Singapore International Commercial Court
New court to be set up to hear cross-border commercial cases
Another change to legal landscape is single body to regulate all law firms
By K.c. Vijayan Senior Law Correspondent And Lim Yi Han, The Straits Times 5 Nov 2014
SIGNIFICANT changes to Singapore's legal landscape were passed by Parliament yesterday, allowing the setting up of a court to deal with international cases, and a new body to regulate all law firms - both local and foreign - here.
Traditional law firm structures are also set to change after non- lawyer employees were allowed to become partners, directors or shareholders.
Law Minister K. Shanmugam said the setting up of the Singapore International Commercial Court (SICC) will allow the country to draw on the significant opportunities in cross-border deals and disputes arising from the region's tremendous economic growth.
The SICC, which will hear international commercial disputes, complements existing arbitration services and an upcoming international mediation centre, allowing Singapore to provide a full suite of dispute resolution options.
"Parties involved in cross-border disputes rely on the courts in London or New York, if they do not want to arbitrate... There is presently no equivalent default court in Asia. Our intention is to become that default court. No other country provides this option. We want to be the first, and we want to succeed," said the minister.
He added that the new court will bank on Singapore's outstanding "brand name" for good governance, low corruption and efficiency, its highly regarded judiciary and high-quality legal services.
"Our neutrality is also an important factor which will help," he said.
Both sides of the House lauded the SICC's advent. Describing the move as "bold and creative", MP Hri Kumar Nair (Bishan-Toa Payoh GRC) said "the SICC represents a new way of thinking about international dispute resolution".
Workers' Party MP Pritam Singh (Aljunied GRC) added the SICC and the appointment of international judges have "the potential of making Singapore a key centre for legal work in Asia".
Mr Shanmugam also provided details of the new Legal Services Regulatory Authority - under the Ministry of Law - which will regulate all law firms.
Before, the Attorney-General's Chambers dealt with foreign firms while the Law Society handled matters relating to local ones.
This "integrated licensing system" will make it more convenient for law firms to set up offices in Singapore by "streamlining processes" and will ensure that there is a more coherent and consistent regulatory approach, he said.
Changes to the Legal Profession Act also provide for the setting up of "Legal Disciplinary Practices" which allow non-lawyer employees to become partners, directors or shareholders.
But such firms will only be allowed to offer legal services for now, unlike other alternative models which allow them to offer other services such as accountancy.
A Professional Conduct Council to oversee the issue of professional conduct rules for both Singapore-qualified and foreign-qualified lawyers practising law here will also be set up.
WP MP Sylvia Lim (Aljunied GRC) noted that this "makes rather drastic changes in the way the legal profession is organised and regulated" and that it eroded the Law Society's role. But Mr Shanmugam said the move is necessary "for us to adapt, anticipate, and keep ahead of changes and have a certain logical framework".
Overall, the changes to the Legal Profession Act will modernise and streamline the regulatory framework for lawyers and law practices. These amendments seek to "maintain high professional standards in the legal industry", he said.
What's special about the SICC
By Lim Yi Han, The Straits Times 5 Nov 2014
- IT IS an international court with specialist jurists hearing international commercial disputes.
- Disputes it will hear include those governed by foreign law and in which the parties have agreed to use the SICC, or the case has been transferred from the High Court.
- It will complement existing arbitration services and broaden the suite of dispute resolution options to attract regional and international parties to settle their disputes here.
-Singapore lawyers and law firms will have more opportunities to tap Asia's growth, as the SICC brings "offshore work" here.
- It is the first in Asia to help businesses involved in cross-border disputes.
'When you have a small Bar and very small talent pool'
By Lydia Lim Associate Opinion Editor, The Straits Times 5 Nov 2014
THE Workers' Party yesterday made judicial independence the reason for not supporting an amendment to the Constitution tabled by Law Minister K. Shanmugam.
It was an odd move on the part of the opposition party. As Mr Shanmugam pointed out, the objections raised by Aljunied GRC MPs Sylvia Lim and Pritam Singh - both lawyers - had nothing to do with the amendment before the House, but were related to changes the WP wished the Government were making instead.
Any amendment to the Constitution - being the supreme law of the land - is a serious matter. To be passed, it needs the assent of not less than two-thirds of the elected Members of Parliament.
