Laws of Malaysia Arbitration Act Amandemen 2018

Arbitration 1
LAWS OF MALAYSIA
REPRINT
Act 646
ARBITRATION ACT 2005

As at 1 November 2018
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
2018
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2 Laws of Malaysia Act 646
Date of Royal Assent … … … … 30 December 2005
Date of publication in the Gazzette … … 31 December 2005
English text to be authoritative … … P.U. (B) 61/2006
Latest amendment made by

Act A1569 which came
into operation on … … … … 8 May 2018
Previous Reprint
First Reprint … … … … … 2006
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LAWS OF MALAYSIA
Act 646
ARRANGEMENT OF SECTIONS
Part I
PRELIMINARY
Section
1. Short title and commencement

2. Interpretation
3. Application to arbitrations and awards in Malaysia
3a. Representation
4. Arbitrability of subject matter
5. Government to be bound
Part II
ARBITRATION
Chapter 1
General provisions
6. Receipt of written communications

7. Waiver of right to object
8. Extent of court intervention
Chapter 2
Arbitration agreement
9. Definition and form of arbitration agreement

10. Arbitration agreement and substantive claim before court
11. Arbitration agreement and interim measures by High Court
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Chapter 3
Composition of arbitrators
Section
12. Number of arbitrators

13. Appointment of arbitrators
14. Grounds for challenge
15. Challenge procedure
16. Failure or impossibility to act
17. Appointment of substitute arbitrator
Chapter 4
Jurisdiction of arbitral tribunal
18. Competence of arbitral tribunal to rule on its jurisdiction

19. Power of arbitral tribunal to order interim measures
19a. Conditions for granting interim measures
19b. Application for preliminary orders and conditions for granting preliminary
orders
19c. Specific regime for preliminary orders
19d. Modification, suspension or termination
19e. Provision of security
19f. Disclosure
19g. Costs and damages
19h. Recognition and enforcement
19i. Grounds for refusing recognition or enforcement
19j. Court-ordered interim measures
Chapter 5
Conduct of arbitral proceedings
20. Equal treatment of parties

21. Determination of rules of procedure
22. Seat of arbitration
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Section
23. Commencement of arbitral proceedings
24. Language
25. Statements of claim and defence
26. Hearings
27. Default of a party
28. Expert appointed by arbitral tribunal
29. Court assistance in taking evidence
Chapter 6
Making of award and termination of proceedings
30. Law applicable to substance of dispute

31. Decision making by panel of arbitrators
32. Settlement
33. Form and contents of award
34. Termination of proceedings
35. Correction and interpretation of award or additional award
36. An award is final and binding
Chapter 7
Recourse against award
37. Application for setting aside
Chapter 8
Recognition and enforcement of awards
38. Recognition and enforcement

39. Grounds for refusing recognition or enforcement
Part III
ADDITIONAL PROVISIONS RELATING TO ARBITRATION
40. Consolidation of proceedings and concurrent hearings

41. Determination of preliminary point of law by court
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Section
41a. Disclosure of information relating to arbitral proceedings and awards
prohibited
41b. Proceedings to be heard otherwise than in open court
42–43. (Deleted)
44. Costs and expenses of an arbitration
45. Extension of time for commencing arbitration proceedings
46. Extension of time for making award
Part IV
MISCELLANEOUS
47. Liability of arbitrator

48. Immunity of arbitral institutions
49. Bankruptcy
50. Mode of application
51. Repeal and savings
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LAWS OF MALAYSIA
Act 646
An Act to reform the law relating to domestic arbitration, provide

for international arbitration, the recognition and enforcement of
awards and for related matters.
[15 March 2006, P.U. (B) 65/2006]
ENACTED by the Parliament of Malaysia as follows:
Part I
PRELIMINARY
Short title and commencement
1. (1) This Act may be cited as the Arbitration Act 2005.
(2) This Act comes into operation on a date to be appointed

by the Minister by notification in the Gazette.
Interpretation
2. (1) In this Act, unless the context otherwise requires—
“award” means a decision of the arbitral tribunal on the substance

of the dispute and includes any final, interim or partial award and
any award on costs or interest but does not include interlocutory
orders;
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“High Court” means the High Court in Malaya and the High
Court in Sabah and Sarawak or either of them, as the case may
require;
“Minister” means the Minister charged with the responsibility

for arbitration;
“State” means a sovereign State and not a component state of

Malaysia, unless otherwise specified;
“presiding arbitrator” means the arbitrator designated in the

arbitration agreement as the presiding arbitrator or chairman of
the arbitral tribunal, a single arbitrator or the third arbitrator
appointed under subsection 13(3);
“arbitration agreement” means an arbitration agreement as

defined in section 9;
“party” means a party to an arbitration agreement or, in any

case where an arbitration does not involve all the parties to the
arbitration agreement, means a party to the arbitration;
“seat of arbitration” means the place where the arbitration is

based as determined in accordance with section 22;
“international arbitration” means an arbitration where—
(a) one of the parties to an arbitration agreement, at the time

of the conclusion of that agreement, has its place of
business in any State other than Malaysia;
one of the following is situated in any State other than

(b)
Malaysia in which the parties have their places of
business:
(i) the seat of arbitration if determined in, or pursuant

to, the arbitration agreement;
(ii) any place where a substantial part of the obligations

of any commercial or other relationship is to be
performed or the place with which the subject
matter of the dispute is most closely connected;
or
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the parties have expressly agreed that the subject matter

(c)
of the arbitration agreement relates to more than one
State;
“domestic arbitration” means any arbitration which is not an

international arbitration;
“arbitral tribunal” means an emergency arbitrator, a sole

arbitrator or a panel of arbitrators.
(2) For the purposes of this Act—
(a) in the definition of “international arbitration”—
(i) where a party has more than one place of business,

reference to the place of business is that which
has the closest relationship to the arbitration
agreement; or
(ii) where a party does not have a place of business,

reference to the place of business is that party’s
habitual residence;
where a provision of this Act, except section 3, leaves the

(b)
parties free to determine a certain issue, such freedom
shall include the right of the parties to authorize a third
party, including an institution, to determine that issue;
where a provision of this Act refers to the fact that the

(c)
parties have agreed or that they may agree or in any
other way refers to an agreement of the parties, that
agreement shall include any arbitration rules referred
to in that agreement;
where a provision of this Act refers to a claim, other than

(d)
in paragraphs 27(a) and 34(2)(a), it shall also apply to
a counterclaim, and where it refers to a defence, it shall
also apply to a defence to that counterclaim.
Application to arbitrations and awards in Malaysia
3. (1) This Act shall apply throughout Malaysia.
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(2) In respect of a domestic arbitration, where the seat of

arbitration is in Malaysia—
Parts I, II and IV of this Act shall apply; and

(a)
(b) Part III of this Act shall apply unless the parties agree
otherwise in writing.
(3) In respect of an international arbitration, where the seat of

arbitration is in Malaysia—
Parts I, II and IV of this Act shall apply; and

(a)
Part III of this Act shall not apply unless the parties
(b)
agree otherwise in writing.
(4) For the purposes of paragraphs (2)(b) and (3)(b), the parties
to a domestic arbitration may agree to exclude the application of
Part III of this Act and the parties to an international arbitration
may agree to apply Part III of this Act, in whole or in part.
Representation
3a. Unless otherwise agreed by the parties, a party to arbitral

proceedings may be represented in the proceedings by any
representative appointed by the party.
Arbitrability of subject matter
4. (1) Any dispute which the parties have agreed to submit to

arbitration under an arbitration agreement may be determined by
arbitration unless the arbitration agreement is contrary to public
policy or the subject matter of the dispute is not capable of
settlement by arbitration under the laws of Malaysia.
(2) The fact that any written law confers jurisdiction in

respect of any matter on any court of law but does not refer
to the determination of that matter by arbitration shall not, by
itself, indicate that a dispute about that matter is not capable of
determination by arbitration.
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Government to be bound
5. This Act shall apply to any arbitration to which the Federal

