Arbitration whereby parties have their disputes determined by impartial individuals chosen or agreed by them outside the national court systems is encouraged in Malaysia and given statutory force in the Arbitration Act 2005. Giving effect to the principles set out in UNCITRAL Model Law on International Commercial Arbitration 1985, the Act reflects international consensus on arbitration law and practice and establishes a special regime for the resolution of international and domestic disputes. It covers all stages of the arbitral process from the arbitration agreement, composition and jurisdiction of the arbitral tribunal, conduct of arbitral process, the residual power and extent of court intervention, recourse against an award through to recognition and enforcement. Unless contrary to public policy, the any subject matter can be determined by arbitration.
Malaysia is a state party to the New York Convention, an international treaty with over 140 member nations facilitating a uniform mechanism for the recognition and enforcement of arbitral awards in member states. National courts are required to aid and not interfere with the arbitral process (except on restricted grounds) and empowered to stay court proceedings brought in violation of a valid arbitration agreement. Maritime claimants, through the High Court’s admiralty process, may proceed to arrest ships owned by defendants found in Malaysian waters to secure their claim in pending arbitration proceedings.
The Partners of the Firm regularly act as arbitrators or counsels for parties in maritime related disputes in both domestic and international arbitration, and in particular, are experienced in the conduct of institutionalized arbitration held under the auspices of the International Chamber of Commerce (ICC); Palm Refiners Association of Malaysia (PORAM); London Maritime Arbitrators Association (LMAA); Federation of Oils, Seeds and Fats Association, London (FOSFA); Kuala Lumpur Regional Arbitration Centre (KLRCA) and Singapore International Arbitration Centre (SIAC).
The Firm frequently is called upon to institute admiralty arrest of defendant’s vessel to obtain security pending arbitration proceedings; for registration and enforcement of foreign arbitral awards and for resisting foreign arbitral awards in Malaysia where circumstances allow.
The information herein is for general guidance only, may have been superseded, circumstances may have changed and does not in any way represent or replace professional legal advice which must be obtained in each individual case.