability are either entirely void or become so unless it is proven that they satisfy the requirement of reasonableness.

When considering the issue of excluding liability, courts generally take into account the following factors:

the bargaining positions of the parties and their intent to agree to such a clause;
whether the buyer had an incentive to agree to terms limiting/excluding liability;
whether the buyer knew or should have known about the existence and scope of the relevant terms;
the party's ability to protect itself from liability.

Terms that attempt to exclude or limit a party's liability for death or personal injury caused by the party's negligence are completely void, while terms that seek to exclude or limit liability for negligence resulting in damage other than death or personal injury, as well as clauses that exclude or limit contractual liability, are subject to the requirement of reasonableness. The reasonableness of an exclusion provision is evaluated as of the time the contract was concluded. Thus, the actual consequences of the breach are, at least theoretically, immaterial to the case.

If a misunderstanding by the parties regarding a less important term occurs, the court will attempt to find a proper balance between protecting a party from misunderstanding and meeting the other party's expectations regarding the contract. However, if a contract was signed by a party "without reading," that party will not be able to subsequently claim a misunderstanding of the contract terms, as the law expects the party to have familiarized itself with the contract.

The widely recognized principle of the invalidity of a contract concluded under duress (e.g., concluding a contract under threat) applies in Singapore. Undue influence is also considered a form of duress. Undue influence is a more subtle form of duress where one party dominates the other and undermines their independence. Some relationships are presumed to exert undue influence, such as the affiliation of persons.

A contract may also be declared invalid if it is unconscionable, i.e., extremely unfair due to the unequal bargaining positions of the parties at the time the contract was concluded.

A breach of contract occurs when a party to the contract:

expressly or impliedly refuses to perform the terms of the contract;
places themselves in a position where they can no longer perform their obligations in accordance with the terms of the contract; or
fails to perform obligations in accordance with the terms of the contract within the established timeframe, whether it be a complete failure to perform the obligation or improper performance thereof.

In the event of a breach of contract, the aggrieved party is not provided an automatic legal right to treat the contract as discharged and terminate it. If the breach is a repudiatory breach, the party whose rights are violated may elect to terminate the contract.

A breach is considered repudiatory if:

one of the parties, through its words or conduct, clearly states to the other party to the contract that it will not perform its contractual obligations at all;
a breach of a term occurred which the parties identified as so important that any breach gives the aggrieved party the right to terminate the contract;
when a breach, described as a material breach, deprives the aggrieved party of the entire benefit of the contract.

The burden of proof that a breach of contract occurred lies with the party asserting the breach.

The court may order the party that breached the contract to pay the aggrieved party for any financial losses incurred as a result of such breach. Damages of this type are called contract damages. When calculating damages under a contract, the court compensates the aggrieved party with the monetary amount it would have received if the breach had not occurred. This may include the contract amount and consequential damages. Alternatively, the court may compensate the amount the aggrieved party spent in reliance on the contract.

Losses that the aggrieved party was able to avoid by taking measures to minimize them are not subject to compensation. Losses that the aggrieved party could have mitigated by taking reasonable steps to do so but failed to take are also not subject to compensation. This is done to encourage mitigation of losses by the aggrieved party and to prompt it to take all reasonable measures to minimize its damages. If, while taking objectively reasonable mitigation measures, the aggrieved party incurs greater losses than if no such measures had been taken at all, such increased losses will be recoverable from the party that committed the breach of contract.

Losses that are too remote are not subject to compensation. Losses arising in the ordinary course of things as a result of a breach are not too remote and are subject to compensation.

Does the Vienna Convention Apply to a Transaction Between Companies from Russia and Singapore?

Singapore, along with Russia, is a party to the United Nations Convention on Contracts for the International Sale of Goods of 1980 (the "Vienna Convention") and is now bound by it under international law. Singapore also passed a law making the Vienna Convention part of Singaporean law—the Sale of Goods (United Nations Convention) Act 1995. [31] The Vienna Convention entered into force for Singapore on March 1, 1996.

Since the Vienna Convention applies in cases where both parties to a contract of sale have their places of business in different states that are both Contracting States, companies from Russia and Singapore may specify it as the applicable law in their contract.

Even if both parties are from contracting states, they can still choose to be governed by the national laws of Russia or Singapore, excluding the Vienna Convention, as Article 6 allows the parties to exclude the application of the Vienna Convention in whole or in part.

Judicial Disputes with Companies from Singapore

The primary methods of dispute resolution in Singapore are litigation in a state court, independent arbitration, and mediation. In the case of litigation, civil proceedings may be initiated in either the Supreme Court or the state courts, depending on the claim amount.