The key aspects of yesterday's amendment were to create two new judicial appointments, namely, International Judges and Senior Judges; and to introduce a gratuity plan in place of pensions for future holders of judicial and statutory appointments.
The first relates to the setting up of the Singapore International Commercial Court, as the Republic moves to realise its vision of becoming the leading dispute-resolution hub in the region.
The second follows from the Public Service Division's review of salaries last year.
These were clearly set out in Mr Shanmugam's speech.
But when Mr Singh joined the debate, he announced the WP's opposition to the Constitution Bill on the grounds that the party was uncomfortable with the change to allow retired High Court judges to be appointed on short terms as Senior Judges.
"This weakens a concept critical to judicial independence, namely, the security of tenure," he said.
The WP's view, as set out in its manifesto, is that the Constitution should instead be amended to extend the retirement age of Supreme Court judges from 65 to 70, with no prospect for extension thereafter, he said.
"While extensions and short- term appointments are administratively convenient," he added, "it is the Workers' Party view that they weaken the protective wall that upholds judicial independence.
"Under the existing regime, which this Bill re-enacts, it is conceivable that a judge past the retirement age may be retained by the Government because his or her judgments are 'safe' ones and acceptable to the Government, even as the Judiciary remains a separate organ of state.
"While I am not suggesting that this has occurred, such judgments may well be read as a signal by other judges who have not reached retirement age, as a factor that might determine the prospects for future judicial employment past the statutory retirement age or for a permanent appointment in the case of Judicial Commissioners."
A Judicial Commissioner or JC has all the powers and functions of a High Court judge but is appointed on a short tenure. Singapore's practice of appointing JCs dates back to 1979, when the Constitution was amended to allow for it.
Yesterday's amendment merely extended this practice to the appointment of Senior Judges.
Still, Mr Shanmugam chose to address the WP's concern over security of tenure seriously and factually, for which he is to be commended.
Currently, judges enjoy security of tenure up to the retirement age of 65. Should that be raised to 70?
In an ideal world, perhaps, he said, adding that on the issue of tenure, "fundamentally, we don't disagree".
"But the point is you have to take the profession as you find it and try and fit the rules to the best you can, and if you are too theoretical or too dogmatic about this, in the end you will not have had the judiciary that we have had with the outstanding reputation that it has," he said.
In 1979, Mr Lee Kuan Yew had explained to the House the need for JCs. Lawyers in private practice indicated - and they continue to indicate, said Mr Shanmugam - a preference for short-term appointments to the High Court bench, after which they could decide whether they wanted to continue or to go back into practice.
In 1986, former Chief Justice Chan Sek Keong became the first person to be appointed a Judicial Commissioner.
CJ Chan is "possibly the greatest jurist of his generation", Mr Shanmugam said, citing him as an example of an outstanding judge who started out as a JC.
The Law Minister also stressed the need to deal practically with the reality of "a small Bar, which is what we have, and a very small talent pool".
Therein lies a key difference between what those in Government find they have to do and what those in the opposition prefer they do.
All seven WP MPs voted against the constitutional amendment.
But it passed easily with 69 ayes, 11 more than the 58 needed, thanks to PAP MPs' strong turnout - the best the House has seen for some time.
Rehiring of retired judges a 'pragmatic necessity'
By Abdul Hafiz, The Straits Times 5 Nov 2014
AN AMENDMENT to the Constitution to pave the way for the short-term rehiring of retired judges as Senior Judges was opposed by Workers' Party (WP) MPs, who said that the move could give rise to questions about judicial independence.
But Law Minister K. Shanmugam dismissed their concerns, explaining that short-term tenures are a pragmatic necessity, given the small pool of legal talent here.
He also reminded Aljunied GRC MPs Pritam Singh and Sylvia Lim that Singapore's judiciary is highly regarded and is one of the most respected in the world.
The change, one of five made to the Constitution yesterday, was passed 69 votes to seven - more than the quorum of two-thirds of MPs needed for constitutional changes. All seven elected WP MPs voted against it.
Senior Judges are one of two new judicial appointments created by the change. The other is that of International Judges.
