KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION (KLRCA) Regional Resolution Global Solution

Overview 1. About KLRCA Overview Role Services Governance Facilities Fees 2. Arbitration@KLRCA Why arbitration Road to Arbitration: Commercial Dispute Why KLRCA Regional Resolution Global Solution

About KLRCA OVERVIEW Established in 1978 under the auspices of the Asian-African Legal Consultative Organisation AALCO. First regional centre established by AALCO in Asia A non-profit non-governmental international arbitral institution, supported by, but independent of, the Government of Malaysia Administered by a Director under the supervision of the Secretary General of AALCO. Accorded certain privileges and immunities for the purposes of executing its functions ABOUT KLRCA The Kuala Lumpur Regional Centre for Arbitration (KLRCA) was established in 1978 under the auspices of the Asian-African Legal Consultative Organisation (AALCO). KLRCA was the first regional centre established by AALCO in Asia to provide institutional support in a neutral and independent venue for the conduct of domestic and international arbitration proceedings in Asia. KLRCA is a non-profit non-governmental international arbitral institution. Pursuant to an agreement between the Government of Malaysia and AALCO, the Government of Malaysia supported the establishment of a regional centre for commercial arbitration in Kuala Lumpur and agreed to provide the facilities for the establishment and functioning of such a centre. KLRCA is administered by a Director under the supervision of the Secretary General of AALCO. The Government of Malaysia has accorded KLRCA independence and certain privileges and immunities for the purposes of executing its functions as an international institution. Regional Resolution Global Solution

Role Promote international commercial arbitration in the Asia-Pacific region. Administer international and domestic arbitration and mediation under the KLRCA Rules UNCITRAL Arbitration Rules with modifications and adaptations UNCITRAL Conciliation/ Mediation Rules Administer international and domestic .my domain name disputes. Administer generic top level domain name disputes Appoint Arbitrators for disputing parties as and when requested by them as the default appointing authority under the Malaysian Arbitration Act 2005. Render assistance in the enforcement of awards. Director USP New York treaty Services Business benefits Regional Resolution Global Solution

Arbitration Rules Update United Nations Commission on International Trade Law adopted the latest UNCITRAL Arbitration Rules 2010 in June 2010. KLRCA is the first arbitration centre (worldwide) to adopt and facilitate arbitration in accordance to the UNCITRAL Arbitration Rules 2010. Regional Resolution Global Solution

Services Arbitration Mediation / Conciliation Islamic Banking and Financial Services Arbitration Online Dispute Resolution (Domain Name Dispute Resolution) ADR Related Training Regional Resolution Global Solution

Governance Director: Mr. Sundra Rajoo KLRCA’s Staff Regional Resolution Global Solution

Facilities KLRCA is located in the heart of the city centre, in the vicinity of several hotels. Facilities and related services include: Six (6) Hearing rooms. Two (2) Consultation/ Breakout rooms. Resource Centre. Tele & Video Conferencing. Secretarial Service. Interpreters and Transcribers available On Request. Coffee Terrace. Ample free parking space. Regional Resolution Global Solution

Fees Fees are fixed based on the actual expenses incurred Borne by the parties in such proportion as may be determined in the arbitral award Arbitrators fees depend on several factors such as the complexity of the case, the nature of the dispute, length of hearings and the eminence and standing of the arbitrators Fees will be fixed in each case in accordance with the schedule of fees, and after consultation with the arbitrators and the parties Regional Resolution Global Solution

Arbitration @ KLRCA Regional Resolution Global Solution

Why Arbitration? Arbitration is the preferred method of dispute resolution for international commerce Timely and cost effective means of resolving commercial disputes Flexibility of appointing arbitrators, the governing law, the language and the seat of arbitration Confidential proceedings, ensuring the privacy of the parties involved Regional Resolution Global Solution

