Mediation Before Litigation in Singapore: The Order 5 Duty, Costs Risk and SMC or Court Mediation

Short answer: Under Order 5 of the Rules of Court 2021, every party to a Singapore civil dispute must consider amicable resolution before suing and during the case, should make a written offer to settle or mediate before filing, and must not reject such an offer without reasonable grounds. Ignoring the duty can cost a company money on costs, even if it wins.

Mediation before litigation is no longer a courtesy in Singapore. Since the Rules of Court 2021 took effect for civil proceedings commenced on or after 1 April 2022, a company that wants to sue, or that receives a claim, carries a formal duty to try to settle first. This guide explains what the amicable resolution duty requires, the costs risk of ignoring it, how State Courts mediation compares with commercial mediation at the Singapore Mediation Centre (SMC) or the Singapore International Mediation Centre (SIMC), and how a mediated settlement agreement becomes enforceable.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

What does the amicable resolution duty mean for mediation before litigation?

The amicable resolution duty is a rule of civil procedure that requires every party to a dispute to consider settling it, by negotiation, mediation or another method, before going to court and throughout the case. It applies to claimants and defendants alike.

An “offer of amicable resolution” is an offer to settle the action, or to resolve the dispute other than by litigation, in whole or in part. A written proposal to mediate counts. Mediation, as defined in section 3 of the Mediation Act 2017, is a process in which a mediator helps the parties identify the issues, explore options, communicate and voluntarily reach an agreement. The mediator does not decide who is right.

When deciding whether to order amicable resolution, the court must have regard to the Ideals in Order 3, Rule 1, which include expeditious proceedings and cost-effective work proportionate to the claim. An Order 5 offer is different from a formal offer to settle made once proceedings are under way; see our guide to the offer to settle in Singapore.

Who must make an offer, and when?

Both sides carry the duty: the party intending to sue should make an offer before filing, and either party must consider amicable resolution at every stage.

• Before the claim: the claimant is to make a written offer first, unless there are reasonable grounds not to, such as a limitation deadline about to expire.
• On receiving an offer: the recipient must not reject it without reasonable grounds, and any rejection must be in writing.
• During the case: paragraph 34 of the State Courts Practice Directions 2021 applies a “presumption of Alternative Dispute Resolution” to all civil claims filed in the State Courts, and the court may refer suitable cases to court ADR.

Employment salary and dismissal claims follow a separate track that usually begins at the Tripartite Alliance for Dispute Management (TADM); see our guide to preparing for a TADM mediation invitation.

What happens if your company refuses to mediate?

Refusing to mediate is not unlawful, but an unreasonable refusal can cost you when the court decides costs.

• Order 21, Rule 2(2)(a) requires the court, when fixing or assessing costs, to have regard to the parties’ efforts at amicable resolution.
• Order 21, Rule 4(c) allows the court to disallow or reduce a successful party’s costs, or order it to pay costs, if it has not discharged its Order 5 duty.
• In the State Courts, a party ordered under Order 5, Rule 3(3) to give reasons for refusing ADR must file an “ADR Sealed Document” within 7 days of the order unless the court directs otherwise. It stays sealed until the court considers costs.

A refusal can still be reasonable. The Singapore Courts note that mediation may not suit a business that needs a court ruling on a legal issue, such as the meaning of a clause in its standard contract, or where the other side seems to be attending only to gather information. Record your reasons in writing at the time.

Court mediation or SMC and SIMC commercial mediation: which suits an SME?

State Courts mediation is low-cost but available only once a case is filed; commercial mediation through a provider such as the SMC or SIMC is available at any time, including before a claim, but the parties pay the provider.

For High Court cases, the parties exchange an ADR Offer (Form 4) and Response (Form 5) through eLitigation; the Supreme Court does not offer mediation services, so parties choose an outside provider.

The SMC and SIMC matter for one practical reason. From 1 November 2017 the Ministry of Law designated four bodies as mediation service providers under the Mediation Act 2017: the SIMC, the SMC, TADM and the WIPO Arbitration and Mediation Center. Only a settlement from a mediation administered by a designated provider, or conducted by a certified mediator, can be recorded under section 12. If your contract has a mediation clause, section 8 also lets a party ask the court to stay proceedings started in breach of it.

How do you make an offer of amicable resolution before suing?

You make it in writing, before filing, with a clear proposal and an acceptance period of at least 14 days. In practice it is often part of a letter of demand.

