Arbitration Act 2005

Original Language Title: Arbitration Act 2005

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Laws of MALAYSIA Act REPRINTING 646 ARBITRATION ACT 2005 Containing all amendments to 1 June 2006 LAWS OF MALAYSIA Act 646 REPRINT ARBITRATION ACT 2005 Incorporating all amendments up to 1 June 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, China UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH PERCETAKAN NASIONAL MALAYSIA BHD 2006 PUBLISHED by the COMMISSIONER of law revision , China UNDER the AUTHORITY of law REVISION ACT 1968 in COLLABORATION with PERCETAKAN NASIONAL MALAYSIA BHD 2006 2 laws of Malaysia ACT 646 ARBITRATION ACT 2005 date of Assent.................. December 30, 2005 date of publication in the Gazette............ as of 31 December 2005 the English text is authentic text in. .. P.u. (B) 61/2006 Arbitration 3 ARRANGEMENT of SECTIONS part I preliminary section 1. Short title and commencement 2. Interpretation 3. The application for arbitration and award in Malaysia 4. Kebolehtimbangtaraan matter 5. Government is bound PART II ARBITRATION Chapter 1 General provisions 6. Receipt of written communications 7. Waiver of right to object 8. Extent of court intervention Chapter 2 the Arbitration Agreement 9. Definition and form of arbitration agreement 10. Arbitration agreement and substantive claim before court 11. Arbitration agreement and interim measures by Court High laws of MALAYSIA Act 646 ARBITRATION ACT 2005 4 laws of Malaysia ACT 646 Chapter 3 membership of the arbitrator section 12. The number of arbitrators 13. Appointment of arbitrator 14. Reason for challenging 15. Challenging procedures 16. Failure or impossibility to Act 17. Appointment of arbitrator replace chapter 4 jurisdiction of the arbitration tribunal 18. Integrity of the arbitration tribunal to decide on its jurisdiction 19. Arbitration tribunal's power to order interim measures Chapter 5 conduct of arbitration proceedings 20. This lovely flat parties 21. Determination of procedure 22. Place of arbitration 23. Commencement of arbitration proceedings 24. Languages 25. Statements of claim and defence 26. The hearing 27. Default of a party 28. Experts appointed by the arbitration tribunal 29. Court assistance in taking evidence Chapter 6 Make award and termination of proceedings 30. Laws applicable to the content dispute 31. Decisions made by the panel of arbitrators Arbitration 5 32. 33 solutions. Form and contents of award 34. Termination of proceedings 35. Correction and interpretation of award or award additional 36. The award shall be final and binding Chapter 7 action against award 37. Application to set aside a chapter 8 Recognition and enforcement award 38. Recognition and enforcement 39. Reason to refuse recognition or enforcement of PART III ADDITIONAL PROVISIONS RELATING to ARBITRATION 40. Consolidation of proceedings and the hearing with 41. Determination of initial legal matters by the Court 42. Reference of question of law 43. Appeal 44. Arbitration costs and expenses 45. Extension of time to commence arbitration proceedings 46. Extension of time for making the award PART IV MISCELLANEOUS 47. Liability of arbitrator 48. Arbitration institutions 49 immunity. Bankruptcy of 50. The way applications 51. Repeal and saving section 6 laws of Malaysia ACT Arbitration 646 7 an act to renew laws relating to domestic arbitration, provide for international arbitration, recognition and enforcement of the award and for matters connected therewith.
[March 15, 2006; P.u. (B) 65/2006] enacted by the Parliament of Malaysia as follows: part I preliminary short title and commencement 1. (1) this Act may be cited as the Arbitration Act 2005.
(2) of this Act come into force on such date as the Minister may, by notification in the Gazette.
Interpretation 2. (1) in this Act, unless the context otherwise requires — "award" means an arbitration tribunal decisions on content disputes and includes any final award, interim or part and any award of costs or benefits but excluding order interlokutori;
Laws of MALAYSIA Act 646 ARBITRATION ACT 2005 8 laws of Malaysia ACT 646 "High Court" means the High Court in Malaya and the High Court in Sabah and Sarawak or any one of which, in accordance with the requirements of the State;
"Minister" means the Minister charged with the responsibility for arbitration;
"Country" means a Country which is sovereign and not a component State in Malaysia, unless specified otherwise;
"an arbitrator Chairman" means an arbitrator set out in the arbitration agreement as an arbitrator of the Chairman or the Chairman of the arbitration tribunal, sole arbitrator or third arbitrator appointed under subsection 13 (3);
"arbitration agreement" means an arbitration agreement as defined in section 9;
"party" means a party to an arbitration agreement or, in any case where an arbitration does not involve all parties to the arbitration agreement that means a party to the arbitration;
"place of arbitration" means the place where the arbitration was founded as determined in accordance with section 22;
"international arbitration" means an arbitration — (a) each of the parties to an arbitration agreement, at the time of the making of the agreement, has its affairs in any country other than Malaysia;
(b) one of the following is in any country other than Malaysia places the parties have their places of business of: (i) the place of arbitration if determined in, or pursuant to, the arbitration agreement;
(ii) any place where most of the obligations of any commercial or other relationship which shall be performed or the place with it matter the dispute the most closely connected; or Arbitration 9 (c) the parties have expressly agreed that the arbitration agreement matter relating to more than one country;
"the domestic arbitration" means any arbitration is not an international arbitration;
"arbitration tribunal" means a sole arbitrator or a panel of arbitrators.
