Tacit Choice of Law in International Commercial Contracts – The Position in Indonesian, Malaysian and Singaporean Private International Law

Abstract

The Association of Southeast Asian Nations (ASEAN) has achieved remarkable economic progress in recent times. Furthermore, intra-ASEAN trade is considerably larger than any other market for the ASEAN Member States. The growth of international trade and commerce within ASEAN is likely to increase. This will undoubtedly create numerous opportunities for private enterprises in the region to conclude business with one another. As such, the need for certainty regarding the rules and principles of private international law within the organisation’s Member States is imperative. This article analyses choice of law in international commercial contracts in three of ASEAN’s biggest economies, namely Indonesia, Malaysia and Singapore. More specifically, the article examines the determination of a tacit choice of law in Indonesian, Malaysian and Singaporean private international law. Attention is devoted to the level of strictness of the criterion for inferring a choice of law and the factors that have been relied upon, as well as the weight that has been attached to these factors.