A new agreement will make it easier for Chinese and Singaporean firms to settle disputes arising from across-border commercial transactions under the Belt and Road Initiative.
The memorandum of understanding (MOU) was signed yesterday between the China Council for Promotion of International Trade/China Chamber of International Commerce Mediation Centre and the Singapore International Mediation Centre.
Mr Han Kok Juan, Ministry of Law deputy secretary, noted at the signing that the Belt and Road Initiative "covers over 60 countries and many civilisations".
"As projects involve cross-border, high-value and long-term investments, there will inevitably be some political and financing risks, operational challenges and differences in systems and practices.
"While businesses seek cooperation, they need to also plan for disputes. Agreeing in advance on how disputes will be resolved should they arise can strengthen trust and further co-operation."
The MOU, which was signed at the International Mediation Summit in Hangzhou, China, also opens a new chapter in closer legal services cooperation between China and Singapore, said Mr Han.
The Mediation Centre here, which started in 2014, has over 70 renowned mediators from all over the world. Many of its users are Chinese parties, he said.
The Mediation Centre here has over 70 renowned mediators from all over the world.