KUALA LUMPUR: The International Settlement Agreements Resulting from Mediation Bill 2025 was passed in the Dewan Rakyat on Wednesday (Feb 11).
The Bill, which was debated by 11 MPs, was passed via a voice vote.
When winding up the debate on the Bill, Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M. Kulasegaran said the law only applies to parties who have finalised international agreements through mediation.
Confidentiality in the mediation process will also continue to be upheld.
He also said the courts can stay an application or claim to avoid conflicting decisions by other courts, arbitration tribunals or other relevant bodies in Malaysia.
“This is not a delay tactic but is intended to ensure a consolidated and efficient enforcement process, while also preventing any conflicts arising from various proceedings,” he said.
Kulasegaran added that the courts will only record the agreement of settlement and will not address substantive matters such as the facts of the case or its merits.
The government, he said, will work with mediation service providers, including the Asian International Arbitration Centre (AIAC) and the Malaysian International Mediation Centre (MIMC), to implement the Act.
The move is part of Malaysia’s plan to ratify the Singapore Convention on Mediation, signed in 2019, and aims to provide a clear legal framework for the enforcement of international settlement agreements in the country.
The Bill seeks to give effect to the United Nations Convention on International Settlement Agreements Resulting from Mediation, which Malaysia signed on Aug 7, 2019.
The proposed Act seeks to establish the legal framework necessary to implement Malaysia’s obligations under the convention and to facilitate the enforcement of international settlement agreements in the country.
This will, in turn, promote the use of mediation as an effective means of resolving international commercial disputes.
The proposed Act will not apply to certain international settlement agreements, including those concluded to resolve disputes arising from transactions entered into for personal, family or household purposes, or those that have already been approved by a court or other competent authority.
Clause 4 provides that an application may be made to the High Court by a party to an international settlement agreement for the agreement to be recorded by the court for the purpose of enforcing the international settlement agreement under the proposed Act.
