Originally from Investor-State Arbitration--Lessons for Asia

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The bilateral investment treaties (“BITs”) in a number of South-East Asian countries accord investment protection only if the investments are approved by the state. This limitation creates dual categories of foreign investments in respect of the state, one that is protected by BITs because of the approval of the investment by the state and the other which is not because there is no such state approval.

This paper will discuss the state approval in selected South-East Asian countries and consider relevant decisions on the interpretation of such clauses in the respective BITs.

Bilateral Investment Treaties in South-East Asia Malaysia, Singapore, Thailand, the Philippines and Indonesia, have differing provisions with regard to state approval in their BITs.

There is set out below selected clauses from the BITs of some South East Asian countries.