Parliament passes a bill to enforce international mediation settlements, aligning with the UN’s Singapore Convention to boost cross-border dispute resolution.
KUALA LUMPUR: The Dewan Rakyat passed the International Settlement Agreements Resulting from Mediation Bill 2025 by a majority voice vote.
The legislation was debated by 11 Members of Parliament before its approval.
Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M. Kulasegaran said the bill marks a strategic step to strengthen alternative dispute resolution mechanisms.
He stated the government aims to move beyond sole reliance on traditional court proceedings.
The bill supports Malaysia’s ratification of the United Nations Convention on International Settlement Agreements Resulting from Mediation.
Malaysia signed this pact, better known as the Singapore Convention, back in 2019.
Kulasegaran explained that the existing Mediation Act 2012 applies mainly to domestic disputes.
These include accident insurance claims, family matters, defamation, commercial contracts and intellectual property cases.
“Although the Act can be applied to international cases, settlement agreements reached through mediation are only binding on the parties and enforceable under contract law, with no direct enforcement mechanism,” he said.
The new UN Convention provides a harmonised framework for recognising and enforcing international mediation settlements.
Hence, the bill establishes the necessary legal framework to fulfil Malaysia’s obligations under the convention.
This will facilitate the direct enforcement of international settlement agreements within the country.
Kulasegaran said the move will promote mediation as an effective means of resolving cross-border commercial disputes.
