Govt to offer free mediation for contract disputes under RM250,000 from May


KUALA LUMPUR: The government will offer a free mediation service for legal disputes involving all types of contracts valued under RM250,000.

Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said (pic) said the service is expected to be made available to the public by May.

She said that those wishing to use the pro bono service must first submit their legal dispute to the Asian International Arbitration Centre (AIAC).

"This assistance is provided considering that mediation under the current system can only take place after the parties involved in legal disputes have filed their cases in court.

"We hope this service will help them resolve disputes through the mediation process, with legal costs being borne by AIAC,” she told reporters after attending the Artiste Symposium here on Thursday (April 9).

Officiated by Communications Minister Datuk Fahmi Fadzil, the symposium was also attended by his deputy Teo Nie Ching, Communications Ministry secretary-general Datuk Abdul Halim Hamzah and National Film Development Corporation Malaysia (Finas) chairman Datuk Hans Isaac.

Earlier, Azalina said in her speech that the mediation process was an alternative dispute resolution mechanism introduced under the Legal Aid and Public Defence Bill 2025 as part of ongoing legal reforms.

She said the approach was faster, more flexible and cost-effective compared to litigation, offering significant benefits to all parties, including artistes facing contractual, copyright or commercial disputes without having to bear high legal costs.

Azalina said it was in line with the government’s stance that access to justice was no longer the exclusive right of some groups, but for all Malaysians. — Bernama

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