(2) for the purposes of this Act — (a) in the definition of "Arbitration International" — (i) If a party has more than one place of business, reference to place matters is business which has the closest relationship to the arbitration agreement; or (ii) If a party does not have a place of business, reference to the place of ordinary residence is managing the party;
(b) if the provisions of this Act, except section 3 and 30, leaving the parties free to determine a certain issue, such freedom shall include the right of the parties to authorize a third party, including an institution, to decide the issue;
(c) if the provisions of this Act referring to the fact that the parties have agreed or that they may agree or in any other way refers to an agreement of the parties, the agreement shall include any arbitration rules referred to in the agreement;
(d) if the provisions of this Act refers to a claim, in addition to in paragraph 27 (a) and 34 (2) (a), the provisions shall also apply to a counter-claim, and where the provision refers to a defence, the provisions shall also apply to a defence to such counter-claim.
10 laws of Malaysia ACT 646 Application for arbitration and award in Malaysia 3. (1) this Act shall apply throughout Malaysia.
(2) in respect of a domestic arbitration, if the place of arbitration is in Malaysia — (a) part I, II and IV of this Act shall apply; and (b) part III of this Act shall apply unless the parties agree otherwise in writing.
(3) in respect of international arbitration, if the place of arbitration is in Malaysia — (a) part I, II and IV of this Act shall apply; and (b) part III of this Act shall not apply unless the parties agree otherwise in writing.
(4) for the purposes of paragraph (2) (b) and (3) (b), the parties to a domestic arbitration may agree to exclude the application of part III of this Act and the parties to an arbitration can agree to wear international part III of this Act, in whole or in part.
Kebolehtimbangtaraan the case of article 4. (1) any dispute which the parties have agreed to be submitted to arbitration under an arbitration agreement may be determined through arbitration unless the arbitration agreement is contrary to public policy.
(2) the fact that any written law gives jurisdiction in respect of any matter to any court but did not mention about the determination of the matter through arbitration may not, by itself, indicate that a dispute about the matter could not be determined through arbitration.
Arbitration 11 Government is tied 5. This Act shall apply to any arbitration to which the Federal Government or the Government of any State components in Malaysia is a party.
PART II the ARBITRATION Chapter 1 General provisions of receipt of a written communication 6. (1) unless agreed otherwise by the parties — (a) a written communication is deemed to have accepted if it handed over to the recipient itself or if it is delivered at the place of business, the place of usual residence or his address; and

(b) if the place referred to in paragraph (a) could not be found after made a reasonable inquiry, a written communication is deemed to have accepted if it is delivered to the place of business, the place of usual residence or mailing address of the recipient last known by registered letter or any other means which provides a record of the attempt to deliver it.
(2) unless otherwise agreed by the parties, a written communication sent electronically is deemed to have accepted if it is delivered to the recipient's electronic mail address.
12 laws of Malaysia ACT 646 (3) Communication is deemed to have been received on the day of the communication submitted the same.
(4) this section shall not apply to any communication in respect of court proceedings.
Waiver of right to object 7. A party who knows — (a) of any of the provisions of this Act that the parties do not menurutinya; or (b) that any requirement under the arbitration agreement has not been complied with, and still continue the arbitration without stating bantahannya noncompliance without undue delay or, if a time limit is provided for stating that objection, within that time, shall be deemed to have been set aside his right to protest.
Extent of court intervention 8. Unless otherwise provided, no court can intervene in any matter governed by this Act.
Chapter 2 the Arbitration Agreement definition and form of arbitration agreement 9. (1) in this Act, "arbitration agreement" means an agreement by the parties to submit to arbitration all or certain disputes disputes which have arisen or which may arise between them in respect of the relationship legally prescribed, whether contractual or not.
(2) an arbitration agreement may be in the form in the form of an arbitration clause in an agreement or in the form of a separate agreement.
Arbitration 13 (3) an arbitration agreement shall be in writing.
(4) an arbitration agreement is in writing if the Treaty contained in — (a) a document signed by the parties;
(b) an exchange of letters, telex, facsimile or other communication means which provides a record of the agreement; or (c) an exchange of statements of claim and defence in which the existence of an agreement is alleged by one party and not denied by the other party.
(5) a reference in an agreement about a document containing arbitration clause shall be an agreement for arbitration, provided that the agreement is in writing and pronunciation that is such to make that clause part of the deal.
Arbitration agreement and substantive claim before the Court 10. (1) the Court before which proceedings brought in respect of a matter that is the subject of an arbitration agreement shall, if a party make an application before taking any other steps in the proceedings, suspend the proceedings and refer the parties to arbitration unless the Court found — (a) that the agreement is null and void, inoperative or incapable to be implemented; or (b) that in reality no dispute between the parties in relation to the matters to be referred to.
(2) the Court, in allowing a suspension of the proceedings pursuant to subsection (1), may impose such conditions as he may deem fit.
14 laws of Malaysia ACT 646 (3) where proceedings referred to in subsection (1) has been brought, the arbitration proceedings shall be instituted or continued, and an award may be made, while the issue is pending before the Court.
