It is a norm today for an arbitration clause to be incorporated in a commercial agreement in Malaysia.

The passing of Arbitration (Amendment) Act 2018 leads to an evolvement of Kuala Lumpur Regional Centre for Arbitration (KLRCA) into Asian International Arbitration Centre. Furthermore, a signing of agreement between the Asian-African Legal Consultative Organisation (AALCO) and the Government of Malaysia that took place later marks a greater step forward for Arbitration and Alternative Dispute Resolution ( ADR ) Community.

The procedures of Arbitration is now govern under the AIAC Arbitration Rules 2018. Arbitration proceedings appears to more user friendly compared to civil court proceedings. Civil litigation in Malaysia on the contrary is adversarial in nature, hence the judge lack of expertise in the particular field in dispute coupled with the evidential burden of proof and strict rules may not produce a win-win situation for the parties.

Majority of disputes today can go through arbitration proceedings for resolution. Arbitration is less time consuming and the case will be adjudicated by an arbitrator who may be an expert in that particular field. Both parties has the right to appoint arbitrator and determine the numbers of arbitrator. Moreover, an arbitrator may be challenged if circumstances exist that give rise to justifiable doubts as to the arbitrator’s impartiality or independence. Both parties may stand a greater advantage and might be able to achieve a more satisfactory outcome for the matter in dispute if is heard by an arbitrator chosen by both parties.

Experts from our firm offer consultation services on dispute over arbitration and representation in arbitration proceedings.