With rapid growth and bold moves in the recent years, the KLRCA has seen a resurgence and is now one of the best seat in the region.
Awards are rendered within three months from date of final submission. Appointment of arbitrator is made within 48 hours of receipt of all necessary documents.
Malaysia is a signatory to the 1958 UNCITRAL New York Convention which enables KLRCA’s arbitral awards to be enforceable in 149 countries. Also, Malaysia has a sound legal framework that supports arbitration. The Malaysian Arbitration Act, 2005 and the Arbitration (Amendment) Act 2011 limits court interference and provides the Director of KLRCA the statutory authority and independence to appoint arbitrators.
Arbitrations usually cost less than court cases because the arbitration hearing is briefer, and the preparation work less demanding compared to litigation. For example, fees for the KLRCA Fast Track Rules are capped and the duration for the proceedings is shorter. Cost of arbitral proceedings as well as other secondary costs, such as hotel, food & beverage, and transport in Malaysia are more competitive than in other countries in the region.
The Immigration Department of Malaysia officially confirmed that foreign arbitrators are exempted from applying for a Work Permit or a Professional Visit Pass when entering into Malaysia to conduct hearings which are held for a short duration. Letter from the Director General of Immigration can be viewed here.