Arbitration agreement and interim measures by the High Court 11. (1) a party may, before or during the arbitration proceedings, apply to the High Court to seek any interim measures and the High Court may, makes the following order for: (a) guarantee costs;
(b) the disclosure of documents and interogatori;
(c) the giving of evidence through the affidavit;
(d) appointment of a receiver;
(e) to ensure the amount in dispute;
(f) interim care, custody or sale of any property on which a matter the dispute;
(g) ensure that any award made in arbitration proceedings not made ineffective through the release of assets by a party; and (h) an interim injunction or any other interim measures.
(2) If a party to apply to the High Court to seek any interim steps and an arbitration tribunal has made a decision on any matter related to the application, the High Court shall presume any findings of fact made in the course of that decision by the arbitration tribunal to be conclusive for the purposes of the application.
Arbitration 15 Chapter 3 membership of arbitrators the arbitrator Number 12. (1) the parties are free to determine the number of arbitrators.
(2) if the parties fail to determine the number of arbitrators, the arbitration tribunal shall — (a) in the case of an arbitration international, consisting of three arbitrators; and (b) in the case of a domestic arbitration, consist of a single arbitrator.
Appointment of arbitrator 13. (1) unless agreed otherwise by the parties, no person shall be prevented from acting as an arbitrator for reasons of nationality.
(2) the parties are free to agree on the procedure to appoint the arbitrator or arbitrators Chairman.
(3) if the parties fail to agree on the procedures referred to in subsection (2), and arbitration is consisting of three arbitrators, each Party shall appoint one arbitrator, and the two arbitrators so appointed shall appoint a third arbitrator as an arbitrator of the Chairman.
(4) If subsection (3) applies and — (a) a party fails to appoint an arbitrator within thirty days of receipt of the request in writing to do so from the other party; or (b) the arbitrators fail to agree on the third arbitrator within thirty days of their appointment or such extended period as may be agreed by the parties, 16 laws of Malaysia ACT 646 any one party may apply to the Director of the Regional Centre for arbitration Kuala Lumpur for the appointment.
(5) where in an arbitration with a sole arbitrator — (a) the parties fail to agree on the procedures referred to in subsection (2); and (b) the parties fail to agree on the arbitrator, either party may apply to the Director of the Regional Centre for arbitration Kuala Lumpur for the appointment of an arbitrator.
(6) If, the parties have agreed on the procedure for the appointment of an arbitrator — (a) a party fails to act as required under the procedure;
(b) the parties, or two arbitrators, are unable to reach an agreement under the procedure; or (c) a third party, including an institution, fails to perform any of the functions entrusted to it under the procedure, any party may request the Director of the Regional Centre for arbitration Kuala Lumpur to take such steps as are necessary, unless agreement on the procedure of appointment provide for other ways to get the appointment.
(7) if the Director of the Regional Centre for arbitration Kuala Lumpur could not act or fail to act under subsection (4), (5) and (6) within thirty days of the request, any party may apply to the High Court for the appointment.
(8) The appoint one arbitrator Director Regional Centre for arbitration Kuala Lumpur or the High Court, as the case may be, shall give proper attention to — (a) any qualifications required of the arbitrator by the agreement of the parties;
Arbitration 17 (b) other considerations that may ensure the appointment of an arbitrator that is free and fair; and (c) in the case of an international arbitration, wisdom to appoint one arbitrator who is stateless in addition to nationality of the parties.
(9) no appeal may be taken against any decision of the Director of the Regional Centre for arbitration Kuala Lumpur or the High Court under this section.
Reason for challenging 14. (1) a person approached in connection with the possibility of the person appointed as an arbitrator shall disclose any circumstances likely to give rise to doubts which may be warranted in respect of equality or freedom of the person.
(2) An arbitrator shall, without unnecessary delay, from the time of appointment and during the arbitration proceedings, disclose any of the circumstances referred to in subsection (1) to the parties unless the parties that have been told about the circumstances by the arbitrator.
(3) An arbitrator may be challenged only if — (a) the circumstances giving rise to doubts which can be warranted about equality or independence of the arbitrators; or (b) the arbitrator does not possess qualifications agreed to by the parties.
(4) a party may challenge the arbitrator a person appointed by the parties, or parties that participated, only for reasons of which the party was discovered after the appointment is made.
Challenging procedures 15. (1) unless agreed otherwise by the parties, any party intending to challenge someone 18 laws of Malaysia ACT 646

the arbitrator shall, within fifteen days after becoming aware of the establishment of the arbitration tribunal or of any of the reasons referred to in subsection 14 (3), send a written statement to the arbitration tribunal of the reasons.
(2) unless the challenged arbitrator withdraws from his Office or the other party agrees with the challenge, the arbitration tribunal shall decide on the challenge.
(3) If a challenge is not successful, the challenging party may, within thirty days after receiving notice of the decision rejecting the challenge, to apply to the High Court to decide on the challenge.
(4) While the application is pending, the arbitration tribunal, including the challenged arbitrator, may continue the arbitration proceedings and make an award.
(5) no appeal may be made against the decision of the High Court under subsection (3).
Failure or impossibility to Act 16. (1) If an arbitrator becomes not capable in law or in fact to exercise the functions of the post, or for other reasons fails to act without undue delay, the arbitrator's mandate ends with the withdrawal from Office or if the parties agree to the termination.
