Kuala Lumpur Regional Centre for Arbitration The Asia-Pacific Regional Arbitration Group Conference 2016 Smrithi Ramesh Deputy Head of Legal Services Kuala Lumpur Regional Centre for Arbitration
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 KLRCA i-Arbitration Rules KLRCA Fast Track Arbitration Rules (as revised in 2013) (as revised in 2013) (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 15 th 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 2010 2013 2015 0 100 200 300 400 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 Co-operation Agreements Maritime Law Society Global KLRCA Internship Program 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
KLIAW and RAIF International ADNDRC Conference Launch of i-Arbitration Rules
Evening talk series- Pierre Genton Diploma in International Commercial Arbitration 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
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