Litigation vs. Arbitration in Singapore: Which Is Right for Your Case?

Are you confused about whether arbitration or litigation is the better choice for your legal problem? Do you wonder which one provides a quicker resolution, lower costs, or more confidentiality? We at PDLegal have handled clients with both arbitration and litigation in Singapore—and we know that making the correct choice can really matter. Let us set out the main distinctions between arbitration and litigation, so that you can make a well-informed choice about what you need.

Understanding Litigation in Singapore

Litigation refers to the process of resolving disputes through the court system. In Singapore, litigation is governed by a structured judicial framework comprising the State Courts, High Court, and the Court of Appeal.

Key characteristics of litigation:

• Court proceedings are generally public.
• Parties have a right to appeal.
• Judgments are binding and enforceable under Singapore law.

Litigation is typically preferred when a matter involves public interest, when a party seeks a legal precedent, or when there is a need to compel cooperation through court orders.

What Is Arbitration?

Arbitration is a private method of dispute resolution where parties agree to appoint a neutral arbitrator to decide the outcome. In Singapore, arbitration may be conducted under the Arbitration Act for domestic cases or the International Arbitration Act for international disputes.

Distinct features of arbitration:

• Proceedings are confidential.
• The process is flexible and often faster than litigation.
• Awards are generally final and enforceable internationally.

Arbitration is commonly used in commercial and cross-border disputes due to its neutrality and global enforceability under the New York Convention.

Litigation vs. Arbitration: Core Differences

The decision between litigation and arbitration in Singapore depends on the nature and context of the dispute. Below is a comparison of the two processes:

• Setting:
  • Litigation: Public court
  • Arbitration: Private process
• Control:
  • Litigation: Court decides procedure
  • Arbitration: Parties choose rules
• Confidentiality:
  • Litigation: Public records
  • Arbitration: Confidential
• Appeals:
  • Litigation: Appeals allowed
  • Arbitration: Limited or no appeals
• Enforceability:
  • Litigation: Local enforcement
  • Arbitration: International enforcement
• Speed:
  • Litigation: Can be slower
  • Arbitration: Often quicker

When Is Litigation More Suitable?

Litigation is often appropriate when:

• Public record is necessary or beneficial
• The dispute involves legal issues that may require a precedent
• There is a possibility of appeal, or the case may evolve over time

Additionally, when one party is uncooperative or enforcement within Singapore is required, litigation offers a more formal mechanism to compel compliance.

When Does Arbitration Work Better?

Arbitration is ideal in situations that require:

• Confidentiality, such as disputes involving trade secrets or sensitive contracts
• Cross-border enforcement of awards
• Faster resolution, with limited opportunities for delay through appeals

It is commonly used in sectors like construction, shipping, and international trade, where neutrality and enforceability across jurisdictions are crucial.

Key Benefits of Each Process

Litigation offers:

• Transparency through open court proceedings
• Legal certainty through precedents
• The ability to appeal decisions

Arbitration offers:

• Privacy and discretion
• Party autonomy over procedural rules
• Finality of decisions with limited court interference
• Ease of enforcement in over 160 countries under the New York Convention

Singapore’s Role as a Dispute Resolution Hub

Singapore is internationally recognized as a leading venue for both litigation and arbitration. The judiciary is efficient, impartial, and known for handling complex commercial matters. Singapore is also home to major arbitration institutions such as the Singapore International Arbitration Centre (SIAC), attracting disputes from around the world.

The country’s legal framework actively supports both litigation and arbitration, providing parties with comprehensive options to resolve their conflicts.

How to Decide What’s Right for Your Case

Choosing between litigation and arbitration in Singapore depends on factors such as:

• The nature of the dispute
• Whether confidentiality is important
• Whether an enforceable decision across borders is needed
• The possibility of appeal
• The parties’ agreement (especially if a contract includes an arbitration clause)

Before initiating any proceedings, it’s important to review existing contracts, understand the governing law, and consider jurisdictional issues.

How We Help at PDLegal

Whether you’re leaning towards litigation or considering arbitration in Singapore, we provide:

• Case-specific strategy reviews
• Dispute resolution planning
• Legal representation across all courts and arbitration platforms

At PDLegal, we don’t just offer legal expertise—we offer confidence through clarity. Our approach is grounded, strategic, and always tailored to your unique situation.

Conclusion

Litigation and arbitration each offer unique advantages in Singapore, and the right choice depends on your dispute’s goals—whether it’s speed, confidentiality, enforceability, or legal precedent.

At PDLegal, we understand both processes deeply and help clients make informed decisions with confidence. Reach out to us and let us guide you toward the best resolution!

Contact PDLegal today for comprehensive legal support in Singapore’s dynamic maritime sector

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Disclaimer: This article is intended to provide general information only and does not constitute legal advice. It should not be used as a substitute for professional legal consultation. We recommend seeking legal advice before making any decisions based on the information in this article. PDLegal fully disclaims any responsibility for any loss or damage that may result from reliance on this article.