Answer ... The tribunal has wide discretion to award costs, unless otherwise agreed between the parties. The general practice in this regard is that ‘costs follow the event’ (ie, costs are paid by the losing party). There is generally no limit on the quantum of costs that may be awarded. However, if the overall successful party has not succeeded on all issues raised, this may be taken into account to reduce the costs awarded to reflect the relative measure of success.

Section 21 of the International Arbitration Act provides that costs in an international arbitration may be taxed by the Registrar of the Singapore International Arbitration Centre (SIAC); while Section 39 of the Arbitration Act provides that costs in a domestic arbitration may be taxed by the Registrar of the Supreme Court of Singapore. For domestic arbitrations, it is presumed that the principles applicable to taxation of costs in Singapore court proceedings will be applied. However, for international arbitrations, neither the International Arbitration Act nor the arbitration rules of the SIAC provide any guidance as to the principles to be applied.

For more information about this answer please contact: Alvin Yeo and Koh Swee Yen from WongPartnership LLP

Answer ... For an arbitration governed by the Arbitration Act, any provision in the arbitration agreement to the effect that the parties or any party shall, in any event, pay its own costs of the reference or award or any part thereof shall be void (Section 39(2) of the Arbitration Act). However, such a provision will not be void if it is part of an agreement to submit to arbitration a dispute which arose before such agreement was made (Section 39(3) of the Arbitration Act).

There is no equivalent provision for international arbitrations under the International Arbitration Act.

For more information about this answer please contact: Alvin Yeo and Koh Swee Yen from WongPartnership LLP