Government or the Government of any component state of Malaysia
is a party.
Part II
ARBITRATION
Chapter 1
General provisions
Receipt of written communications
6. (1) Unless otherwise agreed by the parties—
a written communication is deemed to have been received

(a)
if it is delivered to the addressee personally or if it is
delivered at his place of business, habitual residence or
mailing address; and
where the places referred to in paragraph (a) cannot

(b)
be found after making a reasonable inquiry, a written
communication is deemed to have been received if it
is sent to the addressee’s last known place of business,
habitual residence or mailing address by registered post
or any other means which provides a record of the
attempt to deliver it.
(2) Unless otherwise agreed by the parties, a written communication

sent electronically is deemed to have been received if it is sent
to the electronic mailing address of the addressee.
(3) The communication is deemed to have been received on

the day it is so delivered.
(4) This section shall not apply to any communications in

respect of court proceedings.
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Waiver of right to object
7. A party who knows—
of any provision of this Act from which the parties may

(a)
derogate; or
that any requirement under the arbitration agreement has

(b)
not been complied with,
and yet proceeds with the arbitration without stating its objection
to such non-compliance without undue delay or, if a time limit
is provided for stating that objection, within that period of time,
shall be deemed to have waived its right to object.
Extent of court intervention
8. No court shall intervene in matters governed by this Act,

except where so provided in this Act.
Chapter 2
Arbitration agreement
Definition and form of arbitration agreement
9. (1) In this Act, “arbitration agreement” means an agreement

by the parties to submit to arbitration all or certain disputes
which have arisen or which may arise between them in respect
of a defined legal relationship, whether contractual or not.
(2) An arbitration agreement may be in the form of an arbitration

clause in an agreement or in the form of a separate agreement.
(3) An arbitration agreement shall be in writing.
(4) An arbitration agreement is in writing—
if its content is recorded in any form, whether or not the

(a)
arbitration agreement or contract has been concluded
orally, by conduct, or by other means; or
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if it is contained in an exchange of statement of claim

(b)
and defence in which the existence of an agreement is
alleged by one party and not denied by the other.
(4a) The requirement that an arbitration agreement be in writing

is met by any electronic communication that the parties make by
means of data message if the information contained therein is
accessible so as to be useable for subsequent reference.
(5) A reference in an agreement to a document containing

an arbitration clause shall constitute an arbitration agreement,
provided that the agreement is in writing and the reference is
such as to make that clause part of the agreement.
(6) For the purpose of this section, “data message” means

information generated, sent, received or stored by electronic,
magnetic, optical or similar means, including, but not limited
to, electronic data interchange, electronic mail, telegram, telex
or telecopy.
Arbitration agreement and substantive claim before court
10. (1) A court before which proceedings are brought in respect

of a matter which is the subject of an arbitration agreement shall,
where a party makes an application before taking any other steps
in the proceedings, stay those proceedings and refer the parties
to arbitration unless it finds that the agreement is null and void,
inoperative or incapable of being performed.
(2) The court, in granting a stay of proceedings pursuant to

subsection (1), may impose any conditions as it deems fit.
(2 a ) Where admiralty proceedings are stayed pursuant to

subsection (1), the court granting the stay may, if in those
proceedings property has been arrested or bail or other security
has been given to prevent or obtain release from arrest—
(a) order that the property arrested be retained as security

for the satisfaction of any award given in the arbitration
in respect of that dispute; or
(b) order that the stay of those proceedings be conditional on

the provision of equivalent security for the satisfaction
of any such award.
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(2 b ) Subject to any rules of court and to any necessary

modifications, the same law and practice shall apply in relation to
property retained in pursuance of an order under subsection (2a)
as would apply if it were held for the purposes of proceedings
in the court making the order.
(2c) For the purpose of this section, admiralty proceedings

refer to admiralty proceedings under Order 70 of the *Rules of the
High Court 1980 [P.U. (A) 50/1980] and proceedings commenced
pursuant to paragraph 24(b) of the Courts of Judicature Act 1964
[Act 91].
(3) Where the proceedings referred to in subsection (1) have

been brought, arbitral proceedings may be commenced or continued,
and an award may be made, while the issue is pending before
the court.
(4) This section shall also apply in respect of an international

arbitration, where the seat of arbitration is not in Malaysia.
Arbitration agreement and interim measures by High Court
11. (1) A party may, before or during arbitral proceedings, apply

to a High Court for any interim measure and the High Court may
make the following orders for the party to—
maintain or restore the status quo pending the determination

(a)
of the dispute;
take action that would prevent or refrain from taking

(b)
action that is likely to cause current or imminent harm
or prejudice to the arbitral process;
provide a means of preserving assets out of which a

(c)
subsequent award may be satisfied, whether by way of
arrest of property or bail or other security pursuant to
the admiralty jurisdiction of the High Court;
*NOTE—Rules of the High Court 1980 [P.U. (A) 50/1980] has since been
repealed by the Rules of Courts 2012 [P. U. (A) 205/2012] – see Order 94
P. U. (A) 205/2012.
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preserve evidence that may be relevant and material to

(d)
the resolution of the dispute; or
provide security for the costs of the dispute.

(e)
(2) Where a party applies to the High Court for any interim
measure and an arbitral tribunal has already ruled on any matter
which is relevant to the application, the High Court shall treat
any findings of fact made in the course of such ruling by the
arbitral tribunal as conclusive for the purposes of the application.
(3) This section shall also apply in respect of an international

arbitration, where the seat of arbitration is not in Malaysia.
Chapter 3
Composition of arbitrators
Number of arbitrators
12. (1) The parties are free to determine the number of arbitrators.
(2) Where the parties fail to determine the number of arbitrators,

the arbitral tribunal shall—
in the case of an international arbitration, consist of three

(a)
arbitrators; and
in the case of a domestic arbitration, consist of a single

(b)
arbitrator.
Appointment of arbitrators
13. (1) Unless otherwise agreed by the parties, no person shall

be precluded by reason of nationality from acting as an arbitrator.
(2) The parties are free to agree on a procedure for appointing

the arbitrator or the presiding arbitrator.
(3) Where the parties fail to agree on the procedure referred to

in subsection (2), and the arbitration consists of three arbitrators,
each party shall appoint one arbitrator, and the two appointed
arbitrators shall appoint the third arbitrator as the presiding
arbitrator.
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(4) Where subsection (3) applies and—
a party fails to appoint an arbitrator within thirty days of

(a)
receipt of a request in writing to do so from the other
party; or
the two arbitrators fail to agree on the third arbitrator

(b)
within thirty days of their appointment or such extended
period as the parties may agree,
either party may apply to the Director of the Asian International

Arbitration Centre (Malaysia) for such appointment.
(5) Where in an arbitration with a single arbitrator—
the parties fail to agree on the procedure referred to in

