Arbitration in Malaysia is a widely used alternative dispute
resolution (ADR) mechanism for resolving commercial disputes. In
Malaysia, arbitration is governed by the Arbitration Act 2005,
which is based on the UNCITRAL Model Law. The Arbitration Act 2005
applies to both domestic and international arbitrations conducted
in Malaysia.
The Asian International Arbitration Centre (AIAC), formerly
known as the Kuala Lumpur Regional Centre for Arbitration (KLRCA),
is a major arbitration institution that facilitates domestic and
international arbitrations.
One of the advantages, among others, that parties can avail of
arbitration process is that, in arbitration there is significant
flexibility in conducting proceedings, allowing for a more
efficient and tailored process, particularly because parties can
agree on the rules governing the procedure. Further, the
confidentiality is one of the most important features of
arbitration in Malaysia.