How? KLRCA Model Clause “Any dispute, controversy or claim arising out of or relating to this contract, or the breach, termination or invalidity thereof shall be settled by arbitration in accordance with the Rules of the Kuala Lumpur Regional Centre for Arbitration”. All commercial contracts should have KLRCA Model Clause* Regional Resolution Global Solution

Road to Arbitration: Commercial Dispute Contract Delivery Payment Dispute!! - Non payment due to late delivery Arbitration proceeding Order of directions. Exchange submissions - Hearings - Closing arguments Preliminary meeting Appointment of arbitrator Where a party does not comply with the Order of Directions, the arbitrator may conduct the proceedings ex parte (provided reasonable notice has been given to the party). Hearings may or may not be conducted, depending on the complexity of the matter. Award will usually be issued in about 8 to 10 weeks after the submissions of closing arguments. Scenario Mr. X, a businessman in Kuala Lumpur, undertakes to supply rubber sheets worth RM350,000 to a factory in Sydney, Australia. Unfortunately, due to a shipping delay, he fails to deliver the goods on the specified date. While the goods ordered did arrive, the factory owner refuses to accept the late consignment. Mr. X is furious as the delivery was delayed due to circumstances beyond his control and wants to enforce his contract with the factory. However, he is in a dilemma as he cannot afford to institute legal proceedings in the courts. Time is of the essence in his business. Mr. Chong wants payment for the goods he had shipped and delivered in good faith.   Fortunately for Mr. X, his contract was drafted and signed to include an arbitration clause. The clause provided that if there was any difference or dispute in connection to the contract, the matter would be referred for arbitration at the Kuala Lumpur Regional Centre of Arbitration (KLRCA) under the Malaysian Arbitration Act 2005 Issuance of Award Regional Resolution Global Solution

Why KLRCA? International Recognition Internationally recognised as an established and neutral forum for amicable resolution of disputes independent and autonomous organisation and not a branch or an agency of the Government immunity to carry out its functions and is independent from court’s interference as an appointing authority (Arbitration Act, 2005) World class Services KLRCA is committed to the highest ethical standards in assuring impartiality and efficiency KLRCA provides first-class Services and Facilities for cost-effective, accurate and timely dispute resolution facilitates dispute settlements by adopting provisions of the internationally recognised UNCITRAL Rules into the KLRCA Rules for Arbitration World class services Section 48 of the Arbitration Act, 2005 provides immunity to KLRCA in the discharge of its function as an appointing authority. Section 36 of the Arbitration Act, 2005 states that an award made by the arbitral tribunal is final and binding Regional Resolution Global Solution

Why KLRCA? Global Expertise Panel of over 200 experienced international and local arbitrators with the strength and knowledge of their respective industries. Foreign lawyers may appear in the proceedings conducted under the KLRCA Rules. - no withholding of tax for non-Malaysian arbitrators/mediators/panelists - no restriction on Foreign Exchange Banking - no work permit required emulates best practices in global alternative dispute resolutions Awards & Enforcement Awards are rendered within 3 months of the Arbitral Tribunal's receipt of the closing oral submission or final written statement Arbitral awards of KLRCA are enforceable in countries which are signatories to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards Appointment of its first ever practicing arbitrator as its Director Close collaboration with Bar Council, MIARB, CIARB and key local and international industry bodies Malaysia is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Arbitral awards made at the Centre under its Rules are enforceable in every country which are signatories to the Convention. Regional Resolution Global Solution

Benefit for Investor, Trading Partner Commercial interest protected Global award enforcement / recognition ADR No judicial involvement No litigation cost Fast track for dispute resolution Confidential proceedings Regional Resolution Global Solution

Regional Resolution Global Solution KLRCA homepage: http://www.rcakl.org.my Kuala Lumpur Regional Centre for Arbitration No 12, Jalan Conlay, 50450 Kuala Lumpur Tel: +6 03-2142 0103 / 0702 Fax: +6 03-2142 4513 E-mail: enquiry@rcakl.org.my Regional Resolution Global Solution Regional Resolution Global Solution

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