The latter appointments are part of the new Singapore International Commercial Court (SICC), which aims to make Singapore the dispute-resolution centre in Asia. International Judges can be appointed to hear specific cases or to a specific period at the SICC.
Senior Judges will be similarly appointed, but with a crucial difference: They can sit in the High Court and Court of Appeal.
Mr Alvin Yeo (Chua Chu Kang GRC), a lawyer, said this was an efficient way to tap the collective wisdom and experience of judges who have to retire at 65: "Many of them have the energy and commitment to still contribute."
But Ms Lim, a lawyer, made it clear the WP opposed temporary judges - including Judicial Commissioners (JCs), the first of whom was appointed in 1986 in a move to get lawyers in private practice on the Bench to clear the backlog of High Court cases.
Citing the possibility of executive interference in the judiciary, she said: "Whether they get their contracts renewed would depend on whether (it) is recommended by the Prime Minister and concurred with by the President."
This "carries a risk that short-term judges would be wary of making decisions that put the Government or ruling party politicians in a bad light, and might make 'safe' decisions so as not to jeopardise their re-appointment. We should remove this risk".
Her colleague, Mr Singh, also a lawyer, quoted former chief justice Chan Sek Keong as saying in 2010 that the judiciary's role as the linchpin of democracy is "heavily contingent on it being an independent institution".
Mr Singh suggested the retirement age of High Court judges be simply extended to 70.
Mr Shanmugam said that while "we don't disagree" on the importance of tenure and its relation to a judge's independence, there needs to be a balance: "We have a small Bar, a small pool and... a smaller pool of talent of the quality who can become your High Court judges and chief justices."
He pointed out that former chief justice Chan started as a JC and stayed on: "I don't think anyone questions his independence..."
All the current 14 High Court judges, including Chief Justice Sundaresh Menon, started as JCs.
Not only is the judiciary ranked top by major global institutions, but Mr Shanmugam said Singapore has "a highly educated public and they can look at judgments and decide whether the Bench is of the quality that we want".
Yesterday's changes included creating the post of Deputy Attorney-General; changes to the Presidential Council for Minority Rights; and the renaming of the Government of Singapore Investment Corporation to just GIC.
New gratuity plan 'not inconsistent'
By Tham Yuen-C, The Straits Times 5 Nov 2014
A CHANGE in the law that will result in future judges and Attorneys-General receiving a gratuity payment when they retire - instead of monthly pensions - was questioned by Workers' Party MP Pritam Singh (Aljunied GRC) in Parliament yesterday.
Speaking during the debate on proposed changes to the Constitution, he said the move was at odds with the Government's principle of paying public servants a "clean wage", without hidden perks.
The change involves replacing the existing pension scheme of various High Court judicial and statutory appointment holders with a gratuity plan, and giving the President the power to do so.
Those currently in the post of Chief Justice, Judges of Appeal, High Court judges, Attorney-General, Auditor-General and Public Service Commission chairman qualify for monthly payments and medical benefits after they retire.
But with changes passed yesterday, those appointed to these positions in future will come under a gratuity plan instead.
Mr Singh, noting that Parliamentary pensions were removed in 2012 and not replaced, asked why pensions for such appointment holders were being replaced.
Responding, Law Minister K. Shanmugam said there was no inconsistency at all.
A committee appointed to evaluate public service salaries last year found that judges were being paid adequately.
The level of pay, including pensions, was necessary to recruit and retain people of high ability, integrity and commitment to hold such key appointments.
Mr Shanmugam said the change from a pension to a gratuity system is in line with the direction adopted by most of the public service.
Also, the changes apply only to future judicial and statutory appointment holders - not those currently in the job, he said.
"This is the opportunity to make the constitutional amendments without impacting on the current judges, because we do not want any suggestion that we are making changes to their income in a way that is detrimental to them," he added.
Under the Constitution, High Court judges are appointed by the President and have security of tenure. Their remuneration is also protected and cannot be altered to their disadvantage after they are appointed.
Landmarks marking historic events to get prime locations
These efforts are strongly backed by Govt, community: Lawrence Wong
By Nur Asyiqin Mohamad Salleh, The Straits Times 5 Nov 2014
AS SINGAPORE heads towards its 50th year of independence, two landmarks to commemorate historic events in its turbulent past will be set up in bustling areas in the heart of the country.
