Dr Colin Ong
Managing Partner
Business Services / Brunei Darussalam
A common ground in ASEAN
Dr Colin Ong Legal Services is one of few commercially focused law firms in Brunei and has been consistently listed as a leading banking, arbitration, construction, and commercial law firm by independent legal publications. Moreover, it is the only law firm engaged as lead counsel in the country. Managing Partner Dr Ong explains Brunei’s legal environment and his role in promoting an arbitration mechanism for China-ASEAN parties.
How would you describe the ease of doing business in Brunei?
It has improved a lot in the last year but there are still areas that need further improvement. For example, under the Constitution, the Brunei Government is immune from suit before the Brunei court system and all disputes must be subjected to arbitration. Such disputes are held under the Arbitration Association Brunei Darussalam, which is independent from the government, but it needs more funding as its currently supported by patriotic volunteers.
What makes Brunei’s legal environment distinct?
There are two parallel systems of law in Brunei. Statutory laws, which regulate commercial activities, are largely based on English common law. As a result of the introduction of the Sharia Penal Code Order in 2013, the second independent system is based on Sharia law.
As the role of lead councel, how are you representing Brunei in China?
Last November, I went to China to put forward a possible commerical arbitration-based dispute resolution mechanism for countries who will be affected by the “One Belt, One Road” initiative. It is desirable to have a settlement mechanism in place to resolve business disputes between China and ASEAN parties. Ideally, China-ASEAN Free Trade Area countries should set up a panel of arbitrators in up to five years, with a permanent aribitration center for non-governemnt disputes in Hong Kong and government-to-government disputes held in Jakarta at the ASEAN Secretariat. However, this mechanism cannot be used to resolve existing disputes unless the countries jointly agree to enter into arbitration.
What system of law should govern such dispute panels?
Parties should be free to choose their preferred law in contracts and the United Nations Rules of Arbitration should be selected as the default rules under this scheme.