Building on Singapore's reputation as a country with a world-class judicial system renowned for its efficiency, competence, and integrity, the Singapore International Commercial Court (SICC) was established specifically to provide parties with an avenue for resolving international commercial disputes. The SICC offers parties an efficient dispute resolution process heard by a panel of experienced judges, consisting of specialized commercial judges from Singapore and international judges from both civil and common law backgrounds.

The Supreme Court of Singapore consists of the Court of Appeal and the High Court, which includes the General Division of the High Court and the Appellate Division of the High Court. The Singapore International Commercial Court is part of the General Division of the High Court of Singapore.

The state courts consist of District Courts, Magistrate Courts, Coroners' Courts, Small Claims Tribunals, Community Disputes Resolution Tribunals, and Employment Claims Tribunals. The jurisdiction of each court depends on the amount and/or nature of the claim. Thus, claims not exceeding 20,000 Singapore dollars are heard by Small Claims Tribunals. This limit may be increased to 30,000 Singapore dollars if both parties give their written consent. Commercial claims not exceeding 60,000 Singapore dollars may be heard in magistrate courts. Civil claims for an amount exceeding 60,000 Singapore dollars but not exceeding 250,000 Singapore dollars are heard in district courts. Civil claims exceeding 250,000 Singapore dollars are heard by the High Court.

The legislative acts regulating arbitration in Singapore are the International Arbitration Act 1994 ( the "IAA") and the Arbitration Act 2001 (the "AA").

As the name suggests, the IAA generally regulates any arbitration conducted in Singapore that is an international arbitration. In turn, the AA applies to any arbitration conducted in Singapore that is not an international arbitration. The IAA incorporates the UNCITRAL Model Law on International Commercial Arbitration and also implements the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. [32]

In accordance with the IAA, an arbitration is international if:

one of the parties at the time of concluding the arbitration agreement had its place of business outside Singapore;
the place of arbitration is outside the state in which the parties have their places of business;
the place where a substantial part of the commercial obligations is to be performed is outside the state in which the parties have their places of business;
the place with which the subject matter of the dispute is most closely connected is outside the state in which the parties have their places of business; or
the parties have expressly agreed that the subject matter of the dispute relates to more than one country.

Additionally, it is provided that the IAA may apply to arbitrations that are not international if the parties to the arbitration agreement agree in writing that the IAA or the UNCITRAL Model Law should apply to the arbitration.

Some aspects of the IAA are expressed in mandatory terms, meaning that neither the parties nor the court can deviate from them. The IAA expressly provides that parties are free to adopt institutional rules only to the extent that they do not conflict with those parts of the IAA or the UNCITRAL Model Law that are mandatory. There are clear provisions that are not mandatory and are usually expressed as provisions that apply "unless the parties have agreed otherwise". [33]

Some key provisions that are generally considered mandatory include:

the arbitration agreement must be in writing;
the arbitrator's duty to treat the parties on equal terms;
exclusion of liability for an arbitrator's negligence or any error in law, fact, or procedure;
the Limitation Act 1959 and the Foreign Limitation Periods Act 2012 apply to arbitration proceedings conducted in Singapore. Any arbitration agreement providing that for limitation purposes a cause of action will not arise until an award is issued will have no effect, and the cause of action will be deemed to have arisen as if no such agreement existed;
that a dispute cannot be resolved by arbitration if it is contrary to public policy. Case law clarifies that a dispute must be arbitrable in accordance with the public policy of Singapore (as the law of the seat) and in accordance with the public policy of the law of the arbitration agreement (when that law is not the law of Singapore). [34]

In recent years, the Singapore International Arbitration Centre ("SIAC") [35] has grown to become one of the most widely used arbitration centers in the Asia-Pacific region and the world.

SIAC was founded in 1991 as an independent non-profit organization for administering cases for foreign partners, whose awards are enforced by the jurisdictions of various states that have ratified the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, concluded in 1958 in New York.

To initiate a case in SIAC, the party wishing to commence arbitration (the Claimant) submits a Notice of Arbitration to the Registrar, which includes:

a demand that the dispute be referred to arbitration;
the known names, addresses, telephone numbers, fax numbers, and email addresses of the parties to the arbitration and their representatives, if any;
a reference to the arbitration agreement being relied upon, with a copy of the arbitration agreement attached;
a reference to the contract or other document (e.g., an international treaty on investment protection) out of or in connection with which the dispute arises, with a copy of said contract or other document attached, if possible;
a brief summary of the nature and circumstances of the dispute, specifying the claims and, if possible, a preliminary calculation of the claim price;
a statement of any issues concerning the conduct of the arbitration proceedings on which the parties have previously reached agreement, or in respect of which the Claimant wishes to make a proposal;
a proposal regarding the number of arbitrators if not determined by the arbitration agreement;
unless the parties have agreed otherwise, a nomination of an arbitrator if the arbitration agreement provides for three arbitrators, or a proposal for a sole arbitrator if the arbitration agreement provides for the dispute to be heard by a sole arbitrator;
any comments on the applicable rules of law; any comments regarding the language of the arbitration;
payment of the registration fee. [36]

