10 April, 2018
The Asian International Arbitration Centre (Malaysia) (AIAC) is pleased to announce that the Malaysian Parliament has passed the Arbitration (Amendment) (No.2) Bill (2018). The AIAC would like to thank the Government of Malaysia led by Datuk Seri Najib Tun Razak, Prime Minister of Malaysia, Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department in charge of Legal Affairs, and Datuk Seri Razali Ibrahim, Deputy Minister in the Prime Minister’s Department, for this initiative. The bill is to set to receive royal assent and will be effective on a date to be notified by gazette.
The proposed amendments to the Arbitration Act 2005 is substantial and are a reflection of the 2006 amendments to the United Nations Commission on International Trade Law Model on International Commercial Arbitration (“UNCITRAL Model Law”). The modern amendments to the Arbitration Act will provide Malaysia a competitive edge to become a destination for international arbitration. The recent name change of the Asian International Arbitration Centre (Malaysia), revision of Rules along with the commitment of the Government in amending the legislation clearly establishes Malaysia as a forerunner for Alternative Dispute Resolution in the region.
There are many salient features to the proposed amendments including parties’ choice to choose representation by any representative, and the provision of a framework for the recognition of arbitration agreements made in electronic forms. In addition to that, the amendment gives the tribunal the power to provide interim measures, and recognition and interim awards enforcement mechanism. Another key feature is the express addition of confidentiality clauses thereby enhancing Malaysia’s status as a safe seat.
We would like to once again extend our heartiest congratulations to the Government of Malaysia led by Datuk Seri Najib Tun Razak, Prime Minister of Malaysia, Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department in charge of Legal Affairs and Datuk Seri Razali Ibrahim, Deputy Minister in the Prime Minister’s Department for the initiative and commitment to promote alternative dispute resolution in Malaysia.
The AIAC is also grateful for the support of the Chairman of the AIAC Advisory Board Tan Sri Apandi Ali and the Attorney General’s Chamber for the support and assistance in this ambitious endeavour.
The AIAC is confident that the passing of the said legislation will pivot Malaysia as a safe seat and with continued effort and impetus from AIAC, Malaysia is set to become a global hub for Alternative Dispute Resolution.
