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Malaysia aims to become global hub for alternative dispute resolution

KUALA LUMPUR: Malaysia’s aspiration to become a neutral, credible and global hub for alternative dispute resolution is no longer a distant goal but an attainable reality.

Deputy Prime Minister Datuk Seri Fadillah Yusof said the nation’s readiness, strategic location at the heart of ASEAN and cultural and legal sophistication support this ambition.

He noted Malaysia’s position along the world’s busiest trade corridors provides a unique advantage in bridging East and West.

“Our pro-arbitration judiciary, robust legal reforms and multicultural professional community provide the bedrock of neutrality and trust,“ he said in his executive address at Asia ADR Week 2025.

“Indeed, Malaysia’s diversity is our greatest strength, it allows us to appreciate and harmonise differences, which is the very essence of ADR.”

Fadillah commended Minister in the Prime Minister’s Department Datuk Sri Azalina Othman Said for her vision in driving Malaysia’s legal and ADR transformation.

He launched the Asian International Arbitration Centre’s Suite of Rules 2026, marking a significant milestone in strengthening Malaysia’s ADR framework.

The launch together with the establishment of the AIAC Court of Arbitration marks a new chapter of institutional independence and procedural excellence.

Fadillah said ADR offers a path of dialogue over discord and collaboration over confrontation in a world often defined by conflict.

“It reflects the very values that define the Malaysia MADANI vision – inclusivity, compassion, and shared responsibility,“ he said.

“ADR gives that ability form, structure, and purpose, transforming disputes into dialogue, and friction into progress.”

He highlighted that neutrality, integrity and credibility have become the defining benchmarks for trusted arbitration across Asia and beyond.

The Arbitration (Amendment) Act 2024 and the Construction Industry Payment and Adjudication Act (Amendment) Act 2024 represent a major leap forward.

These transformational reforms position Malaysia at the forefront of the global ADR landscape while preserving national character.

Fadillah emphasised that accessibility, transparency and trust remain the lifeblood of Malaysia’s dispute resolution system. – Bernama

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