MALAYSIA'S ASEAN CHAIRMANSHIP TO ENHANCE REGION’S REPUTATION AS ARBITRATION DESTINATION - AZALINA

KUALA LUMPUR, Nov 13 (Bernama) -- With Malaysia set to assume the ASEAN Chairmanship in 2025, the country is well-positioned to enhance the region's reputation as a leading destination for effective alternative dispute resolution (ADR).

Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said this vision would require multilateral partnerships among ASEAN member states supported by government officials, arbitral institutions, legal practitioners, and industry stakeholders.

“Together, we can reaffirm our commitment to upholding the rule of law, broadening access to justice, and delivering equitable outcomes through effective ADR mechanisms.

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“Enhancing these partnerships will elevate the quality of our services and ensure that our frameworks are globally recognised and respected,” she said in the keynote address at the Kuala Lumpur Forum on the International Arbitration here, today.

Azalina pointed out that access to justice through an efficient ADR mechanism is essential for a fair and reliable commercial environment, with methods like arbitration and mediation offering effective, equitable, and inclusive solutions.

She further explained that the ASEAN region’s unique strengths can greatly enhance the success of ADR, delivering significant economic benefits and acting as a catalyst for regional growth.

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“Our diverse legal systems, spanning common law, civil law, and hybrid frameworks present opportunities to align arbitration and mediation practices with global standards.

“This includes The United Nations Commission on International Trade Law (UNCITRAL) Model Law, New York Convention, and Singapore Convention, creating consistent and seamless cross-border procedures that enhance regional business predictability and efficiency,” she said, adding that this would attract foreign investment and further position ASEAN as a global leader in arbitration and mediation.

Azalina said Malaysia also offers a comprehensive and arbitration-friendly framework that serves a diverse range of industries from halal and Islamic finance to sports law and international trade.

She highlighted that with a pro-arbitration judiciary, strong institutional support from the Asian International Arbitration Centre (AIAC), and a seamless enforcement mechanism, Malaysia is not only a competitive jurisdiction but also a safe, reliable, and efficient arbitration hub.

“Whether you are seeking Syariah-compliant dispute resolution, international commercial arbitration, or a sports-related settlement, Malaysia’s legal infrastructure, professional expertise, and institutional innovation make it a preferred choice for arbitration in the region,” she said.

She emphasised the importance of integrating innovations like artificial intelligence (AI) into ADR, highlighting its potential to enhance efficiency, reduce costs, and simplify complex processes.

However, she stressed that this integration must not undermine the integrity, impartiality, and fairness that are fundamental to ADR.

She urged her ASEAN counterparts to explore regional cooperation on an AI roadmap for ADR, ensuring that innovation upholds shared principles and enhances the region’s position in global arbitration.

"This forum will serve as a platform to discuss the best ways to integrate AI into international arbitration, balancing the enhancement of efficiency and preserving integrity,” she added.

The 2024 Kuala Lumpur Forum on International Arbitration, themed “The Future of International Arbitration: Reforms and Innovation”, is jointly organised by the Legal Affairs Division, Prime Minister's Department, and the AIAC.

-- BERNAMA