(a)
subsection (2); and
(b) the parties fail to agree on the arbitrator,
either party may apply to the Director of the Asian International

Arbitration Centre (Malaysia) for the appointment of an arbitrator.
(6) Where, the parties have agreed on the procedure for

appointment of the arbitrator—
a party fails to act as required under such procedure;

(a)
the parties, or two arbitrators, are unable to reach an

(b)
agreement under such procedure; or
a third party, including an institution, fails to perform

(c)
any function entrusted to it under such procedure,
any party may request the Director of the Asian International

Arbitration Centre (Malaysia) to take the necessary measures,
unless the agreement on the appointment procedure provides other
means for securing the appointment.
(7) Where the Director of the Asian International Arbitration

Centre (Malaysia) is unable to act or fails to act under subsections
(4), (5) and (6) within thirty days from the request, any party
may apply to the High Court for such appointment.
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(8) In appointing an arbitrator the Director of the Asian

International Arbitration Centre (Malaysia) or the High Court,
as the case may be, shall have due regard to—
any qualifications required of the arbitrator by the agreement

(a)
of the parties;
other considerations that are likely to secure the appointment

(b)
of an independent and impartial arbitrator; and
in the case of an international arbitration, the advisability

(c)
of appointing an arbitrator of a nationality other than
those of the parties.
(9) No appeal shall lie against any decision of the Director of

the Asian International Arbitration Centre (Malaysia) or the High
Court under this section.
Grounds for challenge
14. (1) A person who is approached in connection with that

person’s possible appointment as an arbitrator shall disclose any
circumstances likely to give rise to justifiable doubts as to that
person’s impartiality or independence.
(2) An arbitrator shall, without delay, from the time of

appointment and throughout the arbitral proceedings, disclose any
circumstances referred to in subsection (1) to the parties unless
the parties have already been informed of such circumstances by
the arbitrator.
(3) An arbitrator may be challenged only if—
the circumstances give rise to justifiable doubts as to that

(a)
arbitrator’s impartiality or independence; or
that arbitrator does not possess qualifications agreed to

(b)
by the parties.
(4) A party may challenge an arbitrator appointed by that party,

or in whose appointment that party has participated, only for
reasons which that party becomes aware of after the appointment
has been made.
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Challenge procedure
15. (1) Unless otherwise agreed by the parties, any party who
intends to challenge an arbitrator shall, within fifteen days after
becoming aware of the constitution of the arbitral tribunal or
of any reasons referred to in subsection 14(3), send a written
statement of the reasons for the challenge to the arbitral tribunal.
(2) Unless the challenged arbitrator withdraws from office or

the other party agrees to the challenge, the arbitral tribunal shall
make a decision on the challenge.
(3) Where a challenge is not successful, the challenging

party may, within thirty days after having received notice of the
decision rejecting the challenge, apply to the High Court to make
a decision on the challenge.
(4) While such an application is pending, the arbitral tribunal,

including the challenged arbitrator, may continue the arbitral
proceedings and make an award.
(5) No appeal shall lie against the decision of the High Court
under subsection (3).
Failure or impossibility to act
16. (1) Where an arbitrator becomes in law or in fact unable to

perform the functions of that office, or for other reasons fails to
act without undue delay, that arbitrator’s mandate terminates on
withdrawal from office or if the parties agree on the termination.
(2) Where any party disagrees on the termination of the mandate

of the arbitrator, any party may apply to the High Court to decide
on such termination and no appeal shall lie against the decision
of the High Court.
(3) Where, under this section or subsection 15(2), an arbitrator

withdraws from office or a party agrees to the termination
of the mandate of an arbitrator, it shall not imply acceptance
of the validity of any ground referred to in this section or
subsection 14(3).
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Appointment of substitute arbitrator
17. (1) A substitute arbitrator shall be appointed in accordance

with the provisions of this Act where—
the mandate of an arbitrator terminates under section 15

(a)
or 16;
an arbitrator withdraws from office for any other reason;

(b)
the mandate of the arbitrator is revoked by agreement of

(c)
the parties; or
in any other case of termination of mandate.

(d)
(2) Unless otherwise agreed by the parties—
where a single or the presiding arbitrator is replaced,

(a)
any hearings previously held shall be repeated before
the substitute arbitrator; or
where an arbitrator other than a single or the presiding

(b)
arbitrator is replaced, any hearings previously held may
be repeated at the discretion of the arbitral tribunal.
(3) Unless otherwise agreed by the parties, any order or ruling of

the arbitral tribunal made prior to the replacement of an arbitrator
under this section shall not be invalid solely on the ground there
has been a change in the composition of the arbitral tribunal.
Chapter 4
Jurisdiction of arbitral tribunal
Competence of arbitral tribunal to rule on its jurisdiction
18. (1) The arbitral tribunal may rule on its own jurisdiction,
including any objections with respect to the existence or validity
of the arbitration agreement.
(2) For the purposes of subsection (1)—
an arbitration clause which forms part of an agreement

(a)
shall be treated as an agreement independent of the other
terms of the agreement; and
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a decision by the arbitral tribunal that the agreement is

(b)
null and void shall not ipso jure entail the invalidity of
the arbitration clause.
(3) A plea that the arbitral tribunal does not have jurisdiction
shall be raised not later than the submission of the statement of
defence.
(4) A party is not precluded from raising a plea under

subsection (3) by reason of that party having appointed or
participated in the appointment of the arbitrator.
(5) A plea that the arbitral tribunal is exceeding the scope of

its authority shall be raised as soon as the matter alleged to be
beyond the scope of its authority is raised during the arbitral
proceedings.
(6) Notwithstanding subsections (3) and (5), the arbitral tribunal

may admit such plea if it considers the delay justified.
(7) The arbitral tribunal may rule on a plea referred to in

subsection (3) or (5), either as a preliminary question or in an
award on the merits.
(8) Where the arbitral tribunal rules on such a plea as a

preliminary question that it has jurisdiction, any party may, within
thirty days after having received notice of that ruling appeal to
the High Court to decide the matter.
(9) While an appeal is pending, the arbitral tribunal may

continue the arbitral proceedings and make an award.
(10) No appeal shall lie against the decision of the High Court
under subsection (8).
Power of arbitral tribunal to order interim measures
19. (1) Unless otherwise agreed by the parties, the arbitral

tribunal may, at the request of a party, grant interim measures.
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(2) An interim measure is any temporary measure, whether in

the form of an award or in another form, by which, at any time
prior to the issuance of the award by which the dispute is finally
decided, the arbitral tribunal orders a party to—
maintain or restore the status quo pending the determination

(a)
of the dispute:
take action that would prevent or refrain from taking

(b)
action that is likely to cause current or imminent harm
or prejudice to the arbitral process itself;
provide a means of preserving assets out of which a

(c)
subsequent award may be satisfied;
preserve evidence that may be relevant and material to

(d)
the resolution of the dispute; or
provide security for the costs of the dispute.

