Singapore to bid for UN investment tribunal

The proposed permanent body would hear disputes between investors and states.

Singapore will submit a bid to host the proposed Multilateral Investment Tribunal (MIT), which is being negotiated under the United Nations Commission on International Trade Law.

The tribunal forms part of the work of UNCITRAL Working Group III on reforms to the investor-state dispute settlement framework.

Investment disputes between states and foreign investors are typically resolved through arbitration. However, the Ministry of Law said the existing framework has faced concerns over legal uncertainty, the independence and diversity of arbitrators, and the cost and duration of proceedings.

The MIT is envisioned as a permanent tribunal comprising independent, elected members serving fixed terms. It would hear international investment disputes between investors and states.

According to the ministry, a standing tribunal could provide greater consistency and predictability in international investment law whilst addressing concerns about independence and impartiality.

As part of its bid, Singapore is prepared to support an assistance fund that would help developing and least-developed countries access the tribunal’s services.

It also plans to provide translation and transcription services to make the tribunal more accessible to its users.

The Ministry of Law cited Singapore’s connectivity, political and legal stability, dispute-resolution infrastructure and international legal-services sector as factors supporting its bid.

Singapore already hosts offices or facilities associated with the Permanent Court of Arbitration and the International Centre for Settlement of Investment Disputes. The ministry said the proposed tribunal could benefit from the presence of these institutions and international law firms operating in the city-state.

Singapore also plans to work with interested states and international organisations, including the two dispute-resolution institutions, to support the tribunal’s establishment.

The MIT remains under negotiation, and the announcement did not provide a timeline for its establishment or for the selection of a host.