Arbitration Procedures and Practice in Malaysia: Overview

Feb 17, 2020
Legal

Making Sense of Arbitration in Malaysia

Welcome to the comprehensive overview of arbitration procedures and practice in Malaysia, brought to you by Denaro Anthony D Atty. As a leading legal practice specializing in arbitration, we provide expert guidance and representation to clients engaged in arbitration proceedings in Malaysia.

Understanding the Malaysian Legal System

Before delving into the details of arbitration, it is crucial to understand the Malaysian legal system. Malaysia follows a dual-track legal system, consisting of civil law and Islamic law. The civil law system is primarily derived from English common law, while Islamic law governs matters related to personal status and family law for the Muslim population.

The Role of Arbitration in Malaysia

Arbitration plays a vital role in the resolution of disputes in Malaysia. It provides an alternative to traditional litigation and offers numerous advantages, including confidentiality, flexibility, and the ability to choose specialized arbitrators with relevant industry knowledge. Arbitration is widely used in both domestic and international disputes, covering a broad range of sectors including commercial, construction, and investment disputes.

Malaysian Arbitration Act

The Malaysian Arbitration Act governs arbitration proceedings in Malaysia. It is based on the UNCITRAL Model Law, which ensures international standards of arbitration practice are followed. The Act provides a robust legal framework for arbitration, covering all stages of the process from the commencement of proceedings to the enforcement of arbitral awards.

Commencing Arbitration Proceedings in Malaysia

To commence arbitration proceedings, parties must include an arbitration clause in their contracts or agree to arbitrate after a dispute arises. The arbitration clause should specify the seat of arbitration, which determines the procedural law that will apply. Parties can also agree on the number of arbitrators and the arbitral institution to administer the proceedings.

The Arbitration Process

The arbitration process in Malaysia typically consists of the following stages:

1. Commencement of Proceedings

Once the arbitration process is initiated, the parties will agree on the arbitrators and the procedural rules. The claimant will then submit a statement of claim outlining their position, and the respondent will have the opportunity to respond with a statement of defense.

2. Appointment of Arbitrators

The appointment of arbitrators is a crucial step in the arbitration process. The arbitrators must be impartial and independent, possessing the necessary qualifications and expertise to decide the dispute. In Malaysia, arbitrators are often selected from arbitrator panels provided by reputable arbitral institutions.

3. Preliminary Hearing

A preliminary hearing is conducted to address procedural matters, clarify issues, and set the timetable for the arbitration proceedings. It provides an opportunity for parties to raise any preliminary objections or procedural challenges.

4. Submission of Evidence

During this stage, parties will present their evidence, including witness statements, expert reports, and any documentary evidence to support their respective positions. The arbitrators will evaluate the evidence presented and may also conduct site visits or expert inspections, if necessary.

5. Hearings and Submissions

Arbitration hearings are conducted to allow parties to present their case orally. Each party will have the opportunity to make submissions, examine witnesses, and cross-examine opposing witnesses. The hearings provide a platform for parties to articulate their arguments and respond to any queries from the arbitrators.

6. Award and Enforcement

Following the conclusion of the hearings, the arbitrators will deliberate and render their final award. The award will be in writing and include the reasons for the decision. Once the award is issued, parties can seek its enforcement through the Malaysian courts if necessary.

Why Choose Denaro Anthony D Atty for Arbitration in Malaysia

Denaro Anthony D Atty has established a strong reputation in the field of arbitration in Malaysia. Our team of experienced lawyers and arbitrators possess in-depth knowledge of the Malaysian legal system and extensive experience in handling arbitration cases across various industries. We are committed to providing our clients with personalized, strategic advice and representation throughout the arbitration process, ensuring their best interests are protected.

Contact Us Today for Expert Arbitration Assistance

If you require assistance with arbitration procedures and practice in Malaysia, look no further than Denaro Anthony D Atty. Contact us today to schedule a consultation with our team of experienced legal professionals. We are ready to guide you through the complexities of arbitration and help you achieve a favorable resolution to your dispute.

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