Govt mulling centralised mediation centre

Govt mulling centralised mediation centre

Law and institutional reform minister says the centre will focus on commercial disputes under RM250,000, common among small businesses and freelancers.

azalina othman said
The proposed mediation centre will expand access, include retired judges and private lawyers as mediators, and provide structured training to ensure consistent dispute resolution, said law and institutional reform minister Azalina Othman Said. (Bernama pic)
KUALA LUMPUR:
The government is considering the establishment of a centralised Malaysian Mediation Centre under the legal aid department, says law and institutional reform minister Azalina Othman Said.

Azalina said the initiative aims to expand access to mediation, broadening the pool of mediators to include retired judges, legal officers and private lawyers, and ensuring consistency through structured training and capacity building.

She also announced that the Malaysian Asian International Arbitration Centre would launch a pro-bono commercial mediation initiative to provide an aided resolution for commercial disputes within a prescribed threshold.

“This initiative is envisioned to garner strength through the support of a dedicated panel of imperial mediators, ultimately focusing on amicable, effective resolution that contributes to the continuous cycle of national economic growth,” she said in her address at the CLEA Biennial Conference here today.

Speaking to reporters later, Azalina said the mediation centre could handle commercial disputes valued under RM250,000, a common issue for small businesses and freelancers.

“Many small businesses and freelancers face issues like unpaid fees for services such as photography, videography, and event management, but they cannot afford lawyers or do not qualify for legal aid. Legal letters alone can cost RM350, which is expensive,” she said.

Azalina added that mediation is cheaper than going to court, with fees costing around RM300 to RM500 per session.

“This is similar to the concept of ‘sulh’ in Islam… reconciliation through mediation,” she said.

Azalina said that while physical centres are planned for Kuala Lumpur and Putrajaya, mediation could also be conducted online to save travel and court expenses, a model judges found effective during the Covid-19 pandemic.

She added that the proposal would be brought to the Cabinet for discussion to align with ministries’ existing mediation programmes.

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