AIAC launches free mediation service for commercial disputes

 The initiative is to help people and small businesses resolve commercial disputes involving claims under RM250,000 without lengthy litigation.

Law and institutional reform minister Azalina Othman Said described the initiative as a pioneering, one-of-its-kind effort. (Bernama pic)

KUALA LUMPUR:

The Asian International Arbitration Centre (AIAC) has launched a free mediation initiative to help Malaysians resolve commercial disputes involving claims of less than RM250,000.

Law and institutional reform minister Azalina Othman Said described the initiative as a pioneering, one-of-its-kind effort to widen public access to mediation through affordable and people-centric dispute resolution mechanisms.

Launching AIAC’s pro bono commercial mediation initiative here today, Azalina said it would cover 26 categories of disputes from contract disagreements to unpaid service claims, and provide a faster, more affordable alternative to court proceedings.

“Today, we change that narrative. We democratise access to mediation,” she said, noting that rising costs often fuel disputes while freelancers such as photographers and caterers are sometimes denied payment.

“Sometimes, people think that because these young people do not have companies, they can avoid paying them,” she said.

Azalina said eligible parties may apply for mediation services immediately either through walk-in submissions at AIAC or online applications.

She said mediation sessions may be conducted physically or virtually, with confidentiality being one of the key advantages over court proceedings.

She also expressed hope that disputes could be resolved within three to five days, where possible.

“A dispute resolved through mediation in weeks is a dispute that does not occupy a courtroom for months or years,” she said.

According to her, 173 mediators have registered to provide services under the initiative on a pro bono basis.

Azalina also said the government would continue exploring broader reforms to strengthen mediation in Malaysia, including the possibility of expanding the initiative into other areas such as family disputes.

AIAC Court of Arbitration president Mary Lim said pro bono services did not mean lower expertise. She said mediation could ease pressure on the courts.

“Mediation of these commercial disputes will free up valuable court time for our already overworked judges and staff to focus on more complex matters,” said the former Federal Court judge. - FMT