KUALA LUMPUR: The amendments to the Arbitration Act 2005 include provisions related to third-party funding, taking lessons from the Sulu Group’s claim against Malaysia, the Dewan Rakyat was told today.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said stated that the amendments ensure confidence that the country does not have issues with third-party funding in arbitration cases, but there must be due process and disclosure.
“Malaysia fell victim to third-party funding in the Sulu case. To this day, we know that the claimants are not financially capable but received external support from unidentified benefactors who have plenty of money and can take their claims to all international courts.
“We do support third-party funding in any international arbitration proceedings, but we want a full disclosure process. We believe in a ‘gentlemen’s strategy’ in legal terms, which means full disclosure (of information) without any concealment, and we have a code of ethics,“ she said.
She said this when winding up the debate on the Arbitration (Amendment) Bill 2024 at the Committee level before it was passed with a majority voice vote.
Additionally, Azalina said the amendments also aim to empower the role of the Asian International Arbitration Centre (AIAC), including the establishment of the AIAC Arbitration Court and ensuring that the president’s powers are not exercised unilaterally.
“This is part of the government’s initiative to elevate the stature of the AIAC and subsequently increase the number of Alternative Dispute Resolution (ADR) cases referred to Malaysia,“ she said.
The Dewan Rakyat also passed the Construction Industry Payment and Adjudication (Amendment) Bill 2024, which, among other things, aims to rename the Kuala Lumpur Regional Centre for Arbitration (KLRCA) to the Asian International Arbitration Centre.