1. Gather the contract, invoices, delivery records, correspondence and a statement of account.
2. Decide what you would accept, including payment timing and non-money terms.
3. Send a letter of demand that sets out the claim and offers a settlement figure, a mediation (naming a provider such as the SMC), or both.
4. State an expiry date at least 14 days away. Under Order 5, Rule 2(4), an offer without an expiry date lasts until the court decides the merits, unless the offeror says otherwise.
5. Keep a dated record of the offer and any rejection, and ask for written reasons if it is rejected.
6. Only then instruct solicitors to file, unless there is a reasonable ground for urgency.

What documents should you prepare for mediation?

Bring everything that proves your position and the written authority to settle on the day. For State Courts mediation, the opening statement must reach the court no later than 2 working days before the first session.

How long does mediation take and what does it cost?

A State Courts mediation usually runs 1 to 3 sessions of about 3 hours each, and the official fee is nil or S$250 per party. Other costs vary, so the table states official figures only and describes the cost drivers.

If the case does go to trial, see our guide to court fees and legal costs in Singapore.

What does the company secretary prepare and what does the solicitor file?

The company secretary prepares internal approvals and records; the solicitor handles legal advice and everything filed with the court. Court proceedings, including any application connected with the mediation, are conducted by a Singapore Advocate and Solicitor.

A corporate service provider such as Raffles Corporate Services can draft the board resolution setting the representative’s settlement authority, extract the statement of account and invoices from the books, and update the registers and lodge ACRA filings if the settlement changes the shareholding, directors or other registered particulars. The solicitor advises on the claim, drafts the offer and opening statement, attends the mediation, drafts the settlement and files any court documents, including a section 12 application. If you need one, you can speak to a lawyer about your options.

What happens after a mediated settlement agreement is signed?

The company must perform the terms; how they are enforced depends on where the mediation took place and whether a court case had started.

• State Courts mediation: a judge records the terms in a settlement agreement, which may be drafted so that one party can enforce it as a court order if the other defaults.
• Commercial mediation with no court case: the settlement is a contract. Under section 12 of the Mediation Act 2017, any party may, with the consent of all other parties, apply to record it as an order of court within 8 weeks. The agreement must be in writing and signed by or on behalf of all parties. Once recorded, it is enforceable like a court judgment.
• International settlements: section 4 of the Singapore Convention on Mediation Act 2020 lets a party apply to the High Court to record an international settlement agreement as an order of court.
• A case already in court: parties usually ask for judgment on agreed terms; see our guide to consent judgments.
• Confidentiality: section 9 of the Mediation Act 2017 restricts disclosure of mediation communications, subject to exceptions such as seeking legal advice, and section 10 makes them inadmissible in evidence without permission.

File the signed settlement with the board minutes. If it involves a share transfer, a director stepping down or a change of registered particulars, the usual ACRA filing deadlines apply.

What are the common mistakes companies make with mediation?

1. Suing first and talking later, without a written pre-action offer or a reasonable ground for urgency.
2. Rejecting an offer with no written reasons.
3. Sending an offer with no expiry date, or one open for less than 14 days.
4. Sending a representative without written authority to settle.
5. Missing the first court mediation session; the Courts treat a party who fails to attend without valid reasons as unwilling to mediate, which may affect costs.
6. Using a mediator who is neither from a designated provider nor certified, so the settlement cannot be recorded under section 12.

Frequently asked questions

Is mediation compulsory before suing in Singapore?

Not strictly. You must consider amicable resolution and make an offer before suing unless you have reasonable grounds not to, and the court may order the parties to attempt amicable resolution. Skipping these steps without good reason risks costs penalties.

Can the court make my company pay costs even if we win?

Yes. Order 21, Rule 4 allows the court to reduce or disallow a successful party’s costs, or order it to pay costs, if it did not discharge its Order 5 duty.

Is what we say at mediation confidential?

Generally yes. The Singapore Courts state that State Courts mediation discussions are confidential and without prejudice, and sections 9 and 10 of the Mediation Act 2017 protect private mediations, subject to listed exceptions.

Can an SMC or SIMC settlement be enforced like a judgment?

Yes, if it is recorded as a court order under section 12 of the Mediation Act 2017, with the consent of all parties, within 8 weeks of the settlement or a longer period the court allows.

Our free tools help keep your compliance records in order while a dispute runs; see also Singapore Secretary Services. Primary sources: Rules of Court 2021, Mediation Act 2017 and the Singapore Courts guide to mediation.

Last reviewed: 25 October 2026. The Editorial Team, Raffles Corporate Services.