(2) if any party does not agree with the termination of the mandate of the arbitrator, any party may apply to the High Court to decide such termination and no appeal can be made against the decision of the High Court.
Arbitration 19 (3) If, under this section or subsection 15 (2), an arbitrator withdraws from Office or a party agrees to the termination of the mandate of an arbitrator, then the person shall not be implied acceptance of the validity of any ground referred to in this section or subsection 14 (3).
Appointment of arbitrator replace 17. (1) a replacement arbitrator shall be appointed in accordance with the provisions of this Act if — (a) mandate someone arbitrator expires under section 15 or 16;
(b) an arbitrator withdraws from Office by any other reason;
(c) the arbitrator's mandate is cancelled with the agreement of the parties; or (d) in any case the termination of the mandate of the other.
(2) unless otherwise agreed by the parties — (a) If a sole arbitrator or arbitrators Chairman replaced, any hearings held previously shall be repeated in front of arbitrator replace; or (b) If an arbitrator other than a sole arbitrator or arbitrators Chairman replaced, any hearings held previously can be repeated at the discretion of the arbitration tribunal.
(3) unless otherwise agreed by the parties, any order or decision of the arbitration tribunal made prior to the replacement of an arbitrator under this section shall not be invalid merely on the ground there is a change in the composition of the arbitration tribunal.
Chapter 4 jurisdiction of the arbitration tribunal arbitration tribunal Integrity to make a decision on jurisdiction 18. (1) the Arbitration Tribunal can decide on its own jurisdiction, including any objections with regard to the existence or validity of the arbitration agreement.
20 laws of Malaysia ACT 646 (2) for the purposes of subsection (1) — (a) an arbitration clause which forms part of an agreement shall be treated as an agreement independent of the other terms of the agreement; and (b) a decision by the arbitration tribunal that the agreement was null and void ipso jure the invalidity shall not render the arbitration clause.
(3) a pli arbitration tribunal that it does not have jurisdiction shall be raised not later than the submission of statement of defence.
(4) a party is not prevented from raise pli under subsection (3) by virtue of the party have been appointed or participated in the appointment of an arbitrator.
(5) a pli that arbitration tribunal exceeded the scope of his authority shall be raised as soon as the matter alleged exceeding the scope of its powers is raised during the arbitration proceedings.
(6) Notwithstanding subsection (3) and (5), arbitration tribunal can admit that if pli arbitration tribunal is of the view that the delay justified.
(7) the Arbitration Tribunal can decide on pli referred to in subsection (3) or (5), either as a preliminary question or in an award in accordance with merit.
(8) if the arbitration tribunal decided on the pli as a preliminary question that it has jurisdiction, any party may, within thirty days after receiving notice of the decision was appealed to the High Court to decide the matter.
(9) while the appeal is pending, the arbitration tribunal may proceed with the arbitration proceedings and make an award.
(10) no appeal may be made against the decision of the High Court under subsection (8).
Arbitration tribunal arbitration Powers 21 to order interim measures 19. (1) unless agreed otherwise by the parties, a party may apply to the tribunal for arbitration in respect of any of the following order: (a) guarantee costs;
(b) the disclosure of documents and interogatori;
(c) the giving of evidence through the affidavit;
(d) interim care, custody or sale of any property on which a matter of dispute.
(2) the Arbitration Tribunal may require any party to provide appropriate security in connection with such steps as may be ordered under subsection (1).
(3) unless otherwise agreed by the parties, sections 38 and 39 shall apply to an order made by a tribunal for arbitration under this section as if the reference in that section to a award is a reference to such an order.
Chapter 5 the conduct of arbitration proceedings Service equal parties 20. The Parties shall be treated equally and each Party shall be given an opportunity for a fair and reasonable to raise the case of the party.
22 laws of Malaysia ACT 646 Determination procedure 21. (1) subject to the provisions of this Act, the parties are free to agree on the procedure to be followed by the arbitration tribunal in conducting the proceedings.
(2) if the parties fail to agree under subsection (1), the arbitration tribunal may, subject to the provisions of this Act, conduct the arbitration in such manner as he thinks fit.
(3) the powers conferred to the arbitration tribunal under subsection (2) shall include power to — (a) determine the admissibility, relevance, importance and seriousness of any evidence;
(b) using her skills and knowledge itself; (c) order the procurement provisions of the details in the statement of claim or statement of defence; (d) order the granting of the guarantee costs; (e) fix and amend the time limit in which the various steps in the proceedings for arbitration must be completed;
(f) order the disclosure and production of documents or material in the possession or power of a party;
(g) order the interogatori to be answered; (h) order that any evidence given on oath or affirmation; and (i) make any other order as may be deemed appropriate by the arbitration tribunal.
Place of arbitration 22. (1) the parties are free to agree on the place of arbitration.
(2) if the parties fail to agree under subsection (1), the place of arbitration shall be determined by the arbitration tribunal, taking into consideration the circumstances of the case, including the convenience of the parties.
Arbitration 23 (3) Notwithstanding subsection (1) and (2), the arbitration tribunal may, unless otherwise agreed by the parties, meet at any place it deems appropriate for the meeting among its members, for hearing witnesses, experts or the parties, or to examine the goods, property or other documents.
