MALAYSIA Law and Practice Contributed by: Rabindra S. Nathan, Rodney Gomez, K. Shanti Mogan and Alexius Lee, Shearn Delamore & Co
in respect of the arbitration, within 25 days after the third-party funding agreement is made. The Code of Practice for Third Party Funding 2026 also came into operation on 1 January 2026 and sets standards on matters including capital adequacy, con - flicts, confidentiality, control, costs liability, termina - tion and due diligence. Rule 31 of the AIAC Arbitration Rules 2026 also requires disclosure of the existence of the funding agreement and the funder’s identity, and allows the tribunal to consider compliance when making orders, awards or costs decisions. 13.4 Consolidation An arbitral tribunal may consolidate separate arbitral proceedings, provided that the parties agree to confer such power on the arbitral tribunal. Section 40 of the AA 2005 confers express power on the arbitrator to consolidate proceedings in such circumstances.
The court will not be able to exercise this power to consolidate separate arbitral proceedings under Sec - tion 40 of the AA 2005 ( Ragawang Corporation Sdn Bhd v One Amerin Residence Sdn Bhd [2020] 1 LNS 895 (High Court)). For AIAC-administered arbitrations, Rule 8 of the AIAC Arbitration Rules 2026 now provides a detailed insti - tutional mechanism for consolidation before the con -
stitution of the arbitral tribunal. 13.5 Binding of Third Parties
Generally, an arbitral award pursuant to an arbitration agreement is only binding on the parties to the arbitra - tion agreement. The national court does not have the ability to bind foreign third parties.
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