1. KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION (KLRCA)
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2. Overview 1. About KLRCA Overview Role Services Governance Facilities
Fees 2.
Why arbitration
Road to Arbitration: Commercial Dispute
Why KLRCA
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3. 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.
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4. 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
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5. 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.
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6. Services Arbitration Mediation / Conciliation
Islamic Banking and Financial Services Arbitration
Online Dispute Resolution (Domain Name Dispute Resolution)
ADR Related Training
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7. Governance Director: Mr. Sundra Rajoo KLRCA’s Staff
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8. 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.
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9. 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
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10. KLRCA
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11. 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
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12. 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*
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13. 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
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14. 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
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15. 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.
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16. 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
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17. Regional Resolution Global Solution
KLRCA homepage:
Kuala Lumpur Regional Centre for Arbitration
No 12, Jalan Conlay, Kuala Lumpur
Tel: / 0702
Fax:
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18. THANK YOU
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