MALAYSIA Law and Practice Contributed by: Rabindra S. Nathan, Rodney Gomez, K. Shanti Mogan and Alexius Lee, Shearn Delamore & Co
upon application to the court, irrespective of the coun - try in which they are issued (see CRCC Malaysia Bhd v DSG Projects Malaysia Sdn Bhd [2023] 9 MLJ 713). The AIAC Arbitration Rules 2026 continue to provide for emergency arbitrators; virtual or documents-only emergency arbitration proceedings are permitted, as are ex parte proceedings. Emergency arbitrators are permitted to rule on their own jurisdiction. The Malaysian courts do not have the power to inter - vene in arbitration proceedings once an emergency arbitrator – who has the same powers as any arbitrator under the AA 2005 – has been appointed (see Sec - tion 19J(3) AA 2005), except in situations specifically provided by the AA 2005, such as determination of an appeal against the emergency arbitrator’s ruling of an unsuccessful challenge to the arbitral tribunal. Interim relief by the courts is permissible both before and after an emergency arbitrator has been appointed. 6.3 Security for Costs Malaysian law confers concurrent jurisdiction on both courts and arbitral tribunals to make an order for secu - rity for costs as an interim measure upon an applica - tion for such. As outlined in 6.2 Role of Courts , an application for security for costs should first be made to the arbitral tribunal ( Malaysia Resources Corpo- ration Bhd v Desaru Peace Holdings Club Sdn Bhd [2023] 4 CLJ 91). The parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting the arbi - tration (see Section 21 AA 2005). Such procedural rules can be ad hoc or institutional. The most com - monly adopted institutional rules in Malaysia are the AIAC Arbitration Rules. If parties fail to agree on the procedural rules, the arbi - tral tribunal will become the master of the proceed - ings, upon which it will be empowered to determine matters such as the time and place of proceedings, the time limits for pleadings and written submissions 7. Procedure 7.1 Governing Rules
as well as the taking of evidence (see Section 21 (2) AA 2005). 7.2 Procedural Steps Regardless of the applicable procedural rules, the claimant is in law required to submit a statement of claim containing the facts supporting its claim, the points in issue and the relief or remedy sought from the arbitration after the commencement of arbitration and within the period of time agreed by the parties or determined by the arbitral tribunal. The respondent to the arbitration shall then state its defence in respect of the particulars set out by the claimant. Together with the submissions of the parties’ state - ment of claim and defence, the parties may further submit any document they consider relevant or add a reference to the documents or other evidence that they may submit. The arbitral tribunal will then decide whether to hold oral hearings for the presentation of evidence or oral arguments, or to conduct the proceedings on the basis of documents and other materials. If any party applies for the arbitral tribunal to hold oral hearings at an appropriate stage of the proceedings, it is manda - tory for the arbitral tribunal to hold such oral hearings (see Section 26 AA 2005). 7.3 Powers and Duties of Arbitrators Powers of Arbitrators In Malaysia, arbitrators are granted the following pow - ers. • To rule on their own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. • To order interim measures as described in 6.1 Types of Relief . • To conduct the arbitration in such manner as they consider appropriate if no procedure is agreed upon by the parties (as described in 7.1 Governing Rules ), which includes the powers to: (a) determine the admissibility, relevance, materi - ality and weight of any evidence; (b) draw on their own knowledge and expertise; (c) order the provision of further particulars in a statement of claim or statement of defence;
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