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.
Bilateral ties and economic cooperation between Singapore and Türkiye have heightened in recent years and are set to further deepen following the Free Trade Agreement which has gained a significant momentum since it was signed on the sidelines of the G20 Leaders’ Summit in Antalya in November 2015.
Türkiye is Singapore’s 46th largest trading partner globally, and bilateral trade between Singapore and Türkiye has consistently crossed S$1 billion since 2007. Given the huge volume of trade, business and investments involving Indonesian businesses, the Singapore International Mediation Centre and the TOBBUYUM Mediation and Dispute Resolution Centre (“TOBBUYUM”) have created a joint mediation protocol.
The Joint Protocol offers the “best of both worlds” to businesses that operate across Türkiye, 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 Turkish and a non-Turkish 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 Tobbuyum.
KEY FEATURES:
(1) Mediations may be filed at either TOBBUYUM or SIMC. TOBBUYUM 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 Türkiye 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 (Türkiye time or Singapore time, where the mediation is administered by TOBBUYUM or SIMC respectively). TOBBUYUM 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 Value-Added Tax in Türkiye.
*Fees payable to TOBBUYUM shall be converted into Turkish lira with reference to then prevailing Turkish lira/ 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.