A memorial to the victims of Konfrontasi will stand on Dhoby Ghaut Lawn opposite MacDonald House in Orchard Road.
Similarly, a marker to honour those who fought the Communists in Singapore's early years will be placed in Esplanade Park along Queen Elizabeth Walk.
The central and prominent location of the marker in the Civic District, said Minister for Culture, Community and Youth Lawrence Wong, means it will be near the Cenotaph, the Lim Bo Seng Memorial and the Tan Kim Seng Fountain, which have collectively been gazetted as a national monument.
"By putting these markers and memorials together, we create a larger sense of Singapore's history and the context of our early years," he told Parliament yesterday.
Former president S R Nathan, who dealt with pro-Communist activists in the trade unions in the 1960s, will be the guest of honour at the unveiling of the marker on Dec 8.
December marks the 25th anniversary of the signing of the 1989 Haadyai Peace Agreements between the Communist Party of Malaya (CPM) and the governments of Malaysia and Thailand. The agreements marked the end of the CPM's four-decade campaign of violence and subversion.
The Konfrontasi memorial is expected to be completed next year.
Mr Wong said it would be a reminder of the events that unfolded on March 10, 1965 - "a date remembered by many as the darkest day of Konfrontasi". Two Indonesian marines bombed MacDonald House that day, killing three people and injuring more than 30.
Mr Wong gave details of these commemorative efforts in his reply to Nominated MP Tan Tai Yong, on behalf of Prime Minister Lee Hsien Loong, who had announced the plans at a National University of Singapore Society event last month.
Professor Tan, a historian, also asked if they were a community effort or a government decision.
Replying, Mr Wong said both the community and the Government strongly support them.
The marker on the fight against Communism came from feedback that the Home Team received in recent months from retired police officers.
Recalling the incidents of Communist violence, assassinations, student demonstrations and labour strikes, they asked for recognition for the people who stood up to the Communists.
The Konfrontasi memorial was an idea the Singapore Armed Forces Veterans' League came up with earlier this year.
But, even before this, members of the public sent letters suggesting various ways to commemorate the MacDonald House bombing, said Mr Wong.
Both events not only claimed lives, "but fundamentally threatened Singapore's sovereignty and security", he said. "Had the Communist side won, we would be living in a totally different Singapore today. Likewise, if Sukarno's campaign to 'crush Malaysia' had succeeded."
He added: "Therefore, it is important to have tangible landmarks to help younger and future generations of Singaporeans understand how we got here, and why it was critical that our forefathers supported and fought for the security and future of Singapore."
These landmarks, he added, will also remind Singaporeans to remain vigilant in safeguarding the country's peace and security.
Communist threat: A 40-year-long battle
SINGAPORE battled the violence and subversion waged by the Communist Party of Malaya (CPM) for 40 years, from 1948 to 1989.
In June 1948, a state of emergency was declared when the CPM launched an armed insurrection to try to capture Malaya and Singapore and install a communist regime.
Thousands of civilians and security personnel were killed and injured on both sides of the Causeway, with at least 28 deaths in Singapore.
Konfrontasi: Armed conflict over Malaysia
THE Indonesia-Malaysia confrontation - known as Konfrontasi - spanned three years, from 1963 to 1966.
It was an armed conflict started by Indonesian President Sukarno to oppose the formation of Malaysia.
Singapore then had only two regular army units and they were deployed in Malaysia.
The defence of Singapore was entrusted to the Singapore Volunteer Corps and the Vigilante Corps, established in 1964.
In two months, more than 10,000 people volunteered.
'Completion delay, misjudgment' led to National Stadium's pitch woes
By May Chen, The Straits Times 5 Nov 2014
The National Stadium's pitch problems are due primarily to the three-month delay in its completion, as well as the Singapore Sports Hub management misjudging the impact that an intensive calendar schedule would have on the field.
Commenting on the sandy state of the pitch yesterday in Parliament, Minister for Culture, Community and Youth Lawrence Wong said that he shares concerns about how the unsatisfactory pitch condition could affect Singapore's global reputation.
