Kuala Lumpur Regional Centre for

Arbitration

Smrithi Ramesh

Deputy Head of Legal Services

Kuala Lumpur Regional Centre for Arbitration

The Asia-Pacific Regional Arbitration Group

Conference 2016

What is the KLRCA? The Kuala Lumpur Regional Centre for

Arbitration is the only regional, independent,

neutral, international comprehensive Alternative

Dispute Resolution Centre for the Asia-Pacific

Region. ( AALCO Centre).

Since the year 2010, KLRCA has gained from

strength to strength to emerge on par with other

international institutions in the world.

KLRCA is well on its way to establish itself and

Malaysia as a premier destination for foreign

investment and dispute resolution.

Focus of KLRCA is to promote inter-institutional

collaboration to ensure development of ADR in

the region.

Genesis of the KLRCA

The KLRCA was established in 1978 under the

auspices of the Asian-African Legal

Consultative Organization (AALCO), originally

known as Asian Legal Consultative Committee.

Set up pursuant to the Host Country

Agreement.

Government of Malaysia in 2010 provided

further impetus to revive and transform the

KLRCA to establish Malaysia as the premier

destination for dispute resolution and foreign

investment.

YB Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak launched the new

premises of KLRCA and had indicated his full support and patronage to further

the growth of ADR in Malaysia.

KLRCA’s Mission

Promote domestic and international commercial arbitration in the region.

Provide neutral, independent and international forum for resolution of disputes. Assist in the enforcement of arbitral awards. Provide for arbitration under its own auspices. Provide for local services of ADR such as Adjudication and Mediation Coordinate and assist the activities of existing arbitral institutions in the region. Foster synergies and strategic relations with ADR and industry specific organisations. Establish itself as an international organization providing comprehensive ADR services in Malaysia and across the world. Establish Malaysia as the premier ADR destination and a “safe seat” in the international arbitration regime.

KLRCA’s Advantages • Cost effective;

• Malaysia is a signatory to the New York Convention;

• Strong judicial support – doctrine of non-interference;

• Fly-in fly-out provision in Malaysia (no withholding taxes on arbitrators);

• Independent institution and Regional powerhouse with focus on ADR in the region.

• KLRCA enjoys immunity and privilege as an international organization under the International Organizations (Privileges and Immunities) Act 1992

• Sensitivity to local community needs and issues.

• Provides complete ADR services as opposed to other arbitral institutions across the world.

KLRCA Products and Services

KLRCA’s Arbitration Products

KLRCA Arbitration Rules

(as revised in 2013) KLRCA Fast Track Arbitration Rules

(as revised in 2013)

KLRCA i-Arbitration Rules

(as revised in 2013)

These rules are translated and available in eight(8) languages: English, Bahasa

Malay, Bahasa Indonesia, Arabic, Spanish, Korean, Russian and Mandarin

KLRCA Arbitration Rules

• Core business under the KLRCA;

• Cost effective rules;

• Intend to finish the dispute within one year;

• Embrace the UNCITRAL Rules;

• Provide a flexible proceeding scheme;

• Provides an option to go from Mediation to Arbitration

(Rule 14);

• The award will be released under the seat of a signatory

country of the NYC.

KLRCA Fast Track Arbitration Rules

• Expedite arbitration procedure;

• Intend to finish the dispute within 160 days;

• The dispute would last only 90 days if it is based on

documents only;

• The fees to be paid are lower since the costs are

capped;

• Provide a fast solution to a big arbitration dispute.

KLRCA i-Arbitration Rules

• Contain all the benefits of the KLRCA Arbitration Rules;

• Provide a Sharia complaint procedure, suitable for

disputes arising from commercial transactions premised

on Islamic principles;

• There is a procedure to refer to Shariah Advisory

Council or Shariah Expert (Rule 11);

• Created to fulfil the need of our stake holders;

• The KLRCA received the Innovation Award in 2012

because of it.

KLRCA Mediation Rules

• Provide a simplified appointment process;

• Since 15th July 2016, the Courts in Malaysia can refer

their disputes to mediation under the KLRCA;

• Intend to increase the number of cases referred to

mediation in Malaysia, as it is the case in other

jurisdictions

Surge in case load

0 100 200 300 400

2010

2013

2015

Total cases handled by KLRCA including arbitration ( domestic and international)

and adjudication

Vision and Goals of the KLRCA

Major Initiatives Undertaken

Domain Name Dispute Resolution

Arbitration of Sporting Disputes

Investor-State Arbitration

Maritime Law Society

Global KLRCA Internship Program

Co-operation Agreements

Promotion of mediation (Practice Direction 4 of 2016)

Training for arbitrators and adjudicators

First ever diploma course in Islamic Arbitration

Unique Selling Points Of The KLRCA

• State of the art premises: These premises ensure that KLRCA is geared for

international ADR services including hosting the Permanent Court of

Arbitration. It has also helped to put KLRCA and Malaysia on par with the

best international arbitration jurisdictions in the world;

• Established Malaysia as a “safe-seat” for dispute resolution in the world;

• Established predominance of Malaysia as leader in Islamic finance disputes

with the award winning i-Arbitration Rules;

• Independent regional centre set up pursuant to the AALCO treaty making it

a viable option for investment related disputes and disputes relating to AEC;

• Capacity building and knowledge dissemination has placed KLRCA at the

pivot of a nexus of organizations across the globe to capitalize on initiatives

such as One Belt One Road.

KLRCA Milestones

2016 Events Past (Jan – Aug)

2016 Events Upcoming

International ADNDRC Conference

Launch of i-Arbitration Rules

KLIAW and RAIF

Diploma in International Commercial Arbitration

Evening talk series- Pierre Genton

Evening talk series- Mark Beer

KIIAC 2016 - Biggest Investment Arbitration Conference in Asia

The Road Ahead The KLRCA has the following objectives for the road ahead:

Emerge as a comprehensive ADR centre providing world class ADR services in Malaysia,

ASEAN Region and across the world.

Identify, address and handle domestic market such as CIPAA and other initiatives such as

sports, medico-legal mediation and maritime arbitration.

Establish Malaysia as an attractive destination for foreign investment with seamless dispute

resolution.

Play an active role in establishing Malaysia as a “safe seat” and establish KLRCA’s position

as a niche arbitration centre in the world.

Further co-operation, capacity building and collaboration between other Institutions and fulfil

its mandate as a mission based, international organisation.

Thank you