(e)
(3) (Deleted by Act A1569).
Conditions for granting interim measures
19a. (1) The party requesting for the interim measures order

under paragraphs 19(2)(a), (b) or (c) shall satisfy the arbitral
tribunal that—
harm not adequately reparable by an award of damages is

(a)
likely to result if the measure is not ordered, and such
harm substantially outweighs the harm that is likely to
result to the party against whom the measure is directed
if the measure is granted; and
there is a reasonable possibility that the requesting party

(b)
will succeed on the merits of the claim.
(2) The determination on the reasonable possibility referred to

in paragraph (1)(b) shall not affect the discretion of the arbitral
tribunal in making any subsequent determination relating to the
dispute.
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(3) In respect of the request for an interim measure order under

paragraph 19(2)(d), the conditions in subsections (1) and (2)
shall apply only to the extent the arbitral tribunal considers
appropriate.
Application for preliminary orders and conditions for granting

preliminary orders
19b. (1) Unless otherwise agreed by parties, a party may, without

notice to any other party, make a request for an interim measure
together with an application for a preliminary order directing a
party not to frustrate the purpose of the interim measure requested.
(2) The arbitral tribunal may grant a preliminary order provided

that the arbitral tribunal considers that prior disclosure of the
request for the interim measure to the party against whom the
measure is directed risks frustrating the purpose of the interim
measure.
(3) The conditions specified in section 19a shall apply to any

preliminary order provided that the harm to be assessed under
paragraph 19a(1)(a) is the harm that is likely to result from the
order being granted or not.
Specific regime for preliminary orders
19 c . (1) Immediately after the arbitral tribunal has made a

determination in respect of an application for a preliminary order,
the arbitral tribunal shall—
give notice to all parties of the request for the interim measure,
(a)
the application for the preliminary order, the preliminary
order, if any, and all other communications, including
by indicating the content of any oral communication,
between any party and the arbitral tribunal in relation
thereto; and
give an opportunity to any party against whom a

(b)
preliminary order is directed to present its case at the
earliest practicable time.
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(2) The arbitral tribunal shall decide immediately on any

objection to the preliminary order.
(3) A preliminary order shall expire after twenty days from

the date on which the order was issued by the arbitral tribunal.
(4) Notwithstanding subsection (3), the arbitral tribunal may

issue an interim measure which adopts or modifies the preliminary
order, after the party against whom the preliminary order is
directed has been given notice and an opportunity to present his
case.
(5) A preliminary order shall be binding on the parties but

shall not be subject to any enforcement by the High Court.
(6) The preliminary order referred to in subsection (5) shall

not constitute an award.
Modification, suspension or termination
19d. The arbitral tribunal may modify, suspend or terminate an

interim measure it has granted, upon an application of any party
or, in exceptional circumstances and upon prior notice to the
parties, on the arbitral tribunal’s own initiative.
Provision of security
19e. (1) The arbitral tribunal may require the party requesting

an interim measure to provide appropriate security in connection
with the measure.
(2) The arbitral tribunal shall require the party applying for
a preliminary order to provide security in connection with the
order unless the arbitral tribunal considers it inappropriate or
unnecessary to do so.
Disclosure
19f. (1) The arbitral tribunal may require any party to immediately
disclose any material change in the circumstances on the basis
of which the interim measure or preliminary order was requested
or applied or granted.
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(2) The party applying for a preliminary order shall disclose

to the arbitral tribunal all the circumstances that are likely to be
relevant to the arbitral tribunal’s determination on whether to
grant or maintain the order and such obligation shall continue
until the party against whom the order has been requested has
had an opportunity to present its case.
Costs and damages
19g. (1) The party requesting for an interim measure or applying

for a preliminary order shall be liable for any costs and damages
caused by the interim measure or the preliminary order to any party
if the arbitral tribunal later determines that, in the circumstances,
the interim measure or the preliminary order should not have
been granted.
(2) The arbitral tribunal may award such costs and damages
referred to in subsection (1) at any point during the proceedings.
Recognition and enforcement
19 h . (1) Subject to the provisions of section 19i , an interim

measure issued by an arbitral tribunal shall be recognized as
binding and, unless otherwise provided by the arbitral tribunal,
enforced upon application to the competent court, irrespective of
the country in which it was issued.
(2) The party who is seeking or has obtained recognition or

enforcement of an interim measure shall immediately inform
the court of any termination, suspension or modification of that
interim measure.
(3) The court where recognition or enforcement is sought may,

if it considers it proper, order the requesting party to provide
appropriate security if the arbitral tribunal has not already made
a determination with respect to security or where such a decision
is necessary to protect the rights of third parties.
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Arbitration 25
Grounds for refusing recognition or enforcement
19i. (1) Recognition or enforcement of an interim measure may

be refused only—
at the request of the party against whom it is invoked if

(a)
the High Court is satisfied that—
(i) such refusal is warranted on the grounds set forth

in subparagraph 39(1)(a)(i), (ii), (iii), (iv), (v)
or (vi);
(ii) the arbitral tribunal’s decision with respect to

the provision of security in connection with the
interim measure issued by the arbitral tribunal
has not been complied with; or
(iii) the interim measure has been terminated or

suspended by the arbitral tribunal or, where so
empowered, by the court of the State in which
the arbitration takes place or under the law of
which that interim measure was granted; or
if the High Court finds that—

(b)
(i) the interim measure is incompatible with the

powers conferred upon the Court, but the Court
may decide to reformulate the interim measure
to the extent necessary, without modifying its
substance, to adapt it to the Court’s powers and
procedures for the purposes of enforcing that
interim measure; or
(ii) any grounds set forth in subparagraph 39(1)(b)(i)

or (ii) apply to the recognition and enforcement
of the interim measure.
(2) Any determination made by the High Court on any of the

grounds in subsection (1) shall be effective only for the purpose
of the application to recognize or enforce the interim measure.
(3) The High Court where recognition or enforcement is sought

shall not, in making any determination on any of the grounds in
subsection (1), undertake a review of the substance of the interim
measure.
Act 646 BI.indd 25 10/30/18 8:12 AM

Court-ordered interim measures
19j. (1) The High Court has the power to issue an interim measure
in relation to arbitration proceedings, irrespective of whether the
seat of arbitration is in Malaysia.
(2) The High Court shall exercise the power referred to in

subsection (1) in accordance with its own procedures in consideration
of the specific features of international arbitration.
(3) Where a party applies to the High Court for any interim
measure and an arbitral tribunal has already ruled on any matter
which is relevant to the application, the High Court shall treat
any findings of fact made in the course of such ruling by the
arbitral tribunal as conclusive for the purposes of the application.
Chapter 5
Conduct of arbitral proceedings
Equal treatment of parties
20. The parties shall be treated with equality and each party
shall be given a fair and reasonable opportunity of presenting
that party’s case.
Determination of rules of procedure
21. (1) Subject to the provisions of this Act, the parties are free
to agree on the procedure to be followed by the arbitral tribunal
in conducting the proceedings.
(2) Where the parties fail to agree under subsection (1), the
arbitral tribunal may, subject to the provisions of this Act, conduct
the arbitration in such manner as it considers appropriate.
(3) The power conferred upon the arbitral tribunal under

subsection (2) shall include the power to—
determine the admissibility, relevance, materiality and

(a)
weight of any evidence;
draw on its own knowledge and expertise;

(b)
Act 646 BI.indd 26 10/30/18 8:12 AM

Arbitration 27
order the provision of further particulars in a statement

(c)
of claim or statement of defence;
order the giving of security for costs;

(d)
fix and amend time limits within which various steps in

(e)
the arbitral proceedings must be completed;
order the discovery and production of documents or

(f)
materials within the possession or power of a party;
order the interrogatories to be answered;