Fielding questions from MPs Baey Yam Keng (Tampines GRC) and Pritam Singh (Aljunied GRC), he said: "SportsHub Pte Ltd (SHPL) had taken three months longer than expected to complete the National Stadium, and this meant there was not enough time to allow the grass on the pitch to take root and stabilise. In addition, SHPL misjudged the impact that the intensive events calendar would have on the pitch."
While SHPL had carried out testing before deciding on using a hybrid pitch for the National Stadium, and also used a cover designed to allow activities to take place on the pitch with reduced impact on the grass, he noted that it did not work out as planned, partly because the grass did not have sufficient time to anchor deeply enough.
Remedial actions since its opening in June, such as bringing in growth lights to enhance the growth of the grass, cancelling a rugby match featuring the Maori All Blacks, and the postponement of a concert by Taiwanese pop star Jay Chou, were taken, with SHPL bearing the costs.
Mr Wong said these measures have resulted in vast improvements to pitch conditions in time for the Asean Football Federation (AFF) Suzuki Cup later this month.
Nevertheless, SHPL has been tasked to go through the results of its earlier testing to ensure a suitable long-term solution. He said: "(SHPL) will share results with the Government, with Sport Singapore, and we are also asking our own experts from NParks (National Parks Board) to satisfy ourselves that whatever solution proposed is a robust one."
Sports Hub chief operating officer Oon Jin Teik confirmed that SHPL is doing its utmost to get the pitch right.
"We are indeed working hard to optimise the pitch in preparation for the AFF Suzuki Cup and are tracking its progress very closely," he said.
Mr Wong acknowledged SHPL's efforts in taking ownership of the situation, and said that while there were exit provisions in the partnership that the Government could activate, they were not being considered.
Proposed law to restrict sale, public consumption of alcohol
By Hoe Pei Shan And Lim Yi Han, The Straits Times 5 Nov 2014
THE lessons learnt from the drunken riots in Little India last year could soon be applied elsewhere.
A tough new law could be in place by next year to restrict public consumption of alcohol and limit its selling hours, Second Minister for Home Affairs S. Iswaran told Parliament yesterday.
This follows an extensive review of alcohol restriction measures from October last year to August this year, which included public consultations.
"The respondents generally supported having some restrictions to mitigate law and order issues and disamenities," said Mr Iswaran, in response to a question from Mr Alex Yam (Chua Chu Kang GRC).
"The measures under consideration include restricting public consumption of liquor and the hours for retail sales of liquor."
He said that the Ministry of Home Affairs (MHA) would take into account the experience from the alcohol restrictions imposed in Little India following the riot last December.
MHA has also been studying the practices of foreign jurisdictions. "In states like South Australia and Texas, for example, the consumption of alcohol in public places is not allowed at times when problems associated with alcohol consumption are more significant," said Mr Iswaran.
In Singapore, temporary measures, which remain in place till next April, were introduced in Little India following the Dec 8 riot which injured 54 responding officers and damaged 23 emergency vehicles.
These measures prohibit alcohol consumption in public places from 6am on Saturday to 6am on Monday. The prohibition also applies from 6am on the eve of public holidays to 6am on the day after the holiday.
The proposed new law could make its mark across the island, while maintaining tailored approaches for identified hot spots.
Two phases of public consultations were held, with the first concluding in December last year.
Eight in 10 people surveyed then said they supported a proposed ban on the drinking of alcohol in some public places, such as areas close to MRT stations, playgrounds and void decks.
The respondents also mostly wanted shortened sale hours of alcohol in residential areas.
This week, MHA will release its findings from its consultations on different models of public consumption and restrictions on alcohol sales.
Ms Denise Phua (Moulmein-Kallang GRC) urged the Government to continue with the current restrictions applied to Little India and extend them to other hot spots with large congregations of migrant workers, in particular residential areas. This would include Geylang, she said.
Geylang Serai Community Club managing committee chairman James Koh said residents would welcome tighter alcohol restrictions by time, rather than by selective enforcement.
Pioneer fund Bill to be amended following NMP's suggestion
By Tham Yuen-C, The Straits Times 5 Nov 2014
THE Pioneer Generation Fund Bill, passed by Parliament on Monday, will be amended to take in a suggestion by Nominated MP Chia Yong Yong.
