Mediation helps businesses to recover stronger from the repercussions of the Covid-19 pandemic. The majority of disputes may be settled swiftly, inexpensively and effectively, without engaging in protracted legal proceedings. Business partnerships are preserved as relationships are maintained. Parties arrive at flexible and creative solutions that are mutually beneficial. The Singapore Convention on Mediation has also come into force, allowing businesses to ensure that their settlement agreements are enforceable in countries that have ratified the treaty, including Singapore.
Japanese businesses occupy a key presence in Singapore and the region. For example, Japan and Singapore are among each other’s largest investors. Given the huge volume of trade, business and investments involving Japanese businesses, the Singapore International Mediation Centre and the Japan International Mediation Center created a joint mediation protocol back in 2020 during Covid period.
This is the first known Covid-19 mediation protocol between two international centres. The Joint Protocol offers the “best of both worlds” to businesses that operate across Japan, Singapore and the rest of the region, overcoming physical, cultural and jurisdictional barriers to promote settlement.
One unique feature is the appointment of co-mediators. In a mediation between a Japanese and a non-Japanese party, parties discuss their dispute with mediators who understand their respective jurisdiction and culture.
The Joint Protocol exploits the synergies in case management between SIMC and JIMC, which is administered by a committee under the Japan Association of Arbitrators (JAA) – one of Japan’s most prominent arbitrator associations.
The joint protocol was renewed and revised in August 2023 to align with the post-pandemic business landscape in both countries..
KEY FEATURES:
(1) Mediations may be filed at either JIMC or SIMC. JIMC and SIMC will jointly manage mediations.
(2) Cases will be resolved by two experienced mediators, one nominated by each Centre.
(3) Parties will enjoy fixed and reduced fees adapted for the Japanese market. For example, for disputes of less than US$1M, each party pays S$5,000* (inclusive of GST) (see Fee Schedule below).
(4) Mediation is conducted fully online and commencing at a time between 9.00 a.m. to 10.00 a.m (Japan time or Singapore time, where the mediation is administered by JIMC or SIMC respectively). JIMC and SIMC are able to provide physical venues for mediations that will be conducted totally or partially in person. However, different rates from those set out in the Fee Schedule will apply..
(5) Settlement agreements may be enforced under the Singapore Convention on Mediation in countries that have ratified the Convention, including Singapore.
FEE SCHEDULE*
| Dispute Value (USD | Total Fee Payable per Party (USD)* |
|---|---|
| Below $1M | $5,000 |
| $1M-$5M | 0.5% of Dispute Value, subject to a cap of $10,000 |
| Above $5M | 0.2% of Dispute Value, subject to a cap of $12,000 |
*Fees may be subject to prevailing Goods and Services Tax in Singapore or consumption tax in Japan.
*Fees payable to JIMC shall be converted into Japanese yen by JIMC with reference to then prevailing Japanese yen / USD exchange rate.
*Fees payable to SIMC may be converted into Singapore dollars by SIMC with reference to then prevailing Singapore dollar / USD exchange rate.