Going to Malaysia to arbitrate your international commercial disputes

Malaysia

Country:

  • Malaysia

Overview:

  • Malaysia is an international arbitration friendly country
  • Malaysia offers specialised arbitration in respect to Islamic Banking

Malaysian International Commercial Arbitration Legislation:

  • Malaysia has its own domestic legislation (lex arbitri) for the regulation of international commercial arbitration
  • The Malaysian lex arbitri is the Arbitration Act 2005

UNCITRAL Model Law:

  • While the Arbitration Act 2005 closely follows the UNCITRAL Model Law, there are a number of differences. These differences include:
    • The application of the arbitration Act 2005 to both international and domestic arbitration; and
    • The inclusion of additional provisions relating to arbitration (see Part III), which are not included in the UNCITRAL Model Law

UNCITRAL International Arbitrations Rules:

  • There is no restriction in Malaysia in respect to the application of foreign international commercial arbitration rules (see section 21 of the Arbitration Act 2005)

Enforcement of International Commercial Arbitration Awards:

  • Malaysia ratified the United Nations Conference on International Commercial Arbitration Convention on the Recognition and Enforcement of Foreign Arbitral Awards
  • Malaysia made two reservations. Malaysia will apply the Convention only:
    • To the recognition and enforcement of awards made in the territory of another contracting State; and
    • To differences arising out of legal relationships, whether contractual or not, that are considered commercial under Cypriot law.

Malaysia International Commercial Arbitration Institutions:

Malaysian International Commercial Arbitration Venues

Malaysia International Commercial Arbitration Rules:

Other International Commercial Arbitration Institutions:

  • There is no restriction in Malaysia in respect to foreign international arbitration institutions conducting international commercial arbitrations in Malaysia (see Chapter 13 of the Arbitration Act 2005)
  • The Kuala Lumpur Regional Centre for Arbitration website states that the Centre will accommodate arbitrations conducted by the following institutions:
    • Arbitration Chambers, Singapore
    • American Arbitration Association
    • Hong Kong International Arbitration Centre
    • International Chamber of Commerce (ICC)
    • Japan Commercial Arbitration Association
    • Korean Commercial Arbitration Board
    • London Court of International Arbitration
    • Permanent Court of Arbitration (PCA)
    • Singapore International Arbitration Centre
    • Singapore Academy of Law
    • Bogota Chamber of Commerce Arbitration and Conciliation Centre

    • American Arbitration Association (AAA)
    • Arbitration Office, Ministry of Justice, Thailand
    • Australian Centre for International Commercial Arbitration (ACICA)
    • Australian Commercial Disputes Centre (ACDC)
    • Chartered Institute of Arbitrators, Malaysia Branch (CIArb)
    • Commercial Arbitration Association of the Republic of China
    • Hong Kong International Arbitration Centre (HKIAC)
    • Indian Council of Arbitration (ICA)
    • Institute Kelautan Malaysia (IKMAL)
    • International Centre for Settlement of Investment Disputes (ICSID)
    • Islamic Chamber of Commerce & Industry & Commodity Exchange (ICCIC)
    • Japan Commercial Arbitration Association (JCAA)
    • Korean Commercial Arbitration Board (KCAB)
    • Scottish Arbitration Council
    • Swiss Arbitration Association (ASA)
    • The Arbitration Centre of the Institute for the Development of Commercial Law and Practice, Sri Lanka (ICLP)
    • The Chartered Institute of Arbitrators, England
    • The Foreign Trade Arbitration Court of the Mongolian Chamber of Commerce and Industry
    • The Malaysian Institute of Arbitrators (MIArb)
    • The Permanent Court of Arbitration attached to the Chamber of Commerce and Industry of Slovenia
    • Tokyo Maritime Arbitration Commission (TOMAC)
    • Preferential Trade Area for Eastern & Southern African States Centre for Commercial Arbitration, Djibouti (PTA)
    • Vietnam International Arbitration Centre (VIAC)
    • Dubai International Arbitration Centre (DIAC)
    • Institute of Arbitrators & Mediators Australia (IAMA)

Other International Commercial Arbitration Rules:

  • There is no restriction in Malaysia in respect to the application of foreign international commercial arbitration rules (see section 21 of the Arbitration Act 2005)

International Commercial Arbitration Guidelines:

  • There is no restriction in Malaysia in respect to the use of foreign international commercial arbitration guidelines – for example, International Bar Association (IBA) Guidelines, Chartered Institute of Arbitrators Guidelines, UNCITRAL Notes, etc (see section 21 of the Arbitration Act 2005 )

Place (or seat) of arbitration:

  • There is no restriction in Malaysia in respect to the place or seat of the arbitration (see section 22 of the Arbitration Act 2005)

Substantive Law:

  • There is no restriction in Malaysia in respect to the rules applicable to substance of dispute for international commercial arbitration (see subsections 30(2) and 30(3) of the Arbitration Act 2005)

Representation:

  • There is no specific restriction in the Arbitration Act 2005 against foreign representatives appearing for their respective clients before an international commercial arbitration Tribunal in Malaysia (otherwise see the Malaysian Legal Profession Act)

Useful Links:

  • TBA

New Zealand

Contact details

Telephone: 0508 899 721
Facsimile: 0508 899 723

Suite 25
Floor G
Panama House
22 Panama Street
Wellington 6011
New Zealand