Commencement of arbitration proceedings 23. Unless agreed otherwise by the parties, the arbitration proceedings in respect of a particular dispute commence on the date that should a request in writing so that the dispute referred to arbitration is received by the respondent.
24 languages. (1) the parties are free to agree on the language to be used in the arbitration proceedings.
(2) if the parties fail to agree under subsection (1), the arbitration tribunal shall determine the language that should be used in the arbitration proceedings.
(3) an agreement or determination of each referred to in subsection (1) and (2) shall, unless specified otherwise in the agreement or determination that, apply to any written statement made by a party, any hearing and any award, decision or other communication by the arbitration tribunal.
(4) the Arbitration Tribunal may order any evidence dokumentar shall be accompanied with translation into a language agreed upon by the parties or determined by the arbitration tribunal.
Statements of claim and defence 25. (1) within the period of time agreed by the parties or, in the absence of such agreement, as shall be determined by the arbitration tribunal, the claimant shall state — (a) the facts supporting the claim; (b) matters an issue; and (c) the relief or remedy requested, 24 laws of Malaysia ACT 646 and the respondent shall state his defence in respect of the particulars set out in this subsection, unless the parties have agreed otherwise to the elements required in the statement.

(2) the parties may — (a) submit together with their statements any document deemed relevant by the parties; or (b) add a reference to the documents or other evidence submitted by the parties.
(3) unless otherwise agreed by the parties, either party may amend or add to the claim or defense in the course of the arbitration proceedings, unless the arbitration tribunal thinks is inappropriate to allow such amendment having regard to the delay in making it.
Hearing 26. (1) unless agreed otherwise by the parties, the arbitration tribunal shall decide whether to hold an oral hearing for the presentation of evidence or oral submissions, or whether the proceedings shall be conducted on the basis of documents and other material.
(2) unless the parties have agreed that no hearing can be held, the arbitration tribunal shall be upon the application of any party held a hearing oral at a suitable stage in the proceedings.
(3) the Parties shall be given reasonable notice in advance of any hearing and of any meeting of the arbitration tribunal for the purposes of inspection of goods, other property or documents.
(4) all statements, documents or other information supplied to the arbitration tribunal by one party shall be communicated to the other party.
(5) any expert report or document evidence the arbitration tribunal may rely on it in making its decision shall be communicated to the parties.
Arbitration 25 default of a party 27. Unless agreed otherwise by the parties, if, without showing sufficient cause — (a) the claimant fails to convey the assertion of claims in accordance with subsection 25 (1), the arbitration tribunal shall terminate the proceedings;
(b) respondent failed to deliver the statement of defence in accordance with subsection 25 (1), the arbitration tribunal shall continue the proceedings without assuming that failure in itself as an admission of the claimant's allegations;
(c) any party fails to appear at a hearing or produce evidence dokumentar, arbitration tribunal may continue the proceedings and make the award on the basis of the evidence before it; or (d) the claimant failed to pursue a claim, the arbitration tribunal may make an award shall disclaim or give directions, with or without conditions, for the purpose of determining the claim quickly.
Experts appointed by the arbitration tribunal 28. (1) unless agreed otherwise by the parties, the arbitration tribunal may — (a) appoint one or more experts to report to it on specific issues to be determined by the arbitration tribunal; or (b) require a party to provide to the expert any relevant information or to produce, or to provide access to any documents, goods or other property related to the expert examination.
(2) unless otherwise agreed by the parties, if a party applying or if arbitration tribunal considers necessary, the expert shall, after delivery of a report 26 laws of Malaysia ACT 646 written or verbal, participated in the hearing that the parties have the opportunity to put questions to the experts and to present expert witnesses to give evidence other matters an issue.
Court assistance in taking evidence 29. (1) any party may with the approval of the arbitration tribunal, seeking help from the High Court in taking evidence.
(2) the High Court may order the attendance of a witness to give evidence or, if applicable, submit the oath or affirmation before a high court officer or any other person, including the arbitration tribunal.
Chapter 6 Make award or termination of legal proceedings applicable to content disputes 30. (1) in respect of a domestic arbitration if the place of arbitration is in Malaysia, the arbitration tribunal shall decide the dispute in accordance with the substantive laws of Malaysia.
(2) in respect of an international arbitration, arbitration tribunal shall decide the dispute in accordance with the law agreed by the parties as applicable to the content of the dispute.
(3) any designation by the parties of the law of a particular country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of law rules.
(4) in the absence of any agreement under subsection (2), the arbitration tribunal shall apply the law determined by the rules of conflict of law.
Arbitration 27 (5) the Arbitration Tribunal shall, in all cases, decided in accordance with the terms of the agreement and shall take into account the use of the trade applicable to the transaction.
Decisions made by the panel of arbitrators 31. (1) unless agreed otherwise by the parties, the arbitration proceedings that there is more than one arbitrator, any decision of the arbitration tribunal shall be made by a majority of all its members.
(2) if such is permitted by the parties or all members of the arbitration tribunal, the question of procedure may be decided by the arbitrator of the Chairman.
32 solutions. (1) If, during the arbitration proceedings, the parties settle the dispute, the arbitration tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitration tribunal, record the settlement in the form of an award on agreed terms.
(2) an award in accordance with the terms agreed upon shall be made in accordance with the provisions of section 33 and shall state that it is an award.
