Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SHANGRI-LA HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	04/07/89 
Tajuk/Title  	: 	THE OCCASION OF THE OFFICIAL 
			OPENING OF THE CONFERENCE ON 
			INTERNATIONAL COMMERCIAL 
			ARBITRATION 




 Puan P.G. Lim;
Excellencies;
Distinguished Guests;
Ladies and Gentlemen.
    I  am  happy  to have been invited to open this two-day
Conference organised by the Kuala Lumpur Regional Centre for
International Commercial Arbitration.
2.   When I opened the first Conference on  this  topic  ten
years ago, the Regional Centre had just come into existence.
It  had been established "by way of an experimental measure"
to  quote  the  then  Secretary General of the Asian African
Legal   Consultative  Committee  (AALCC), Mr.  B.  Sen.  Its
purpose  was  to  encourage the use of  arbitration  in  the
Asia-Pacific Region as  an  alternative to litigation in the
courts for  dispute resolution in  international  commercial
contracts. It was to  supply a  mechanism,   especially  for
developing countries like Malaysia, which do  not  have  the
tradition  or  an adequate and  efficient  system   for  the
settlement  of  disputes  by  arbitration.  In  a  way,  the
establishment of the Centre was to  anticipate  the  growing
need  for  a  fair  and  expeditious  resolution of disputes
in the context of rapidly expanding trade between  East  and
West especially in construction contracts.
3.   As stated in the introductory notes to the programme of
this Conference, because arbitration takes place in private,
confidentiality  is assured.   Businessmen do not like their
problems and technical secrets to be  aired  in  public  for
for it sours the  relationship  between  parties  who  have,
if possible, to continue  afterwards to carry out a contract
to  its conclusion.  They  also do not like their money held
up for too long.  The wide use  of  the  arbitration process
would   also ease  caseload  congestion  of the  courts and,
in this  context,  a  sympathetic  attitude  of  the  courts
towards  the  practice  of  arbitration  would  do  much  to
promote  the  use  of  arbitration  in  settling  commercial
disputes as an alternative to litigation.
4.   In order to enhance confidence in the arbitral process,
arbitrators must conduct the proceedings  with  impartiality
and  independence,  and  I note that these important factors
are to be discussed at this Conference including  a  Code of
Ethics for Arbitrators.
Ladies and gentlemen,
5.   In 1979 when I opened the first Conference conducted by
the Centre, I said I would be recommending to the Government
that  Malaysia  would  be  acceding  to  the  1958  New York
Convention  for  the  Recognition and Enforcement of Foreign
Arbitral   Awards.  I  also  gave  an   assurance  that  the
Government  would respect  the  independent  functioning  of
the Centre as an international arbitral institution and that
we  would be  examining the relevant national legislation on
arbitration to reflect this.  Malaysia  has  indeed  acceded
to the Convention, and this should mean that  awards  handed
down  in  arbitration proceedings held under the auspices of
the  Centre  are  capable  of  enforcement  both within  and
outside  Malaysia in  countries  which  have  acceded to the
Convention.
6.   We  have  also  amended  the  Arbitration Act to remove
arbitrations conducted under the Rules of the  Kuala  Lumpur
Centre  from  the supervision of the Courts.  This advantage
is open to any party from the region or  elsewhere  who  may
choose  to arbitrate under the  Rules  of the  Kuala  Lumpur
Regional Centre.
7.  I understand that since the Kuala Lumpur Regional Centre
was established  in 1978,  several  other  national arbitral
institutions  have  been  established  in  the  Asia-Pacific
region  to cater for the needs of businessmen in the context
of  expanding trade and the opening up of new markets in the
Pacific  Rim.  The new  Centres are  those of Vancouver, Los
Angeles, Sydney,  Melbourne, Darwin and Hong Kong.
8.   It appears that the establishment of the  Kuala  Lumpur
Regional  Centre  has  spurred  the  establishment  of these
Centres  which  indicate  an  increased  awareness  of   the
usefulness  of  arbitration  and  other  procedures such  as
mediation or conciliation or  negotiation  and the need  for
speedy dispute resolution in private and away from the glare
of publicity.  I am  glad  to  know  that  the Kuala  Lumpur
Regional Centre has  begun to administer arbitrations and is
also helping  to  promote  the  idea  of arbitration in  the
domestic context as well.
Ladies and gentlemen,
9.   The  Government of Malaysia has gone a long way to help
create  a   favourable   environment  for   the  conduct  of
international commercial arbitrations at the Regional Centre
for  Arbitration.  Since the Centre was established, we have
seen  the  emergence  of    other    arbitral    institution        s
in     the      Pacific       Rim.      In    short,     the
arbitral     scenario     has     changed  and  is  changing
rapidly  as  more  and  more  new players enter the field to
cater for the new markets which are opening up as the  newly
industrialised countries or the NICs take their places among
the  industrialised  nations and the industrial base of Asia
becomes larger and more diversified.
10.  This gathering from so many countries  will  provide  a
useful  forum  for  the exchange of ideas and experiences on
the various methods of dispute settlement.  Your response to
the changing demands  and  realities  of  the  international
business  community,  will hopefully    reflect  the    need
for        fresh         approaches         to          such
such alternative dispute resolution techniques.
Ladies and gentlemen,
11.  In  conclusion,  I  wish  all  participants  a fruitful
deliberation and I have much pleasure in declaring open this
Conference.