Arbitration Act amendments strengthening regime passed by Malaysia Parliament
27 August 2024
On 24 July 2024, the upper house of the Malaysian Parliament, the Senate (Dewan Negara), passed the Arbitration (Amendment) Bill 2024 (“AA Bill”) and the Construction Industry Payment and Adjudication (Amendment) Bill 2024 (“CIPAA Bill”) (collectively, “Bills”). The lower house, the House of Representatives (Dewan Rakyat), passed the Bills on 16 July 2024. The Bills will be presented for Royal Assent and become law upon their publication in the Federal Gazette of Malaysia.
The AA Bill will make various amendments to the Arbitration Act 2005, including changes relating to:
- form of arbitration agreement
- applicable law to arbitration agreement
- joint appointment of arbitrators for multiple parties
- introduction of the post “President of the AIAC Court of Arbitration”
- digital and electronic signatures
- recognition and enforcement of an award
- third party funding
The CIPAA Bill sets out amendments to the Construction Industry Payment and Adjudication Act 2012 stemming from the proposed changes to the arbitration regime.
This article by our associate firm in Malaysia, Rahmat Lim & Partners, sets out the key changes introduced by the Bills.