(3) an award made under subsection (1) shall have the same status and effect as an award according to the merits of the case.
Form and contents of award 33. (1) an award shall be in writing and subject to subsection (2) shall be signed by the arbitrator.
(2) in arbitration proceedings that there is more than one arbitrator, the signatures of the majority of all the members of the arbitration tribunal shall be sufficient provided that the reasons for any omission of the signature specified.
28 laws of Malaysia ACT 646 (3) an award shall state the reason for the award is based, unless — (a) the parties have agreed that there is no reason to be given; or (b) the award is an award in accordance with the terms agreed under section 32.
(4) an award shall state the date and place of arbitration as determined in accordance with section 22 and shall be deemed to have been made at that place.
(5) after an award is made, a copy of the award signed by the arbitrators in accordance with subsection (1) and (2) shall be delivered to each party.
(6) unless otherwise provided in the arbitration agreement, the arbitration tribunal may — (a) to award interest on any sums commanded to paid by an award from the date of the award and the date of settlement; and (b) determine the interest rates.
Termination of proceedings 34. (1) arbitration proceedings shall be terminated by a final award or by an order of the arbitration tribunal in accordance with subsection (2).
(2) the Arbitration Tribunal shall order the termination of the arbitration proceedings if — (a) the claimant withdraws the claim, unless the respondent opposes the withdrawal of the arbitration tribunal and recognises the importance of valid the respondent in acquiring a final dispute resolution;
(b) the parties agree to the termination of the proceedings; or (c) the arbitration tribunal found that continuation of the proceedings for any other reason have become unnecessary or impossible.
Arbitration 29 (3) subject to the provisions of section 35 and subsection 37 (6), the mandate of the arbitration tribunal shall expire with the termination of the arbitration proceedings.
(4) unless otherwise provided for by any law, the death of a party shall not terminate — (a) arbitration proceedings; or (b) the power of the arbitration tribunal.
Correction and interpretation of award or award additional 35. (1) a party, within thirty days from the receipt of the award, unless any other time period agreed by the parties — (a) by notice to the other party, may request the arbitration tribunal to correct in the award any errors of computation, any clerical error or error of a keystroke, or other similar error; or (b) by notice to and with the consent of the other party, may request the arbitration tribunal to give an interpretation of a certain article or part of the award.
(2) if the arbitration tribunal of the opinion request made under subsection (1) as groundless, the arbitration tribunal shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the award.
(3) the Arbitration Tribunal may correct any error of the type referred to in paragraph (1) (a) on its own initiatives within thirty days from the date of the award.

(4) unless otherwise agreed by the parties, a party may, within thirty days from the receipt of the award and with notice to the other party, request the tribunal arbitration make an additional award as to claims presented in the arbitration proceedings but was left out of the award.
30 laws of Malaysia ACT 646 (5) if the arbitration tribunal considers a request under subsection (4) as groundless, the arbitration tribunal shall make the additional award within sixty days from receipt of the request.
(6) the Arbitration Tribunal may, if it thinks fit, extend the time in which it shall make a correction, interpretation or an additional award under this section.
(7) the provisions of section 33 shall apply to a correction or interpretation of the award or to an additional award.
The award shall be final and binding on the 36. (1) an award made by the arbitration tribunal pursuant to an agreement the arbitration shall be final and binding on the parties and any party can rely on it as a defence, set-off or otherwise in any proceedings in any court.
(2) the Arbitration Tribunal cannot vary, amend, correct, review, add to or cancel the award has been made except as specifically provided in section 35.
Chapter 7 action against award Application for waive 37. (1) an award may be set aside by the High Court only if — (a) the person making the application provide evidence that — (i) a party to the arbitration agreement was not capable;
(ii) the arbitration agreement is invalid under the applicable law the parties subject to it, or, Arbitration 31 if there is nothing that shows about the law that, under the laws of Malaysia;
(iii) the person making the application was not given proper notice of appointment of an arbitrator or of the arbitration proceedings or otherwise unable to submit the party's case;
(iv) the award deals with a dispute not expected by or not included in the terms of the submission to arbitration;
(v) subject to subsection (3), the award contains decisions on matters beyond the scope of the submission to arbitration; or (vi) the composition of the arbitration tribunal or the arbitration procedure does not comply with the agreement of the parties, unless the agreement is in conflict with a provision of this Act which the parties cannot not menurutinya, or, if there is no agreement that, does not comply with this Act; or (b) the High Court found that — (i) the matter of the dispute cannot be settled through arbitration under the laws of Malaysia; or (ii) the award is in conflict with the public policy of Malaysia.
(2) without limiting the generality of subparagraph (1) (b) (ii), an award is in conflict with public policy Malaysia if — (a) the making of an award that has been driven or affected by fraud or corruption; or (b) a breach of the tenets of fundamental justice occurs — (i) during the arbitration proceedings; or (ii) in relation to the making of the award.
32 laws of Malaysia ACT 646 (3) if the decisions on matters submitted to arbitration can be separated from the things which are not presented, only part of the award which contains decisions on matters not submitted to arbitration may be set aside.
(4) an application for setting aside may not be made after the expiry of ninety days from the date that the person making the application received the award or, if a request has been made under section 35, from the date at which the request has been resolved by the arbitration tribunal.
