Arbitration Lawyers in Malaysia
Our arbitration lawyers act in domestic and international arbitrations under the Arbitration Act 2005, from stay applications and interim measures through to the hearing, and in setting aside or enforcing awards in the Malaysian courts.
- Domestic and international arbitration
- Stay and interim applications
- Setting aside and enforcement
- Online consultations
How We Can Help
- Advising on arbitration clauses and dispute strategy
- Stay of court proceedings under section 10
- Urgent interim measures from the court or tribunal
- Appointment of and challenges to arbitrators
- AIAC and ad hoc arbitration proceedings and hearings
- Setting aside, recognising and enforcing arbitral awards
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Reviewed by Ms. Khoo Ai Theng, Founder, Advocate & Solicitor of the High Court of Malaya. Last updated October 2026.
Why Choose Us?
15+ Years
Legal experience
90 Days
To apply to set aside an award, s 37(4)
MIArb Member
Lawyer Khoo, Malaysian Institute of Arbitrators
6 Years
To enforce an award, Limitation Act 1953
What law governs arbitration in Malaysia?
Arbitration in Malaysia is governed by the Arbitration Act 2005 (Act 646), which is based on the UNCITRAL Model Law and covers both domestic and international arbitration. It was substantially amended by the Arbitration (Amendment) (No. 2) Act 2018, in force from 8 May 2018. A 2024 amending Act (Act A1737), which adds rules on third-party funding and on the law governing the arbitration agreement, comes into force on dates appointed by the Minister.
- An award is final and binding on the parties (s 36), and the courts may intervene only where the Act provides (s 8).
- A dispute the parties agreed to arbitrate can be arbitrated unless the agreement is contrary to public policy or the subject matter cannot be settled by arbitration under Malaysian law (s 4).
- Part III of the Act, which includes court powers to decide a preliminary point of law and extend time, applies to domestic arbitrations unless the parties opt out in writing, and to international arbitrations only if they opt in (s 3).
- A party may be represented by any representative it appoints (s 3A).
The Asian International Arbitration Centre (AIAC) in Kuala Lumpur, formerly the KLRCA, is the main arbitral institution. The AIAC Arbitration Rules 2026 took effect on 1 January 2026, and earlier editions continue to govern arbitrations commenced under them.
When will the Malaysian courts step in?
The courts support arbitration rather than replace it, and intervene only in the situations the Act allows.
- If one party sues in court on a matter covered by an arbitration agreement, the court must stay the action and refer the parties to arbitration, unless the agreement is null and void, inoperative or incapable of being performed. The stay must be sought before taking any other step in the proceedings, such as filing a defence (s 10).
- Before or during the arbitration, the High Court can order interim measures, such as maintaining the status quo, preserving assets or evidence, or security for costs (s 11). Some of these powers apply even where the seat is outside Malaysia.
- Interim measures issued by a tribunal, including an emergency arbitrator, are binding and can be enforced through the court, subject to limited grounds for refusal (ss 19H and 19I).
- If a party fails to appoint an arbitrator within 30 days of a written request, and no other procedure was agreed, the other party can ask the AIAC to appoint. If the AIAC does not act within 30 days, the High Court can (s 13).
- A party may ask the High Court to decide a jurisdiction objection within 30 days of receiving the tribunal’s preliminary ruling on it (s 18(8)).
How does an arbitration run, and what affects the cost?
An arbitration follows the arbitration agreement, the chosen rules and the Act, and usually moves through five stages.
- The claimant sends a written notice or request for arbitration, as the agreement and rules require.
- The tribunal is constituted, either by the parties’ nominations or through the default appointment process.
- The tribunal fixes the procedure and timetable, and can rule on its own jurisdiction, including objections to the validity of the arbitration agreement (s 18).
- The parties exchange pleadings, documents and witness statements, and the matter proceeds to a hearing.
- The tribunal issues a written award, which may include interest before and after the award (s 33).
Proceedings and awards are confidential, subject to limited exceptions, unless the parties agree otherwise (s 41A), and related court proceedings are not heard in open court unless the court orders otherwise (s 41B). Under the AIAC Arbitration Rules 2026, a fast track procedure is available for domestic claims below RM2 million and international claims below USD3 million, with the award due within six months of the tribunal’s constitution unless the parties agree otherwise.
Cost depends on the number of arbitrators and their fees, institutional fees, the volume of documents, the number of hearing days and whether technical or valuation evidence is needed.
How can an award be set aside or enforced?
An award can be challenged only by applying to the High Court to set it aside, within 90 days from the date the applicant received the award, or from the date the tribunal disposed of a request under s 35 to correct or interpret it (s 37(4)).
- The grounds are limited to incapacity of a party, an invalid arbitration agreement, lack of proper notice or inability to present one’s case, an award outside the scope of the submission, irregular composition or procedure, non-arbitrable subject matter, and conflict with public policy, which includes fraud, corruption or a breach of natural justice (s 37).
- Since 2018 there is no reference to the High Court on questions of law arising from an award, because ss 42 and 43 were repealed.
- To enforce, the award holder applies to the High Court under s 38 by originating summons (Order 69 rule 8, Rules of Court 2012), producing the authenticated award and the arbitration agreement. The other side has 14 days after service of the order to apply to set it aside, and enforcement can be refused only on s 39 grounds.