Parties involved in a case at SIAC incur the following costs: [37]

a registration fee of 2,000 Singapore dollars for parties from other jurisdictions;
an administrative fee calculated based on the claim amount, ranging from 3,800 to 95,000 Singapore dollars;
arbitrators' fees calculated based on the claim amount and payable to each arbitrator, unless the parties have agreed upon another method for determining the fees of the arbitral tribunal, the minimum amount of which is 6,250 Singapore dollars;
fees for urgent interim measures;
a fee for hearing a challenge application;
other expenses.

SIAC recommends using the following arbitration clause when drafting contracts for the resolution of disputes in SIAC: "Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration administered by the Singapore International Arbitration Centre ('SIAC') in accordance with the Arbitration Rules of the Singapore International Arbitration Centre ('SIAC Rules') for the time being in force, which rules are deemed to be incorporated by reference in this clause". [38]

The following other arbitration institutions also operate in Singapore:

Singapore Chamber of Maritime Arbitration;
The International Court of Arbitration of the International Chamber of Commerce;
The Permanent Court of Arbitration;
The International Centre for Dispute Resolution;
The World Intellectual Property Organization Arbitration and Mediation Center;
The Beihai Asia International Arbitration Centre. [39]

In this article, we have examined the features of foreign trade with Singapore. Despite the imposed sanctions and restrictions, trade turnover between the two countries continues, although not at the volume seen prior to 2022. It is important for Russian companies to understand the specifics of verifying Singaporean companies and the procedure for concluding contracts, especially regarding the law applicable to the parties' relationship. The choice of applicable law is partly facilitated by the fact that both countries are parties to the Vienna Convention.

_________________________

References

[1] Roshchupkina E.V., The Singaporean Story of the Economic Miracle, Journal of Historical and Economic Research, 2023, Vol. 24, No. 2.

[2] Information from the Lloyds Bank website.

[3] Ibid.

[4] Ibid.

[5] Data from the Singapore Department of Statistics website.

[6] Data from the OEC.WORLD website.

[7] Trade Between Russia and Singapore in 2021, Russian Foreign Trade website.

[8] Ibid.

[9] Ibid.

[10] Ivanov M., Korolev A., Sanctions of Increased Comfort: What Did Singapore's Trade Restrictions Against Russia Lead To? November 7, 2024, Russia in Global Affairs magazine website.

[11] Ibid.

[12] Information from the website of the Ministry of Foreign Affairs.

[13] Trade is Appropriate: RF Did Not Refuse to Work on the Agreement with Singapore, October 23, 2024, Izvestia website.

[14] Foreign Trade Overview: Singapore, Agroexport website.

[15] Import & Export in Singapore (2023): Trade Policies & Regulation, OOSGA website.

[16] Ibid.

[17] Company in Singapore, ChinaWindow website.

[18] Singapore Statutes Online website.

[19] Company in Singapore, ChinaWindow website.

[20] Verifying a Company in Singapore, IntraCORP website.

[21] Company in Singapore, ChinaWindow website.

[22] Verifying a Company in Singapore, IntraCORP website.

[23] Company in Singapore, ChinaWindow website.

[24] Verifying a Company in Singapore, IntraCORP website.

[25] Ibid.

[26] Ibid.

[27] The Law of Contract, SingaporeLawWatch website.

[28] General Provisions of Singaporean Contract Law: 10 Main Features, VED LEGAL website.

[29] The Law of Contract, SingaporeLawWatch website.

[30] General Provisions of Singaporean Contract Law: 10 Main Features, VED LEGAL website.

[31] Singapore Statutes Online website.

[32] Singapore: International Arbitration, Legal500 website.

[33] Ibid.

[34] Ibid.

[35] Singapore International Arbitration Centre (SIAC). Source: https://brace-lf.com/services/mezhdunarodnyj-kommercheskij-arbitrazh-i-transgranichnye-spory/singapurskij-mezhdunarodnyj-arbitrazhnyj-tsentr-siak

[36] Ibid.

[37] Arbitration Rules of the Singapore International Arbitration Centre (SIAC), 6th edition, August 1, 2016, website of the Singapore International Arbitration Centre.

[38] Ibid.

[39] Singapore: International Arbitration, Legal500 website.