(5) subsection (4) shall not apply to an application for setting aside on the ground that the award has been driven or affected by fraud or corruption.
(6) On an application under subsection (1) the High Court may, if appropriate and so requested by a party, adjourn the proceedings for such period of time as may be determined by it to provide arbitration tribunal an opportunity to resume arbitration proceedings or to take such other steps as may in the opinion of the arbitration tribunal will eliminate the grounds for setting aside.
(7) If an application is made to set aside an award, the High Court may order that any money made payable by the award shall be brought in the High Court or otherwise guaranteed while the determination of the application is complete.
Chapter 8 the recognition and enforcement of the award Recognition and enforcement 38. (1) Upon an application in writing to the High Court, an award made in respect of domestic arbitration or an award from a foreign country, shall be subject to this section and section 39 are recognised as binding and enforceable through the entry as a judgment by the terms of the award or by action.
Arbitration 33 (2) in an application under subsection (1) the applicant shall submit: (a) the original award that confirmed the successful completion of a certified copy of the award or the successful completion; and (b) the original arbitration agreement or a certified copy of the agreement with the successful completion.
(3) where an award or arbitration agreement are in languages other than the national language or in English, the applicant shall provide the translation of the agreement or award in English certified successfully.
(4) for the purposes of this Act, "foreign country" means a Country which is a party to the Convention on the recognition and enforcement of Foreign Arbitration Award that was adopted by the United Nations Conference On International Commercial Arbitration in 1958.
Reason to refuse recognition or enforcement 39. (1) recognition or enforcement of an award, no matter in which country it is made, may be refused only on request of the party against whom it is to be used — (a) if the party giving evidence to the High Court that — (i) a party to the arbitration agreement was not capable;
(ii) the arbitration agreement is invalid under the applicable law the parties subject to it, or, if there is nothing showing on the law that, under the laws of Malaysia;
(iii) the person making the application was not given proper notice of appointment of an arbitrator or of the arbitration proceedings or otherwise unable to submit the party's case;
34 the laws of Malaysia ACT 646 (iv) the award deals with a dispute not expected by or not included in the terms of the submission to arbitration;
(v) subject to subsection (2), the award contains decisions on matters beyond the scope of the submission to arbitration;
(vi) the composition of the arbitration tribunal or the arbitration procedure does not comply with the agreement of the parties, unless the agreement is in conflict with a provision of this Act which the parties cannot not menurutinya, or, if no such agreement, does not comply with this Act; or (vii) the award has not yet binding on the parties or has been set aside or suspended by a court in the country, or under applicable law, the award is made; or (b) if the High Court finds that — (i) the matter of the dispute cannot be settled through arbitration under the laws of Malaysia; or (ii) the award is in conflict with the public policy of Malaysia.
(2) If an application for setting aside or suspension of an award has been made to the High Court on the ground referred to in subparagraph (1) (a) (vii), the High Court may, if it thinks fit, adjourn its decision and may also, on the application of the recognition or enforcement of a claim for the award, order the other party to provide appropriate.
PART III ADDITIONAL PROVISIONS RELATING to ARBITRATION proceedings and hearing with the consolidation of 40. (1) the parties may agree — (a) that the arbitration proceedings shall be consolidated with any other arbitration proceedings; or Arbitration 35 (b) that a joint hearing shall be held, in accordance with such terms as may be agreed.
(2) unless the parties agree to give such power to the arbitration tribunal, the tribunal does not have the authority to order consolidation of arbitration proceedings or hearing together.
Determination of initial legal matters by the Court 41. (1) any party may apply to the High Court to determine any question of law arising during travel arbitration — (a) with the consent of the arbitration tribunal; or (b) with the consent of all other parties.
(2) the High Court may not consider an application under subsection (1) unless it is satisfied that the determination of — (a) is likely to produce substantial cost savings; and (b) substantially prejudice a party or more.
(3) the application shall identify the question of law which shall be determined and, unless made with the consent of all parties to the proceedings, shall state the reasons in support of the application.
(4) upon an application under subsection (1) pending arbitration, the proceedings may be continued and the award can be made.
Reference of question of law 42. (1) any party may refer to the High Court any question of law arising out of an award.
36 laws of Malaysia ACT 646

(2) a reference should be filed within forty-two days from the publication and acceptance of the award, and shall identify the question of law which shall be determined and stating the reason the references requested.
(3) the High Court may order arbitration tribunal to state the reasons for the award in awardnya if — (a) does not contain reasons for the arbitration tribunal; or (b) not state the reasons for the arbitration tribunal with sufficient details.
(4) the High Court may, in determining a reference — (a) confirm the award;
(b) vary the award;
(c) the meremit award in whole or in part, along with the determination of the High Court on the question of law to arbitration tribunal for reconsideration;
(d) set aside the award in whole or in part.
(5) if the award is modified by the High Court, the variation shall have effect as part of the award of the arbitration tribunal.
(6) if the award is diremit in whole or in part for reconsideration, the arbitration tribunal shall make an award in respect of new matters diremit within ninety days from the date of order for remission or such other period as may be directed by the High Court.
(7) if the High Court makes an order under subsection (3), it may make such further order as it thinks fit of any additional costs of arbitration as a consequence of the order.