In Peninsular Malaysia, enforcement must generally start within six years (s 6(1)(c), Limitation Act 1953). Once entered as a judgment, an award is enforced like any judgment, including through debt recovery.
How does arbitration interact with CIPAA adjudication?
In Malaysian construction disputes, payment claims often go to statutory adjudication under the Construction Industry Payment and Adjudication Act 2012 (Act 746), known as CIPAA, while the wider dispute is resolved in arbitration. The two run on separate tracks and can overlap.
- A payment dispute may be referred to adjudication, arbitration or the court concurrently, and starting an arbitration does not end or affect a pending adjudication (s 37 CIPAA).
- An adjudication decision is binding unless it is set aside by the High Court, the matter is settled by written agreement, or the dispute is finally decided by arbitration or the court (s 13 CIPAA).
- A party may ask the High Court to stay an adjudication decision while its subject matter is pending final determination in arbitration or court (s 16), and the successful party can apply to enforce the decision as if it were a High Court judgment (s 28).
- A 2024 amending Act (Act A1738) updates CIPAA to refer to the AIAC, which administers adjudication, in place of its former name, the KLRCA.
This means a contractor can recover payment through adjudication while final account, delay or defects claims proceed in arbitration. Our construction and CIPAA practice plans both tracks together.
How NZSK handles arbitration matters
We start with a consultation, online or in person, and advise only after reviewing the contract, the arbitration clause and the key notices, correspondence or award. We do not advise on a description of the dispute alone.
- Bring the signed contract and any variations, the arbitration clause and any rules it names, notices of dispute or arbitration, invoices and payment records, and the award if one has been issued.
- We check the deadlines first, including contractual notice periods, the 30-day appointment and jurisdiction periods and the 90-day setting-aside period.
- We advise on the right forum, whether court, arbitration or CIPAA adjudication, and on urgent applications such as a stay or an interim measure.
- We prepare the pleadings, witness statements and submissions, conduct the hearing and handle related court applications.
Ms. Khoo Ai Theng (Maxine Khoo), a partner and Advocate & Solicitor of the High Court of Malaya admitted in 2014, is an admitted member of the Malaysian Institute of Arbitrators and acts in civil and corporate litigation and construction disputes. Where a dispute belongs in court rather than arbitration, we explain why and handle it through our civil and commercial disputes practice. We give a fee quotation after the consultation.
Frequently Asked Questions
In Malaysia, an application to set aside an arbitral award must be made to the High Court within 90 days from the date the applicant received the award, under section 37(4) of the Arbitration Act 2005. If a request to correct or interpret the award was made to the tribunal under section 35, time runs from the date that request was disposed of. The grounds are limited and do not allow a general appeal on the merits.
You can file a court action, but in Malaysia the other party can apply to stay it under section 10 of the Arbitration Act 2005. The court must stay the action and refer the parties to arbitration if the application is made before taking any other step in the proceedings, unless the arbitration agreement is null and void, inoperative or incapable of being performed.
In Malaysia, an arbitral award is enforced by applying in writing to the High Court under section 38 of the Arbitration Act 2005, by originating summons under Order 69 of the Rules of Court 2012, with the authenticated award and the arbitration agreement. Once the order is served, the other party has 14 days to apply to set it aside. The award can then be enforced like a court judgment.
Yes. In Malaysia, an award made in a State that is a party to the 1958 New York Convention can be recognised and enforced by the High Court under section 38 of the Arbitration Act 2005, in the same way as an award from an arbitration seated in Malaysia. Recognition or enforcement may be refused only on the limited grounds in section 39, such as conflict with the public policy of Malaysia.
In Malaysia, if the parties have not agreed an appointment procedure and a party fails to appoint an arbitrator within 30 days of a written request, the other party can ask the Asian International Arbitration Centre (AIAC) to make the appointment under section 13 of the Arbitration Act 2005. If the AIAC does not act within 30 days of the request, any party may apply to the High Court.
In Malaysia, CIPAA adjudication is a fast statutory process for payment disputes under construction contracts, with the decision generally due within 45 working days of the response or reply. The decision binds the parties unless set aside, settled in writing or finally decided by arbitration or the court (section 13 CIPAA 2012). Arbitration produces a final award on the whole dispute, and both can run at the same time. See our CIPAA page.
The length of an arbitration in Malaysia depends on the size of the dispute, the number of arbitrators, the volume of evidence and how the parties conduct the case. Under the AIAC Arbitration Rules 2026, a fast track procedure is available for domestic claims below RM2 million and international claims below USD3 million, with the award due within six months of the tribunal's constitution unless the parties agree otherwise. Larger disputes usually take longer.
The cost of arbitration in Malaysia depends on the number of arbitrators and their fees, the institution's administrative fees, the amount in dispute, the volume of documents, the number of hearing days and whether technical or valuation witnesses are needed. The award usually deals with which party bears the costs. NZSK gives a fee quotation after reviewing the contract and documents at a consultation, online or in person.
Facing an arbitration or need to enforce an award?
Arbitration time limits are short, including the 90 days to apply to set aside an award, so it pays to act early. We advise once we have reviewed your documents at a consultation, online or in person, at our Puchong or Mont Kiara office.
- (+60)12-401 4799 | (+60)3-8060 0267
- [email protected]
Consultation by appointment at Mont Kiara, Kuala Lumpur and Puchong, Selangor, or online.