(g)
order that any evidence be given on oath or affirmation;

(h)
and
(i) make such other orders as the arbitral tribunal considers

appropriate.
Seat of arbitration
22. (1) The parties are free to agree on the seat of arbitration.
seat of arbitration shall be determined by the arbitral tribunal
having regard to the circumstances of the case, including the
convenience of the parties.
(3) Notwithstanding subsections (1) and (2), the arbitral tribunal

may, unless otherwise agreed by the parties, meet at any place
it considers appropriate for consultation among its members, for
hearing witnesses, experts or the parties, or for inspection of
goods, other property or documents.
Commencement of arbitral proceedings
23. Unless otherwise agreed by the parties, the arbitral proceedings

in respect of a particular dispute shall commence on the date
on which a request in writing for that dispute to be referred to
arbitration is received by the respondent.
Act 646 BI.indd 27 10/30/18 8:12 AM

Language
24. (1) The parties are free to agree on the language to be used
in the arbitral proceedings.
arbitral tribunal shall determine the language to be used in the
arbitral proceedings.
(3) The agreement or the determination referred to in

subsections (1) and (2) respectively shall, unless otherwise specified
in the agreement or determination, apply to any written statement
made by a party, any hearing and any award, decision or other
communication by the arbitral tribunal.
(4) The arbitral tribunal may order that any documentary

evidence shall be accompanied by a translation into the language
agreed upon by the parties or determined by the arbitral tribunal.
Statements of claim and defence
25. (1) Within the period of time agreed by the parties or,
failing such agreement, as determined by the arbitral tribunal,
the claimant shall state—
the facts supporting his claim;

(a)
the points at issue; and

(b)
the relief or remedy sought,

(c)
and the respondent shall state his defence in respect of the

particulars set out in this subsection, unless the parties have
otherwise agreed to the required elements of such statements.
(2) The parties may—
submit with their statements any document the parties

(a)
consider relevant; or
add a reference to the documents or other evidence that

(b)
the parties may submit.
Act 646 BI.indd 28 10/30/18 8:12 AM

Arbitration 29
(3) Unless otherwise agreed by the parties, either party may

amend or supplement the claim or defence during the course of
the arbitral proceedings, unless the arbitral tribunal considers it
inappropriate to allow such amendment having regard to the delay
in making it.
Hearings
26. (1) Unless otherwise agreed by the parties, the arbitral tribunal
shall decide whether to hold oral hearings for the presentation
of evidence or oral arguments, or whether the proceedings shall
be conducted on the basis of documents and other materials.
(2) Unless the parties have agreed that no hearings shall be

held, the arbitral tribunal shall upon the application of any party
hold oral hearings at an appropriate stage of the proceedings.
(3) The parties shall be given reasonable prior notice of any

hearing and of any meeting of the arbitral tribunal for the purposes
of inspection of goods, other property or documents.
(4) All statements, documents or other information supplied to

the arbitral tribunal by one party shall be communicated to the
other party.
(5) Any expert report or evidentiary document on which

the arbitral tribunal may rely in making its decision shall be
communicated to the parties.
Default of a party
27. Unless otherwise agreed by the parties, if without showing

sufficient cause—
the claimant fails to communicate the statement of claim

(a)
in accordance with subsection 25(1), the arbitral tribunal
shall terminate the proceedings;
the respondent fails to communicate the statement of

(b)
defence in accordance with subsection 25(1), the arbitral
tribunal shall continue the proceedings without treating
such failure in itself as an admission of the claimant’s
allegations;
Act 646 BI.indd 29 10/30/18 8:12 AM

any party fails to appear at a hearing or to produce

(c)
documentary evidence, the arbitral tribunal may continue
the proceedings and make the award on the evidence
before it; or
the claimant fails to proceed with the claim, the arbitral

(d)
tribunal may make an award dismissing the claim or give
directions, with or without conditions, for the speedy
determination of the claim.
Expert appointed by arbitral tribunal
28. (1) Unless otherwise agreed by the parties, the arbitral

tribunal may—
appoint one or more experts to report to it on specific

(a)
issues to be determined by the arbitral tribunal; or
require a party to give the expert any relevant information

(b)
or to produce or to provide access to any relevant
documents, goods or other property for the expert’s
inspection.
(2) Unless otherwise agreed by the parties, if a party so requests

or if the arbitral tribunal considers it necessary, the expert shall,
after delivery of a written or oral report, participate in a hearing
where the parties have the opportunity to put questions to the
expert and to present other expert witnesses in order to testify
on the points at issue.
Court assistance in taking evidence
29. (1) Any party may with the approval of the arbitral tribunal,
apply to the High Court for assistance in taking evidence.
(2) The High Court may order the attendance of a witness to

give evidence or, where applicable, produce documents on oath
or affirmation before an officer of the High Court or any other
person, including the arbitral tribunal.
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Arbitration 31
Chapter 6
Making of award and termination of proceedings
Law applicable to substance of dispute
30. (1) The arbitral tribunal shall decide the dispute in accordance
with such rules of law as are chosen by the parties as applicable
to the substance of the dispute.
(2) (Deleted by Act A1569).
(3) Any designation of the law or legal system of a given

State shall be construed, unless otherwise expressed, as directly
referring to the substantive law of that State and not to its conflict
of laws rules.
(4) Failing any designation by the parties, the arbitral tribunal

shall apply the laws determined by the conflict of laws rules
which it considers applicable.
(4a) The arbitral tribunal shall decide according to equity and

conscience only if the parties have expressly authorized it to do
so.
(5) The arbitral tribunal shall, in all cases, decide in accordance

with the terms of the agreement and shall take into account the
usages of the trade applicable to the transaction.
Decision making by panel of arbitrators
31. (1) Unless otherwise agreed by the parties, in any arbitral

proceedings with more than one arbitrator, any decision of
the arbitral tribunal shall be made by a majority of all its
members.
(2) Where so authorized by the parties or by all the members

of the arbitral tribunal, questions of procedure may be decided
by the presiding arbitrator.
Act 646 BI.indd 31 10/30/18 8:12 AM

Settlement
32. (1) If, during arbitral proceedings, the parties settle the
dispute, the arbitral tribunal shall terminate the proceedings and,
if requested by the parties and not objected to by the arbitral
tribunal, record the settlement in the form of an award on agreed
terms.
(2) An award on agreed terms shall be made in accordance with

the provisions of section 33 and shall state that it is an award.
(3) An award made under subsection (1) shall have the same
status and effect as an award on the merits of the case.
Form and contents of award
33. (1) An award shall be made in writing and subject to

subsection (2) shall be signed by the arbitrator.
(2) In arbitral proceedings with more than one arbitrator, the

signatures of the majority of all members of the arbitral tribunal
shall be sufficient provided that the reason for any omitted
signature is stated.
(3) An award shall state the reasons upon which it is based,

unless—
the parties have agreed that no reasons are to be given;

(a)
or
the award is an award on agreed terms under section 32.