(8) Upon a reference under subsection (1) the High Court may — (a) order the applicant to provide assurance of cost; or Arbitration 37 (b) order that any money payable under such an award shall be brought in the High Court or otherwise be obtained while the determination of reference is completed.
Appeal is 43. A decision of the High Court under section 42 shall be deemed to be a judgment of the High Court within the meaning of section 67 of Judicature Act 1964 [Act 91].
Arbitration costs and expenses 44. (1) unless agreed otherwise by the parties — (a) the arbitration costs and expenses shall be at the discretion of the arbitration tribunal that can be — (i) direct to whom and by whom and by what means the cost or any part thereof shall be paid;
(ii) set or settle the amount of the costs or expenses; and (iii) award costs or expenses that must be paid as between solicitor with the client;
(b) any party may apply to the High Court for the cost of the set if the arbitration tribunal in the awardnya direct that the costs and expenses payable by any party but not stating the amount of such costs and expenses within thirty days after being requested to do so; or (c) each Party shall be responsible for the expenses of its own lawmakers and other expenses and equal share of the fees and expenses of the arbitration tribunal and any other expenses relating to the arbitration award or award in the absence of the extra sets and assign the arbitration costs and expenses.
38 the laws of Malaysia ACT 646 (2) unless otherwise agreed by the parties, if a party makes an offer to the other party to resolve the dispute or part of the dispute and the offer is not accepted and award the arbitration tribunal is not better to the other party of what is offered that, arbitration tribunal, in setting and assign the arbitration costs and expenses , can take into account the fact the offer in award costs and expenses in respect of the period from the making of the offer to the making of the award.
(3) Offer for solutions made under subsection (2) shall not be notified to the arbitration tribunal until it has made a final determination of all aspects of the dispute in addition to setting and the earmarking of costs and expenses.
(4) if the arbitration tribunal refuses to deliver awardnya before the payment of the fees and the furtherance, the High Court may order that the arbitration tribunal to present the award in accordance with the terms and conditions as it deems fit by the High Court.
(5) a determination of the costs, fees and expenses under this section may be reviewed by the same way as the determination of costs.
Extension of time to commence arbitration proceedings 45. Where an arbitration agreement provides that the arbitration proceedings shall be commenced within the time specified in the agreement, the High Court may, notwithstanding the time that has expired, extend the time for such period and on such terms as it thinks fit, if the High Court held that in the circumstances of the case would otherwise cause undue hardship.
Extension of time for making award 46. (1) if the time for making the award is limited by the arbitration agreement, the High Court may, unless the parties agree otherwise, extend the time.
Arbitration 39 (2) an application under subsection (1) may be made — (a) by notice to the parties, by the arbitration tribunal; or (b) by notice to the arbitration tribunal and the other parties, by any party to the proceedings.
(3) the High Court shall not make an order unless — (a) all arbitration tribunal process that is possible to get and extending time was used; and (b) the High Court is satisfied that substantial injustice will otherwise occur.
(4) the High Court may exercise its powers under subsection (1) Notwithstanding the time set previously by or under the arbitration agreement or by a previous order has expired.
PART IV MISCELLANEOUS Liabilities arbitration 47. Someone an arbitrator is not liable for any act or omission in respect of anything done or omitted in the performance of its functions as an arbitrator unless shown Act or the omission is malicious.
Arbitration institutions immunity 48. (1) the Director of the Regional Centre for arbitration Kuala Lumpur or any other person or institution prescribed or requested by the parties to appoint or nominate one arbitrator, shall not be liable for anything done or omitted is not performed at the discharging its functions unless the Act or omission shown was malicious.
40 laws of Malaysia ACT Bankruptcy 49 646. (1) If a party to the arbitration agreement was a bankrupt and a person who has authority to administer the bankrupt property adopted the agreement, the arbitration agreement shall be enforceable by or against that person.
(2) the High Court may direct any matter related to or for the purpose of bankruptcy proceedings referred to arbitration if — (a) the matter is for which arbitration agreement applies;
(b) the arbitration agreement made by the person who has been sentenced to the bankrupt prior to the commencement of the bankruptcy proceedings; and (c) a person who has authority to administer the property of not adopting the agreement.
(3) an application under subsection (2) may be made by — (a) any party to the arbitration agreement; or (b) any person having authority to administer the property of the bankrupt.
Way of application 50. Any application to the High Court under this Act shall be through the suit beginners as provided in the rules of the High Court 1980 [p.u.(a) 50/1980].
Repeal and saving 51. (1) the Arbitration Act 1952 [Act 93] and the Convention on the recognition and enforcement of Foreign Arbitration Award 1985 [Act 320] is repealed.
Arbitration 41 (2) if the arbitration agreement made or arbitration proceedings instituted before the commencement of this Act, the law governing the arbitration agreement and the arbitration proceedings it is the law that should have been used instead as-by this Act is not made.
(3) no nothing in this Act affects any proceedings relating to the arbitration has commenced in any court before the commencement of this Act.
42 laws of Malaysia ACT 646 laws of MALAYSIA Act 646 ARBITRATION ACT 2005 LIST AMENDMENT law short title force amend from – no – Arbitration 43 laws of MALAYSIA Act 646 ARBITRATION ACT 2005 AMENDED SECTION LIST Section Power amend with effect from – THERE are –