76 LAWYER MONTHLY ADR AWARDS 2024 Arbitration Lawyer of the Year MALAYSIA Is ADR suitable for common types of disputes, such as contract and real estate issues? How effective do you find it for resolving significant commercial disputes in these areas? ADR is Suitable for Common Types of Disputes ADR is highly suitable for disputes involving contract and real estate issues due to its flexibility, confidentiality, and the ability to maintain business relationships. Disputes in these areas often require swift resolution, expert knowledge, and confidentiality— criteria that ADR meets effectively. In Malaysia, ADR is often resorted to for resolving construction disputes. The construction sector often faces complex disputes related to payment issues, variations, and project delays, where the selection of an appropriate ADR method can significantly impact the efficiency and effectiveness of the resolution process. In the construction industry, disputes can severely disrupt project timelines and lead to significant financial losses. ADR methods like arbitration and mediation are particularly effective because they allow fast dispute resolving process and to promote advance cash flows, which is essential in the construction industry, and directly enable construction works to continue without prolonged delays. Arbitration is also frequently used due to its binding nature, providing a clear and enforceable outcome that can resolve disputes more definitively. Effectiveness of ADR in Resolving Significant Commercial Disputes The effectiveness of ADR in resolving significant commercial disputes, including those in construction and real estate, can be evaluated from several perspectives: • Confidentiality: ADR processes ensure that sensitive commercial information, including proprietary details about construction methods or real estate transactions, remains private. This protection is crucial in industries where public disclosure could lead to competitive disadvantages. • Expertise: Construction disputes often require the involvement of professionals with specialized knowledge of industry practices. ADR allows parties to select mediators or arbitrators with the necessary expertise to understand and resolve these technical disputes effectively. • Speed and Cost-Effectiveness: ADR is generally faster and more cost-effective than litigation, which is essential in construction projects where delays can have significant financial implications. By resolving disputes quickly, ADR helps minimize the impact on project timelines and budgets. • Flexibility: The flexibility of ADR allows for tailored solutions that can address the specific needs of the parties. This is especially beneficial in construction disputes, where the complexity of the issues might require creative and customized resolutions that a court might not be able to provide. What strategies has your firm employed to enhance the success rates of mediation and arbitration? The Firm’s Senior Partner, Mr Sudharsanan Thillainathan is a former President of the Malaysian Institute of Arbitrators (“Institute”) and the Firm’s Partner, Ms Dawn Wong is the current Deputy President of the Institute. Through the Firm’s longstanding involvement with the Institute, the Firm is uniquely placed to actively engage in ADR law reform and is committed to advancing the cause of alternative dispute resolution through mediation and arbitration by collaborating with local and international ADR institutions, industry associations, and academic centres aim to raise awareness, share knowledge, and promote ADR adoption in Malaysia. What efforts are being made to improve access to ADR services across different sectors and communities in Malaysia? On July 16, 2024, Malaysia’s Parliament passed the Arbitration (Amendment) Bill 2024, amending the Arbitration Act 2005. This legislative change is pivotal in solidifying Malaysia’s position as a leading hub for international arbitration. The amendments include: • Establishment of the AIAC Court of Arbitration: This new institution aims to provide a dedicated platform for arbitration, aligning with international best practices. The Court will enhance the efficiency and credibility of arbitration processes, ensuring that disputes are resolved effectively. • Revisions to Procedural Aspects: Key changes include the appointment procedures for arbitrators in cases involving multiple claimants and respondents, provisions for re-hearings, and the recognition of digital and electronic signatures for arbitration awards. Q Q Q
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