(b)
(4) An award shall state its date and the seat of arbitration as
determined in accordance with section 22 and shall be deemed
to have been made at that seat.
(5) After an award is made, a copy of the award signed by

the arbitrator in accordance with subsections (1) and (2) shall be
delivered to each party.
Act 646 BI.indd 32 10/30/18 8:12 AM

Arbitration 33
(6) Subject to subsection (8), unless otherwise agreed by the

parties, the arbitral tribunal may, in the arbitral proceedings before
it, award simple or compound interest from such date, at such rate
and with such rest as the arbitral tribunal considers appropriate,
for any period ending not later than the date of payment of the
whole or any part of—
any sum which is awarded by the arbitral tribunal in the

(a)
arbitral proceedings;
any sum which is in issue in the arbitral proceedings but

(b)
is paid before the date of the award; or
costs awarded or ordered by the arbitral tribunal in the

(c)
arbitral proceedings.
(7) Nothing in subsection (6) shall affect any other power of

an arbitral tribunal to award interest.
(8) Where an award directs a sum to be paid, that sum shall,

unless the award otherwise directs, carry interest as from the date
of the award and at the same rate as a judgment debt.
Termination of proceedings
34. (1) The arbitral proceedings shall be terminated by a final

award or by an order of the arbitral tribunal in accordance with
subsection (2).
(2) The arbitral tribunal shall order the termination of the

arbitral proceedings where—
the claimant withdraws the claim, unless the respondent

(a)
objects to the withdrawal and the arbitral tribunal recognizes
the respondent’s legitimate interest in obtaining a final
settlement of the dispute;
the parties agree on the termination of the proceedings;

(b)
or
the arbitral tribunal finds that the continuation of the

(c)
proceedings has for any other reason become unnecessary
or impossible.
Act 646 BI.indd 33 10/30/18 8:12 AM

(3) S u b j e c t t o t h e p r o v i s i o n s o f s e c t i o n 3 5 a n d
subsection 37(6), the mandate of the arbitral tribunal shall terminate
with the termination of the arbitral proceedings.
(4) Unless otherwise provided by any written law, the death

of a party does not terminate—
the arbitral proceedings; or

(a)
the authority of the arbitral tribunal.

(b)
Correction and interpretation of award or additional award
35. (1) A party, within thirty days of the receipt of the award,
unless any other period of time has been agreed upon by the
parties—
upon notice to the other party, may request the arbitral

(a)
tribunal to correct in the award any error in computation,
any clerical or typographical error or other error of
similar nature; or
upon notice to and with the agreement of the other party,

(b)
may request the arbitral tribunal to give an interpretation
of a specific point or part of the award.
(2) Where the arbitral tribunal considers the request made

under subsection (1) to be justified, it shall make the correction
or give the interpretation within thirty days of the receipt of the
request and such interpretation shall form part of the award.
(3) The arbitral tribunal may correct any error of the type
referred to in paragraph (1)(a) on its own initiative within thirty
days of the date of the award.
(4) Unless otherwise agreed by the parties, a party may, within

thirty days of the receipt of the award and upon notice to the other
party, request the arbitral tribunal to make an additional award as
to claims presented in the arbitral proceedings but omitted from
the award.
Act 646 BI.indd 34 10/30/18 8:12 AM

Arbitration 35
(5) Where the arbitral tribunal considers the request under

subsection (4) to be justified, it shall make the additional award
within sixty days from the receipt of such request.
(6) The arbitral tribunal may, where it thinks necessary, extend

the period of time within which it shall make a correction,
interpretation or an additional award under this section.
(7) The provisions of section 33 shall apply to a correction or

interpretation of the award or to an additional award.
An award is final and binding
36. (1) An award made by an arbitral tribunal pursuant to an

arbitration agreement shall be final and binding on the parties
and may be relied upon by any party by way of defence, set-off
or otherwise in any proceedings in any court.
(2) The arbitral tribunal shall not vary, amend, correct, review,
add to or revoke an award which has been made except as
specifically provided for in section 35.
Chapter 7
Recourse against award
Application for setting aside
37. (1) An award may be set aside by the High Court only if—
the party making the application provides proof that—

(a)
(i) a party to the arbitration agreement was under

any incapacity;
(ii) the arbitration agreement is not valid under the

law to which the parties have subjected it, or,
failing any indication thereon, under the laws
of Malaysia;
(iii) the party making the application was not given

proper notice of the appointment of an arbitrator
or of the arbitral proceedings or was otherwise
unable to present that party’s case;
Act 646 BI.indd 35 10/30/18 8:12 AM

(iv) the award deals with a dispute not contemplated by

or not falling within the terms of the submission
to arbitration;
(v) subject to subsection (3), the award contains

decisions on matters beyond the scope of the
submission to arbitration; or
(vi) the composition of the arbitral tribunal or the

arbitral procedure was not in accordance with the
agreement of the parties, unless such agreement
was in conflict with a provision of this Act from
which the parties cannot derogate, or, failing
such agreement, was not in accordance with this
Act; or
the High Court finds that—

(b)
(i) the subject matter of the dispute is not capable

of settlement by arbitration under the laws of
Malaysia; or
(ii) the award is in conflict with the public policy of

Malaysia.
(2) Without limiting the generality of subparagraph (1)(b)(ii), an

award is in conflict with the public policy of Malaysia where—
the making of the award was induced or affected by fraud

(a)
or corruption; or
a breach of the rules of natural justice occurred—

(b)
(i) during the arbitral proceedings; or
(ii) in connection with the making of the award.
(3) Where the decision on matters submitted to arbitration

can be separated from those not so submitted, only that part of
the award which contains decisions on matters not submitted to
arbitration may be set aside.
Act 646 BI.indd 36 10/30/18 8:12 AM

Arbitration 37
(4) An application for setting aside may not be made after the
expiry of ninety days from the date on which the party making
the application had received the award or, if a request has been
made under section 35, from the date on which that request had
been disposed of by the arbitral tribunal.
(5) Subsection (4) does not apply to an application for setting

aside on the ground that the award was induced or affected by
fraud or corruption.
(6) On an application under subsection (1) the High Court

may, where appropriate and so requested by a party, adjourn
the proceedings for such period of time as it may determine in
order to allow the arbitral tribunal an opportunity to resume the
arbitral proceedings or to take such other action as in the arbitral
tribunal’s opinion will eliminate the grounds for setting aside.
(7) Where an application is made to set aside an award, the

High Court may order that any money made payable by the
award shall be brought into the High Court or otherwise secured
pending the determination of the application.
Chapter 8
Recognition and enforcement of awards
Recognition and enforcement
38. (1) On an application in writing to the High Court, an award

made in respect of an arbitration where the seat of arbitration is
in Malaysia or an award from a foreign State shall, subject to this
section and section 39 be recognized as binding and be enforced
by entry as a judgment in terms of the award or by action.
(2) In an application under subsection (1) the applicant shall

produce—
the duly authenticated original award or a duly certified

(a)
copy of the award; and
the original arbitration agreement or a duly certified copy

(b)
of the agreement.
Act 646 BI.indd 37 10/30/18 8:12 AM

(3) Where the award or arbitration agreement is in a language

other than the national language or the English language, the
applicant shall supply a duly certified translation of the award
or agreement in the English language.
(4) For the purposes of this Act, “foreign State” means a

State which is a party to the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards adopted by the United
Nations Conference on International Commercial Arbitration in 1958.
Grounds for refusing recognition or enforcement
39. (1) Recognition or enforcement of an award, irrespective

of the State in which it was made, may be refused only at the
request of the party against whom it is invoked—
where that party provides to the High Court proof that—

