KUALA LUMPUR: The Arbitration (Amendment) Bill, which saw its second and third reading today, received the nod from Dewan Rakyat.
Minister in Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said the passing of the amendment will see the implementation of the restructuring initiative of the Asian International Arbitration Centre (AIAC) since its establishment in 1978.
She said the restructuring would enhance AIAC's governance through the adoption of the separation of powers concept and comprehensive checks and balances mechanisms within AIAC's administrative system.
"Among the initiatives implemented (in the restructuring process) are the institutionalisation of the AIAC advisory board, the establishment of the AIAC Arbitration Court responsible for handling alternative dispute resolution (ADR) cases independently, as well as the comprehensive development of the ADR industry, including in Sabah and Sarawak.
"Through the implementation of these initiatives, it is hoped that the global community's confidence in the AIAC as the main arbitration centre can be enhanced, in line with its status as an international body under the Asian-African Legal Consultative Organisation (AALCO) and strengthening Malaysia's position as a global hub for ADR," Azalina said during the tabling of the bill in Dewan Rakyat, today.
She also said the Legal Affairs Division alongside AIAC through a task force conducted several series of engagement sessions to ensure that the government's amendment efforts are comprehensive, aligned with contemporary international standards and meet the needs of the arbitration industry in Malaysia.
Based on the blue book circulated in Parliament, the bill proposed will improve the organisational structure of AIAC, in line with the execution of the Supplementary Agreement between the government of Malaysia and AALCO relating to AIAC in Kuala Lumpur dated Feb 20.
The bill will also harmonise the provisions in the Act with the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration (UNCITRAL Model Law) and by introducing provisions on third-party funding.
At the same time, the bill also introduces a new section which seeks to provide for the disclosure of a third-party funding agreement by the funded party to the other party to the arbitration, the arbitral tribunal and the court.
Following this, the Construction Industry Payment and Adjudication (Amendment) Bill was tabled yesterday which is yet to be approved by the Dewan Rakyat.