Senior Minister of State for Finance Josephine Teo said, in a clarification to Parliament yesterday, that the amended clause would be formulated and tabled at an opportune time.
The Bill was to set up a fund for the Pioneer Generation Package announced earlier this year.
During Monday's debate on it, Ms Chia, a corporate lawyer, wanted Clause 3 to be changed.
At issue is "them who are now elderly and are or may be in need of financial relief, assistance or other support", which she said suggested pioneers could be subjected to means-testing.
She asked that it be replaced with "pioneers".
Replying, Mrs Teo stressed that the Government had no intention of introducing means-testing for pioneers. The Bill was passed without any change.
Yesterday, Mrs Teo explained that with the short notice given on Monday for the proposed amendment, there was no time to consider possible implications.
But the Finance Ministry had since gone through the legislation again, and agreed it should be changed.
Thanking Ms Chia for her thoughtful suggestion, she said the change would "better convey the intent of the Pioneer Generation Package and avoid any doubt that the fund could become restricted to providing relief to only the financially needy".
The fund will cover the cost of the nearly $9 billion Pioneer Generation Package, and ensure it can be paid for beyond the current term of government.
Pursue qualifications from institutions with 'substance': Tan Chuan-Jin
By Hetty Musfirah Abdul Khamid, Channel NewsAsia, 4 Nov 2014
The Republic will be at greater risk of graduate underemployment if more continue to pursue higher education from institutions with less desirable standards, Manpower Minister Tan Chuan-Jin said in Parliament on Tuesday (Nov 4).
In his speech, he urged the young to go for institutions with "substance" when considering their education and career paths.
Singapore's unemployment among graduates is low and stable at 2.3 per cent in June 2013. About nine in 10 of graduates from tertiary institutions find jobs within six months.
But the Manpower Minister said Singapore is not immune to trends of unemployment and underemployment seen in other countries. In June last year, the rate of unemployment among degree holders below 30 was 7.4 per cent.
Mr Tan said one reason is because the pool of degree holders has been increasing. With more options for higher education, there is a worrying trend that the Government wants to minimise.
“We are seeing increasing access to private educational institutions or alternative routes which offer degrees of varying quality despite their sleek packaging. Those who spend time and money on these institutions may bear the greater risk of underemployment,” he said.
He also noted that the employment market has begun differentiating degrees that “carry their full worth” in both knowledge and skills, in comparison with degrees that are paper qualifications.
“In terms of their employment opportunities and especially their remuneration packages, it is a lot less than desired and that is a worrying trend," he said.
Mr Tan said the Government will continue to ensure that the economy remains vibrant and competitive so that quality jobs can be created. The SkillsFuture Council, for example, will spearhead efforts to develop an integrated system of education, training and career progression for Singaporeans.
They include helping individuals make informed choices on their education and training development to better meet industry needs.
YOUNG GRADUATES HAVE 'UNREALISTIC EXPECTATIONS'
One HR expert Channel NewsAsia spoke to said some young graduates have "unrealistic expectations".
Ms Rebecca Tan, general manager of Operations at Human Capital Singapore, noted that young graduates can be “choosy” in their job search and also have “high expectations” about their salary.
“Besides that, they are also concerned over long working hours and they do not want to work weekends because they want to have work-life balance,” she said.
“They also feel they can take their time to choose the jobs that they want, probably because they do not have family commitments and they do not have to be concerned that they must get a job immediately,” Ms Tan added.
Stricter rules for operators of large dorms, pawnshops
By Toh Yong Chuan, The Straits Times 5 Nov 2014
LARGE dormitories built specifically to house 1,000 or more foreign workers will be governed by stricter rules from next year.
Under a proposed law introduced yesterday, dormitory operators will have to get a licence which requires them, among other things, to take steps to control the movement of workers, provide recreational facilities and have in place quarantine plans.
This new scheme was set out in the Foreign Employee Dormitories Bill tabled by Manpower Minister Tan Chuan-Jin in Parliament.
It will affect about 50 dormitories.
Explaining the need for the licence, Mr Tan said in a statement that large dormitories "are more complex to manage" and tighter controls are needed "to ensure they are managed effectively".
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