Last week, I shared a post about the development of arbitration legislation in Malaysia from its infancy to the current Act. Today, I would be writing about the major amendment made in 2018 to the Act, the cause and ramifications.
One of the key amendments brought about by 2018 Amendments to the Arbitration Act 2005 (Amended 2011) is the repeal of section 42 based on the urgent request of the then President of the Malaysian Bar Council, Mr. Varughese George. The Bar Council had sent this request through a letter dated 23 November 2017 following the Federal Court judgment in Far East Holdings Bhd & Anor v Majlis Ugama Islam dan Adat Resam Melayu Pahang and other appeals [2018] 1 MLJ 1. The amendment brought Malaysia in tandem with approximately 41 other jurisdictions which do not permit referrals to court on a question of law arising from an award.
Flowing from my earlier post on the development of arbitration legislation in Malaysia, I am pleased to share the Malayan Law Journal publication entitled “Repeal of Section 42: The Question of Law Arising out of An Award by the Amended Arbitration Act 2005 [2019] 6 MLJ civ” which highlighted the background and rationale for the Bar Council request on the repeal. All arbitration awards are treated alike and the setting aside provision in Section 37. The repeal, in gist, arguably enhanced public confidence in Malaysia’s arbitration system which will lead to less litigation over questions of law arising from arbitration awards.
I hope that you found the articles I shared in this past 2 weeks as helpful in the understanding of the evolution of the Act in Malaysia.
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Datuk Professor Sundra Rajoo
President of the Asian Institute of Alternative Dispute Resolution (AIADR)
1 September 2020
Disclaimer: This Brevi Nota does not and is not intended to constitute legal advice. All information, content, and materials are for general informational purposes only.
