by AKMAR ANNUAR
THE government wants commercial disputes handled under the new Asian International Arbitration Centre (AIAC) Commercial Mediation Initiative to be settled within five days where possible, as part of a wider push to make mediation a faster and more affordable alternative to court action.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said (picture) said the initiative, launched under Pusat Mediasi Madani, is aimed at helping individuals, small traders and businesses settle commercial disputes involving claims of RM250,000 and below.
“I have asked, where possible, for this to be done in less than five days. (In my opinion) because if all parties agree to meet, they can try to resolve it quickly,” she told reporters after the launch.
Azalina said the initiative is the first project under Madani Mediation Centre and covers 26 types of commercial disputes, including contractual matters, work-related claims, unpaid services and other civil contract disputes.
She said the government is starting with claims of RM250,000 and below before assessing whether the model can be expanded to higher-value disputes.
The AIAC Pro Bono Commercial Mediation Initiative provides free mediation services for eligible disputes, with the AIAC waiving its mediation costs and mediator fees.
The initiative allows applicants to submit requests either online or through walk-in submissions at the AIAC, while mediation sessions may be conducted physically or virtually.
Azalina said the model is designed to avoid situations where parties must first file a case in court before they can access mediation.
She said one party may submit a request to the AIAC, after which the centre may contact the other party to inform them that a mediation application has been made.
Both parties, however, must agree to participate before the mediation can proceed.
“In this particular situation, we allow you to apply for mediation and not worry about going to court,” she said.
Azalina said the mechanism could help small traders and young service providers who face payment disputes but lack the means to pursue formal legal action.
She cited examples such as wedding service providers, photographers, caterers, movers and small contractors who may have completed work but were either paid partially or not paid at all.
She said this differs from legal aid programmes, as applicants are not assessed based on whether they fall within the B40 or M40 income groups.
Instead, the focus is on whether there is a genuine commercial dispute that falls within the prescribed threshold.
Azalina said the initiative is also relevant amid current economic pressures, where rising costs may cause disputes after parties had earlier agreed to certain contract values.
She said such disagreements could arise when prices increase after a contract has been signed, leaving parties unable to proceed on the original terms.
The minister said the government would first monitor the effectiveness of the commercial mediation model before considering whether it should be extended to other categories.
She said family disputes had been suggested as one possible area, but the government would study the outcome of the commercial framework before moving into another field.
Azalina said the government is also exploring broader reforms to strengthen mediation in Malaysia, including the possibility of mandatory mediation for selected small claims and commercial disputes under the ongoing review of the Mediation Act 2012.
The initiative is supported by 173 mediators who have registered to provide their services for free, including mediators from Malaysia and abroad.
Meanwhile, AIAC CEO Datuk Almalena Sharmila Johan said the initiative reflects the centre’s responsibility to ensure dispute resolution is not only of international standard but also accessible to those who need it most.
“Your (mediators) voluntariness to serve without expectation of remuneration speaks volumes about your commitment and dedication to the profession and the community,” she said in her speech.
Almalena said the pro bono commercial mediation cases would be administered under a specialised protocol, which will be made available in four main languages: English, Bahasa Malaysia, Tamil and Mandarin.
She said the initiative offers professionally administered mediation for commercial disputes valued at or below RM250,000, with full institutional support from the AIAC.
AIAC Court of Arbitration president Datuk Mary Lim Thiam Suan said mediation gives disputing parties a chance to regain control over their disputes, compared with litigation where court rules and timelines determine the process.
“Speaking as a retired judge, I only wish this initiative had been started far earlier. It would have made my life far easier,” she said.
Lim said commercial mediation could help free up valuable court time for judges and court staff to focus on more complex matters.
She said going to court is often not a practical business decision when parties must consider cost, time, resources and reputation.
Under the initiative’s framework, eligible disputes must arise from written contracts or agreements, although parties may apply even if there is no existing agreement to mediate.
According to the AIAC, mediation proceedings are confidential and may be terminated once parties reach a written settlement, if the mediator finds further efforts unlikely to resolve the matter, or if a party requests termination.
The proceedings will also automatically terminate after three months from the date the mediator is appointed, unless parties jointly request for the mediation to continue.
Azalina urged those with commercial disputes below RM250,000 to use the platform instead of allowing their disputes to drag on.
She said the initiative is meant to help the rakyat resolve disputes quickly, privately and without the financial burden of prolonged litigation.
The post Govt targets five-day resolution for pro bono commercial mediation cases appeared first on The Malaysian Reserve.
