Arbitration clause in agreements

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Drafting

For anyone looking to include arbitration clause in agreements for arbitration in Malaysia, you may want to consider adopting the following model arbitration clause under the AIAC Arbitration Rules 2021:

โ€œ๐˜ˆ๐˜ฏ๐˜บ ๐˜ฅ๐˜ช๐˜ด๐˜ฑ๐˜ถ๐˜ต๐˜ฆ, ๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ฐ๐˜ท๐˜ฆ๐˜ณ๐˜ด๐˜บ, ๐˜ฅ๐˜ช๐˜ง๐˜ง๐˜ฆ๐˜ณ๐˜ฆ๐˜ฏ๐˜ค๐˜ฆ ๐˜ฐ๐˜ณ ๐˜ค๐˜ญ๐˜ข๐˜ช๐˜ฎ ๐˜ข๐˜ณ๐˜ช๐˜ด๐˜ช๐˜ฏ๐˜จ ๐˜ฐ๐˜ถ๐˜ต ๐˜ฐ๐˜ง ๐˜ฐ๐˜ณ ๐˜ณ๐˜ฆ๐˜ญ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฐ ๐˜ต๐˜ฉ๐˜ช๐˜ด ๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ต, ๐˜ช๐˜ฏ๐˜ค๐˜ญ๐˜ถ๐˜ฅ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฑ๐˜ฆ๐˜ณ๐˜ง๐˜ฐ๐˜ณ๐˜ฎ๐˜ข๐˜ฏ๐˜ค๐˜ฆ, ๐˜ฃ๐˜ณ๐˜ฆ๐˜ข๐˜ค๐˜ฉ, ๐˜ต๐˜ฆ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ณ ๐˜ช๐˜ฏ๐˜ท๐˜ข๐˜ญ๐˜ช๐˜ฅ๐˜ช๐˜ต๐˜บ ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ๐˜ฆ๐˜ฐ๐˜ง, ๐˜ข๐˜ด ๐˜ธ๐˜ฆ๐˜ญ๐˜ญ ๐˜ข๐˜ด ๐˜ข๐˜ฏ๐˜บ ๐˜ฏ๐˜ฐ๐˜ฏ-๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ต๐˜ถ๐˜ข๐˜ญ ๐˜ค๐˜ญ๐˜ข๐˜ช๐˜ฎ๐˜ด, ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ ๐˜ง๐˜ช๐˜ฏ๐˜ข๐˜ญ๐˜ญ๐˜บ ๐˜ฅ๐˜ฆ๐˜ต๐˜ฆ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜ฆ๐˜ฅ ๐˜ฃ๐˜บ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ, ๐˜ข๐˜ฅ๐˜ฎ๐˜ช๐˜ฏ๐˜ช๐˜ด๐˜ต๐˜ฆ๐˜ณ๐˜ฆ๐˜ฅ ๐˜ฃ๐˜บ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ˆ๐˜๐˜ˆ๐˜Š, ๐˜ช๐˜ฏ ๐˜ข๐˜ค๐˜ค๐˜ฐ๐˜ณ๐˜ฅ๐˜ข๐˜ฏ๐˜ค๐˜ฆ ๐˜ธ๐˜ช๐˜ต๐˜ฉ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ˆ๐˜๐˜ˆ๐˜Š ๐˜ˆ๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜™๐˜ถ๐˜ญ๐˜ฆ๐˜ด ๐˜ช๐˜ฏ ๐˜ง๐˜ฐ๐˜ณ๐˜ค๐˜ฆ ๐˜ข๐˜ต ๐˜ต๐˜ฉ๐˜ฆ ๐˜ต๐˜ช๐˜ฎ๐˜ฆ ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ค๐˜ฐ๐˜ฎ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ค๐˜ฆ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ.โ€

The AIAC Arbitration Rules 2021 also recommend including the following clauses:

-๐˜›๐˜ฉ๐˜ฆ ๐˜ด๐˜ฆ๐˜ข๐˜ต ๐˜ฐ๐˜ง ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ [๐˜Š๐˜ช๐˜ต๐˜บ, ๐˜Š๐˜ฐ๐˜ถ๐˜ฏ๐˜ต๐˜ณ๐˜บ].
-๐˜›๐˜ฉ๐˜ฆ ๐˜ฏ๐˜ถ๐˜ฎ๐˜ฃ๐˜ฆ๐˜ณ ๐˜ฐ๐˜ง ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ฐ๐˜ณ๐˜ด ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ [ ].
-๐˜›๐˜ฉ๐˜ฆ ๐˜ญ๐˜ข๐˜ฏ๐˜จ๐˜ถ๐˜ข๐˜จ๐˜ฆ ๐˜ต๐˜ฐ ๐˜ฃ๐˜ฆ ๐˜ถ๐˜ด๐˜ฆ๐˜ฅ ๐˜ช๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ญ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ช๐˜ฏ๐˜จ๐˜ด ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ [ ].
-๐˜›๐˜ฉ๐˜ฆ ๐˜ญ๐˜ข๐˜ธ ๐˜จ๐˜ฐ๐˜ท๐˜ฆ๐˜ณ๐˜ฏ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ค๐˜ญ๐˜ข๐˜ถ๐˜ด๐˜ฆ ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ [ ].

Where the parties agree to expeditedย conduct of arbitral proceedings, theย AIAC Arbitration Rules 2021 provide thatย the parties may consider including the following additional clause:

โ€œ๐˜›๐˜ฉ๐˜ฆ ๐˜—๐˜ข๐˜ณ๐˜ต๐˜ช๐˜ฆ๐˜ด ๐˜ข๐˜จ๐˜ณ๐˜ฆ๐˜ฆ ๐˜ต๐˜ฐ ๐˜ฉ๐˜ข๐˜ท๐˜ฆ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ค๐˜ฐ๐˜ฏ๐˜ฅ๐˜ถ๐˜ค๐˜ต๐˜ฆ๐˜ฅ ๐˜ช๐˜ฏ ๐˜ข๐˜ค๐˜ค๐˜ฐ๐˜ณ๐˜ฅ๐˜ข๐˜ฏ๐˜ค๐˜ฆ ๐˜ธ๐˜ช๐˜ต๐˜ฉ ๐˜ต๐˜ฉ๐˜ฆ ๐˜๐˜ข๐˜ด๐˜ต ๐˜›๐˜ณ๐˜ข๐˜ค๐˜ฌ ๐˜—๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฅ๐˜ถ๐˜ณ๐˜ฆ ๐˜ด๐˜ฆ๐˜ต ๐˜ฐ๐˜ถ๐˜ต ๐˜ช๐˜ฏ ๐˜™๐˜ถ๐˜ญ๐˜ฆ 8 ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ˆ๐˜๐˜ˆ๐˜Š ๐˜ˆ๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜™๐˜ถ๐˜ญ๐˜ฆ๐˜ด.โ€

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This post was first posted on Linkedin on 6 August 2021.

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