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.
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