MALAYSIA Law and Practice Contributed by: Dhinesh Bhaskaran, Rabindra Nathan, Shanti Mogan and Lai Wai Fong, Shearn Delamore & Co
ment and the duly authenticated original award or, in either case, a duly certified copy thereof. Once the application is allowed, the order giving permission to enforce the award shall be served on the respondent by delivering a copy to them personally or by sending a copy to them at their usual or last known place of residence or busi- ness. Within 14 days after the service of the order, the respondent may apply to set it aside. The award shall not be enforced until after the expiration of that period or until after the respondent’s appli- cation (if filed) has been finally disposed of. See Order 69 Rule 8. 14. Outlook 14.1 Proposals for Dispute Resolution Reform There are no current proposals for dispute reso- lution reform in Malaysia. 14.2 Growth Areas The primary area of growth for commercial dis- putes is the increasing use of ADR (see 12. Alter- native Dispute Resolution (ADR) ). The increase in awareness among businesses and legal pro- fessionals of the advantages of ADR has led to a broader acceptance and integration of these methods. Some of the trends illustrating this growth are outlined below. There is a noticeable rise in the adoption of mediation and arbitration to resolve commercial disputes, driven by the desire for cost-effective and timely outcomes.
Institutions like the Asian International Arbitra- tion Centre (AIAC) in Kuala Lumpur have signifi- cantly enhanced their services to cater to spe- cific types of disputes, including construction and technology. For example, the AIAC’s Standard Form of Build- ing Contracts (SFC) addresses gaps in existing Malaysian construction contracts. This free and customisable suite offers clear terms, dispute resolution mechanisms such as mediation, and introduces a “contract administrator” to ensure checks and balances while aligning with legal standards like the Arbitration Act 2005 and the Construction Industry Payment and Adjudication Act 2012. The SFC’s unified contract structure supports party autonomy, includes anti-bribery measures and aims to reduce conflicts and pro- ject deadlocks. The AIAC has also updated its general Arbitra- tion Rules to accommodate complex commer- cial disputes, including provisions for multi-party and multi-contract arbitration, joinder of addi- tional parties and consolidation. These updates enhance the flexibility of arbitration across sec- tors such as banking, finance, construction and technology. Courts are increasingly encouraging mediation as an initial step in dispute resolution to help alleviate case backlogs and promote quicker settlements. The rise of online dispute resolution platforms is accelerating due to business digitalisation. These platforms facilitate online mediation and arbitration, making ADR more accessible and efficient, especially for cross-border disputes, thereby meeting the growing need for modern and flexible dispute resolution solutions.
897 CHAMBERS.COM
Powered by FlippingBook