New law encourages mediation in disputes


KUALA LUMPUR: Courts will be encouraged to promote mediation as an alternative to resolve legal disputes, says Datuk Seri Azalina Othman Said.

The Law and Institutional Reform Minister said this will be through the newly-revised Legal Aid and Public Defence Act 2025 and the amendment to the Mediation Act 2012.

“Currently, besides taking cases to court, there are other alternatives such as adjudication and mediation.

“With the amendments, we are offering more access to justice for the masses. We want to encourage mediation as this will also lower the costs for both parties.

“We also hope that these amendments will make it easier for rural folk,” she said at a media conference after launching the Asean Law Forum 2025 here yesterday.

“We have certain government agencies which provide mediation, but mediators need to be certified,” Azalina said, adding that even village committee members could be trained as mediators.

She also expressed hope that next year’s Budget will have provisions for mobile courts.

She added that having alternative dispute resolutions would assist businesses that do not wish to highlight their problems in public.

Earlier, in her speech, Azalina said that mechanisms such as mediation and arbitration offer faster, more affordable outcomes, especially in commercial and civil matters.

“When supported by tech­nology, like AI-assisted case management or online dispute platforms, alternative dispute resolutions can resolve conflicts swiftly while relieving pressure on the courts.”

She said in July 2024, Malay­sia strengthened its alternative dispute resolution framework with key amendments to the Arbitration Act 2005 and the Construction Industry Payment and Adjudication Act 2012.

“This paved the way for the AIAC Court of Arbitration and streamlining processes in line with international best practi­ces, such as the United Nations Commission on International Trade Law (Uncitral) Model Law and the New York Convention.

“The new court will enhance impartiality, efficiency and cost-effectiveness.

“In addition to this, we are also reviewing the Mediation Act 2012 to enable Malaysia’s ratification of the Singapore Convention, further reinfor­cing our commitment to making Malaysia a trusted hub for arbitration and mediation.”

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