Datuk Prof. Sundra Rajoo
Director
Kuala Lumpur Regional Centre for Arbitration (KLRCA)

A: Kuala Lumpur Regional
Centre for Arbitration,
Bangunan Sulaiman,
Jalan Sultan Hishamuddin,
50000 Kuala Lumpur,
Malaysia
T: (603) 2271 1000
E: enquiry@klrca.org
W: klrca.org

What were the main objectives that the KLRCA was set out to achieve?
The KLRCA was established in 1978 by the Asian-African Legal Consultative Organization (AALCO) with the objective of becoming the regional arbitration center of choice for South East Asia in general, and Malaysia specifically. As such, the KLRCA was tasked with the duties of administering arbitration proceedings, both domestic and international in character, along with many other tasks relating to the dissemination of knowledge on alternative dispute resolution (ADR) and arbitration, promoting the use of ADRs domestically and internationally, and the training in arbitration of legal practitioners, judges, and other stakeholders, amongst others. The most important function of the KLRCA, and which forms its core function today, is however, the administration of arbitration proceedings. To this end, the KLRCA has its own set of procedural rules, called the KLRCA Arbitration Rules, the latest version of which debuted in October 2013. The KLRCA Arbitration Rules, as a whole, govern the conduct of the entire arbitration proceedings, from commencement to termination, whether by way of delivery of a final award from the Arbitral Tribunal or otherwise. What are some examples of projects that the center is involved in? KLRCA is heavily involved in the development and expansion of arbitration and other ADR methods locally in Malaysia, regionally in Asia, and globally. Since its establishment, it has expanded its ADR functionalities much beyond traditional arbitration administration, and now is actively involved in other forms of ADR, such as, mediation, adjudication and domain name dispute resolution. The KLRCA disseminates information and intelligence about the benefits ADR can offer to future litigants. Its primary focus is to be the regional think tank in the field of ADR and as such, it regularly advises and holds consultations with the relevant government ministries, practitioners, students, and other stakeholders. Some of the areas in which the KLRCA is making huge strides include maritime arbitration, arbitration of sporting disputes; domain name dispute resolution, and medicolegal mediation. Our target clients include government agencies, government linked companies (GLCs), and companies from the private sector. Anyone who is entering into a contract, we would advise them to incorporate the recommended model clause into the said contract.

How will the center increase its international recognition?
There was international recognition when our i-Arbitration Rules won the Global Arbitration Review (GAR) Award for “Innovation by an Individual or Organization in 2012” at the 3rd annual GAR Awards in Bogotá, Columbia. KLRCA has pushed on since then. When an opportunity presents itself, the center is prepared to put in the hard work required to make its mark on the international front. In addition to accepting invites to speak at large scaled ADR conferences around the world, amongst the many being Moscow, Beijing, Paris, London, Casablanca, The Middle East, and The Caribbean; the center is also in the process of translating its rules into various additional languages to cater to its international audience. Organizing international arbitration conferences are also a great way to increase international recognition. In 2014, we organized the inaugural Kuching International Arbitration Conference (KIAC) that witnessed over 200 eminent and aspiring practitioners of the arbitration industry from around the globe come together. Following up on the success of KIAC, the center recently organized Malaysia’s first Kuala Lumpur International Arbitration Week (KLIAW 2015) in May. Several conferences (Sports Arbitration, Islamic Arbitration, Sanctions Conference and RAIF Conference 2015) were held simultaneously over the week and it was attended by close to 400 prominent arbitrators and industry experts, international and local. Given the success of KLIAW 2015, we will be sure to try and make it an even bigger spectacle in 2016. The center also recently established a new Investment Treaty Arbitration and International Law department that is being headed by an experienced arbitrator who recently joined us from London. In addition to this initiative, we also recently teamed up with the Kigali International Arbitration Centre (KIAC) to conduct an adjudication-training program in Rwanda. KLRCA also encourages foreign parties interested in adjudication to sit for the respective courses held in Kuala Lumpur to become certified adjudicators in Malaysia.

How can KLRCA contribute to the Malaysia’s goal of becoming a developed nation by 2020?
The regionalization and globalization of elevated investment, trade, and commerce in and from Asia has contributed favorably toward the growth of the Malaysian economy. A significant number of contracts exchange hands when local and foreign investments come in. More companies and institutions alike are turning to arbitration in particular to resolve disputes peacefully and amicably. To safeguard their interests and investments when a dispute arises, these parties more often than not include an arbitration clause in their contracts. KLRCA’s international recognition of administering arbitration proceedings, both domestic and international, provides an impartial platform for these parties to do just that. A key selling point of arbitration is the international enforceability of its awards. The reason for this is that, it is usually much easier to enforce a foreign arbitral award than a foreign court judgment. While enforcement of foreign court judgment requires reciprocity agreement between the states, enforcement of the foreign arbitral award can be made on the basis of the New York Convention, to which Malaysia is a signatory. More than 150 states are members of this Convention as of today. This legal instrument offers a relatively simple and unified procedure for enforcement of any arbitral award. KLRCA’s vast experience in international arbitration matters gives confidence to local and foreign entities entering into contracts and carrying out transactions in Malaysia. When contracts are honored, businesses progress and the country’s economy grows. When a dispute arises, arbitration is in place to resolve the issue, hence ensuring the continuity of businesses.