KUALA LUMPUR: Boost knowledge on Islamic arbitration and make Malaysia the preferred hub for it, says Sultan Nazrin Muizzuddin Shah (pic).
With the introduction of Islamic arbitration by the Asian International Arbitration Centre (AIAC), the country would also become the centre point of arbitration in the halal industries, the Perak Ruler added.
“As a leading centre for Islamic finance, Malaysia should continue to focus on this area of dispute resolution within the general framework of Islam.
“The AlAC would do well to gather a pool of experts in this area to become the preferred hub in Asia, specialising in Islamic finance arbitration, as well as in disputes within halal industries,” he said during his speech at the Asia Alternative Dispute Resolution (ADR) Week 2022 opening ceremony here yesterday.
Sultan Nazrin said the awareness of Islamic arbitration was still low, hence it was important to increase the understanding of it and its benefits to stakeholders.
“Islamic arbitration provides a unique path to amicable dispute resolution for businesses in this space.
“By providing a confidential means of settling disputes and maintaining the mutual goodwill of the parties, it helps to promote more stable business relationships,” he added.
Sultan Nazrin noted that one of the distinctive features of alternative arbitration was the need for an additional layer of consultation with either the syariah council or a syariah expert.
The added pre-arbitration process, he said, would increase the time taken to resolve any case, therefore training Islamic arbitrators was also important.
“To address this issue, steps could be taken to train those with specialisation in syariah, fiqh (jurisprudence) and muamalat (finance) as Islamic arbitrators.
“This would enable disputes to be resolved without the need to involve a syariah council or expert,” Sultan Nazrin said, adding that incentives and career paths must also be formulated for syariah graduates.
“In other words, talent and human resources should be developed in the field of Islamic arbitration.”
He also said that as the world was shifting towards a post-pandemic situation, an increase in disputes in many sectors would be seen, as businesses seek to adapt to the removal of temporary statutory protections.
“International arbitration is perfectly poised to act as a forum to resolve such disputes. It is particularly suitable to settle disputes involving incorporeal and borderless technologies such as blockchain and many other areas.
“The New York Convention helps greatly by simplifying the process of obtaining an award for enforcement in foreign jurisdictions,” Sultan Nazrin said.
Also present at the event was Chief Justice Tun Tengku Maimun Tuan Mat and AIAC director Tan Sri Suriyadi Halim Omar.
Themed “Compassus: The Odyssean Course to Modern ADR”, the three-day conference will be held until tomorrow at Bangunan Sulaiman here and online.