(a)
(i) a party to the arbitration agreement was under

any incapacity;
(ii) the arbitration agreement is not valid under the

law to which the parties have subjected it, or,
failing any indication thereon, under the laws
of the State where the award was made;
(iii) the party making the application was not given

proper notice of the appointment of an arbitrator
or of the arbitral proceedings or was otherwise
unable to present that party’s case;
(iv) the award deals with a dispute not contemplated by

or not falling within the terms of the submission
to arbitration;
(v) subject to subsection (3), the award contains

decisions on matters beyond the scope of the
submission to arbitration;
(vi) the composition of the arbitral tribunal or the

arbitral procedure was not in accordance with the
agreement of the parties, unless such agreement
Act 646 BI.indd 38 10/30/18 8:12 AM

Arbitration 39
was in conflict with a provision of this Act from

which the parties cannot derogate, or, failing
such agreement, was not in accordance with this
Act; or
(vii) the award has not yet become binding on the

parties or has been set aside or suspended by a
court of the country in which, or under the law
of which, that award was made; or
if the High Court finds that—

(b)
(i) the subject-matter of the dispute is not capable

of settlement by arbitration under the laws of
Malaysia; or
(ii) the award is in conflict with the public policy of

Malaysia.
(2) If an application for setting aside or suspension of an award

has been made to the High Court on the grounds referred to in
subparagraph (1)(a)(vii), the High Court may, if it considers it
proper, adjourn its decision and may also, on the application of
the party claiming recognition or enforcement of the award, order
the other party to provide appropriate security.
(3) Where the decision on matters submitted to arbitration can

be separated from those not so submitted, only that part of the
award which contains decisions on matters submitted to arbitration
may be recognized and enforced.
Part III
ADDITIONAL PROVISIONS RELATING TO ARBITRATION
Consolidation of proceedings and concurrent hearings
40. (1) The parties may agree—
that the arbitration proceedings shall be consolidated with

(a)
other arbitration proceedings; or
that concurrent hearings shall be held,

(b)
on such terms as may be agreed.
Act 646 BI.indd 39 10/30/18 8:12 AM

(2) Unless the parties agree to confer such power on the

arbitral tribunal, the tribunal has no power to order consolidation
of arbitration proceedings or concurrent hearings.
Determination of preliminary point of law by court
41. (1) Any party may apply to the High Court to determine
any question of law arising in the course of the arbitration—
with the consent of the arbitral tribunal; or

(a)
with the consent of every other party.

(b)
(2) The High Court shall not consider an application under

subsection (1) unless it is satisfied that the determination—
is likely to produce substantial savings in costs; and

(a)
substantially affects the rights of one or more of the

(b)
parties.
(3) The application shall identify the question of law to be

determined and, except where made with the agreement of all
parties to the proceedings, shall state the grounds that support
the application.
(4) While an application under subsection (1) is pending, the

arbitral proceedings may be continued and an award may be
made.
Disclosure of information relating to arbitral proceedings and

award prohibited
41a. (1) Unless otherwise agreed by the parties, no party may

publish, disclose or communicate any information relating to—
the arbitral proceedings under the arbitration agreement;

(a)
or
an award made in those arbitral proceedings.

(b)
Act 646 BI.indd 40 10/30/18 8:12 AM

Arbitration 41
(2) Nothing in subsection (1) shall prevent the publication,

disclosure or communication of information referred to in that
subsection by a party—
if the publication, disclosure or communication is made—

(a)
(i) to protect or pursue a legal right or interest of

the party; or
(ii) to enforce or challenge the award referred to in

that subsection,
in legal proceedings before a court or other judicial

authority in or outside Malaysia;
if the publication, disclosure or communication is made to

(b)
any government body, regulatory body, court or tribunal
and the party is obliged by law to make the publication,
disclosure or communication; or
if the publication, disclosure or communication is made

(c)
to a professional or any other adviser of any of the
parties.
Proceedings to be heard otherwise than in open court
41b. (1) Subject to subsection (2), court proceedings under this

Act are to be heard otherwise than in an open court.
(2) Notwithstanding subsection (1), the court may order the

proceedings to be heard in an open court—
on the application of any party; or

(a)
if, in any particular case, the court is satisfied that those

(b)
proceedings ought to be heard in an open court.
(3) An order of the court under subsection (2) is final.
42—43. (Deleted by Act A1569).
Act 646 BI.indd 41 10/30/18 8:12 AM

Costs and expenses of an arbitration
44. (1) Unless otherwise agreed by the parties—
the costs and expenses of an arbitration shall be in the

(a)
discretion of the arbitral tribunal who may—
(i) direct to and by whom and in what manner those

costs or any part thereof shall be paid;
(ii) tax or settle the amount of such costs and expenses;

and
(iii) award such costs and expenses to be paid as

between solicitor and client;
any party may apply to the High Court for the costs to be
(b)
taxed where an arbitral tribunal has in its award directed
that costs and expenses be paid by any party, but fails
to specify the amount of such costs and expenses within
thirty days of having being requested to do so; or
each party shall be responsible for its own legal and

(c)
other expenses and for an equal share of the fees and
expenses of the arbitral tribunal and any other expenses
relating to the arbitration in the absence of an award
or additional award fixing and allocating the costs and
expenses of the arbitration.
(2) Unless otherwise agreed by the parties, where a party

makes an offer to the other party to settle the dispute or part of
the dispute and the offer is not accepted and the award of the
arbitral tribunal is no more favourable to the other party than
was the offer, the arbitral tribunal, in fixing and allocating the
costs and expenses of the arbitration, may take the fact of the
offer into account in awarding costs and expenses in respect of
the period from the making of the offer to the making of the
award.
(3) An offer to settle made under subsection (2) shall not be

communicated to the arbitral tribunal until it has made a final
determination of all aspects of the dispute other than the fixing
and allocation of costs and expenses.
Act 646 BI.indd 42 10/30/18 8:12 AM

Arbitration 43
(4) Where an arbitral tribunal refuses to deliver its award before

the payment of its fees and expenses, the High Court may order
the arbitral tribunal to deliver the award on such conditions as
the High Court thinks fit.
(5) A taxation of costs, fees and expenses under this section

may be reviewed in the same manner as a taxation of costs.
Extension of time for commencing arbitration proceedings
45. Where an arbitration agreement provides that arbitral proceedings

are to be commenced within the time specified in the agreement,
the High Court may, notwithstanding that the specified time has
expired, extend the time for such period and on such terms as it
thinks fit, if it is of the opinion that in the circumstances of the
case undue hardship would otherwise be caused.
Extension of time for making award
46. (1) Where the time for making an award is limited by the
arbitration agreement, the High Court may, unless otherwise
agreed by the parties, extend that time.
(2) An application under subsection (1) may be made—
upon notice to the parties, by the arbitral tribunal; or

(a)
upon notice to the arbitral tribunal and the other parties,

(b)
by any party to the proceedings.
(3) The High Court shall not make an order unless—
all available tribunal processes for obtaining an extension

(a)
of time have been exhausted; and
the High Court is satisfied that substantial injustice would

(b)
otherwise be done.
(4) T h e H i g h C o u r t m a y e x e r c i s e i t s p o w e r s u n d e r
subsection (1) notwithstanding that the time previously fixed by
or under the arbitration agreement or by a previous order has
expired.
Act 646 BI.indd 43 10/30/18 8:12 AM

