THERE are many reasons why you should conduct your arbitration at the Asian International Arbitration Centre (AIAC) in Kuala Lumpur
The AIAC is at the leading edge in Asian and Malaysian international arbitration.
It is located in one of the most iconic heritage buildings of Malaysia, the Bangunan Sultan Sulaiman in Kuala Lumpur.
This beautiful and huge structure sits beside and opposite two equally conspicuous colonial buildings: the old central railway station and the colonial-era Majestic Hotel.
The AIAC provides a wide range of alternative dispute resolution products.
It provides state-of-the-art facilities, that too at an affordable price.
It houses 24 hearing rooms, two huge hearing auditoriums, a business centre and an arbitrator’s lounge.
Electronic and internet speeds are super-fast. Parties and counsel have the option to conduct hearings physically, virtually or in a hybrid format.
AIAC has a huge, world-class specialised alternate dispute resolution and construction law library that is open to the public. There are ample free parking spaces for visitors.
Therefore, it is no surprise that the Global Arbitration Review has given the top rank to AIAC’s facilities.
My own view is that it would be cheaper for parties from India and China or Japan to take a flight to Kuala Lumpur and arbitrate their dispute at the AIAC compared with the costs of even arbitrating in their own countries. Imagine that.
Beyond that, several factors place AIAC as Asia’s arbitration focal point.
For a start, the fantastic Malaysian cuisine.
Second, consider the 24-hour effective transport system.
Third, the Malaysian judiciary is respectful of arbitral decisions.
Fourth, the government is supportive of arbitration and arbitrators.
Fifth, think about how cheap it is to arbitrate in Malaysia. And legal costs are cheap.
The cost of five-star hotels is far below that in other international capitals. The weather is excellent.
These are the major incentives to arbitrate at the AIAC.
I once participated as counsel in a huge arbitration and it was in a neighbouring country.
Despite all the hype, seating arrangements for over 15 legal counsels were cramped. Food outlets were too far away, with people having to take the LRT just to get lunch.
Contrast that with the AIAC. All you need to do is to step out of the AIAC and there is world-class food available just across the road at Majestic Hotel.
For the uninitiated, the AIAC was previously known as the Kuala Lumpur Regional Centre for Arbitration or KLRCA.
In 2018, on its 40th anniversary, KLRCA changed its name to the AIAC.
It was established on April 17, 1978, as an independent, supra-national arbitral institution with its own juridical personality.
It was set up under the auspices of the Asian-African Legal Consultative Organisation or AALCO.
This rebranding was reflective of AIAC’s international standing, the broad sweep of its services and its proven ability to handle international disputes.
The AIAC is accorded certain privileges and immunities under the International Organisations (Privileges and Immunities) Act 1992 for the purposes of executing its functions.
This one feature sets the AIAC apart from other arbitral institutions in the region because, under the law, it is an independent international organisation.
As such, international parties can confidently arbitrate their disputes at the AIAC.
The centre is led by its director Datuk Sundra Rajoo, who has a wealth of expertise and experience.
He was pivotal in promoting Malaysia as a major arbitration hub during his previous eight-year stint up until 2018 as director of the AIAC.
Sundra has also authored several practitioners’ texts in international and local arbitration.
On March 16, the government, in consultation with AALCO, re-appointed Sundra as its director.
On his return, Sundra was asked to re-establish AIAC’s strong international presence in the alternative dispute resolution community.
Sundra has often stated that AIAC is committed to capacity-building exercises that will benefit the international arbitration community.
I hope this has given you a brief insight into the crucial role the AIAC plays in establishing Malaysia as the preferred venue for alternative dispute resolution.
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