Part IV
MISCELLANEOUS
Liability of arbitrator
47. An arbitrator shall not be liable for any act or omission in

respect of anything done or omitted to be done in the discharge
of his functions as an arbitrator unless the act or omission is
shown to have been in bad faith.
Immunity of arbitral institutions
48. The Director of the Asian International Arbitration Centre

(Malaysia) or any other person or institution designated or
requested by the parties to appoint or nominate an arbitrator,
shall not be liable for anything done or omitted in the discharge
of the function unless the act or omission is shown to have been
in bad faith.
Bankruptcy
49. (1) Where a party to an arbitration agreement is a bankrupt

and the person having jurisdiction to administer the property of
the bankrupt adopts the agreement, the arbitration agreement shall
be enforceable by or against that person.
(2) The High Court may direct any matter in connection with
or for the purpose of bankruptcy proceedings to be referred to
arbitration if—
the matter is one to which the arbitration agreement

(a)
applies;
the arbitration agreement was made by a person who has

(b)
been adjudged a bankrupt before the commencement of
the bankruptcy proceedings; and
the person having jurisdiction to administer the property

(c)
does not adopt the agreement.
Act 646 BI.indd 44 10/30/18 8:12 AM

Arbitration 45
(3) An application under subsection (2) may be made by—
any other party to the arbitration agreement; or

(a)
any person having jurisdiction to administer the property

(b)
of the bankrupt.
Mode of application
50. Any application to the High Court under this Act shall be
by an originating summons as provided in the *Rules of the High
Court 1980 [P.U. (A) 50/1980].
Repeal and savings
51. (1) The Arbitration Act 1952 [Act 93] and the Convention
on the Recognition and Enforcement of Foreign Arbitral Awards
Act 1985 [Act 320] are repealed.
(2) Where the arbitral proceedings were commenced before

the coming into operation of this Act, the law governing the
arbitration agreement and the arbitral proceedings shall be the law
which would have applied as if this Act had not been enacted.
(3) Nothing in this Act shall affect any proceedings relating

to arbitration which have been commenced in any court before
the coming into operation of this Act.
(4) Any court proceedings relating to arbitration commenced

after the commencement of this Act shall be governed by this
Act notwithstanding that such proceedings arose out of arbitral
proceedings commenced before the commencement of this Act.
*
NOTE—Rules of the High Court 1980 [P.U. (A) 50/1980] has since been
repealed by the Rules of Courts 2012 [P. U. (A) 205/2012] – see Order 94
P. U. (A) 205/2012.
Act 646 BI.indd 45 10/30/18 8:12 AM

LAWS OF MALAYSIA
Act 646
LIST OF AMENDMENTS
Amending law Short title In force from
Akta A1395 Arbitration 01-07-2011

(Amendment) Act 2011
Akta A1563 Arbitration 28-02-2018

(Amendment) Act 2018
Act A1569 Arbitration 08-05-2018

(Amendment) (No. 2)
Act 2018
Act 646 BI.indd 46 10/30/18 8:12 AM

Arbitration 47
LAWS OF MALAYSIA
Act 646
LIST OF SECTIONS AMENDED
Section Amending authority In force from
2 Act A1395 01-07-2011

Act A1569 08-05-2018
3a Act A1569 08-05-2018
4 Act A1569 08-05-2018
8 Act A1395 01-07-2011
9 Act A1569 08-05-2018
10 Act A1395 01-07-2011
11 Act A1395 01-07-2011

Act A1569 08-05-2018
19 Act A1569 08-05-2018
19a – 19j Act A1569 08-05-2018
30 Act A1395 01-07-2011

Act A1569 08-05-2018
33 Act A1569 08-05-2018
38 Act A1395 01-07-2011
39 Act A1395 01-07-2011
41a – 41b Act A1569 08-05-2018
42 Act A1395 01-07-2011

Act A1569 08-05-2018
Act 646 BI.indd 47 10/30/18 8:12 AM

Section Amending authority In force from
43 Act A1569 08-05-2018
51 Act A1395 01-07-2011
General Act A1563 28-02-2018

amendment
Hakcipta Pencetak H
PERCETAKAN NASIONAL MALAYSIA BERHAD
Semua Hak Terpelihara. Tiada mana-mana bahagian jua daripada penerbitan ini boleh diterbitkan semula atau disimpan di dalam bentuk
yang boleh diperolehi semula atau disiarkan dalam sebarang bentuk dengan apa jua cara elektronik, mekanikal, fotokopi, rakaman dan/
atau sebaliknya tanpa mendapat izin daripada Percetakan Nasional Malaysia Berhad (Pencetak kepada Kerajaan Malaysia yang
dilantik).
DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA
WJW011766 20-09-2018
Act 646 BI.indd 48 10/30/18 8:12 AM

Laws of Malaysia Arbitration Act Amandemen 2018

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Arbitration 1

ARBITRATION ACT 2005

Act 646 BI.indd 1 10/30/18 8:12 AM

ARBITRATION ACT 2005

Date of Royal Assent … … … … 30 December 2005

Date of publication in the Gazzette … … 31 December 2005

English text to be authoritative … … P.U. (B) 61/2006

Latest amendment made by

First Reprint … … … … … 2006

Act 646 BI.indd 2 10/30/18 8:12 AM

ARBITRATION ACT 2005

1. Short title and commencement

6. Receipt of written communications

9. Definition and form of arbitration agreement

Act 646 BI.indd 3 10/30/18 8:12 AM

12. Number of arbitrators

18. Competence of arbitral tribunal to rule on its jurisdiction

20. Equal treatment of parties

Act 646 BI.indd 4 10/30/18 8:12 AM

30. Law applicable to substance of dispute

37. Application for setting aside

38. Recognition and enforcement

40. Consolidation of proceedings and concurrent hearings

Act 646 BI.indd 5 10/30/18 8:12 AM

47. Liability of arbitrator

Act 646 BI.indd 6 10/30/18 8:12 AM

ARBITRATION ACT 2005

An Act to reform the law relating to domestic arbitration, provide

[15 March 2006, P.U. (B) 65/2006]

ENACTED by the Parliament of Malaysia as follows:

Short title and commencement

1. (1) This Act may be cited as the Arbitration Act 2005.

(2) This Act comes into operation on a date to be appointed

2. (1) In this Act, unless the context otherwise requires—

“award” means a decision of the arbitral tribunal on the substance

Act 646 BI.indd 7 10/30/18 8:12 AM

“Minister” means the Minister charged with the responsibility

“State” means a sovereign State and not a component state of

“presiding arbitrator” means the arbitrator designated in the

“arbitration agreement” means an arbitration agreement as

“party” means a party to an arbitration agreement or, in any

“seat of arbitration” means the place where the arbitration is

“international arbitration” means an arbitration where—

(a) one of the parties to an arbitration agreement, at the time

one of the following is situated in any State other than

(i) the seat of arbitration if determined in, or pursuant

(ii) any place where a substantial part of the obligations

Act 646 BI.indd 8 10/30/18 8:12 AM

the parties have expressly agreed that the subject matter

“domestic arbitration” means any arbitration which is not an

“arbitral tribunal” means an emergency arbitrator, a sole

(2) For the purposes of this Act—

(a) in the definition of “international arbitration”—

(i) where a party has more than one place of business,

(ii) where a party does not have a place of business,

where a provision of this Act, except section 3, leaves the

where a provision of this Act refers to the fact that the

where a provision of this Act refers to a claim, other than