Arbitration in Malaysia is regulated to some extent by the Arbitration Act 1952 (Act 93) and Order 69 of the Rules of the High Court 1980.

The Arbitration Act of 1952 is based on the English Arbitration Act 1950 and not the UNCITRAL Model Law.

There are presently two different regimes in Malaysian law, namely arbitrations immune from court intervention under section 34 of the Arbitration Act 1952 and arbitrations to which the rest of the Act applies.

Arbitrations immune from court intervention under section 34 of the Arbitration Act 1952 consist of those conducted under the Convention on the Settlement of Investment Disputes between States and Nationals of other States 1965 (“Washington Convention”) or arbitrations conducted under the United Nations Commission on International Trade Law (UNCITRAL) Rules of Arbitration 1976 and the Rules of the Regional Centre for Arbitration in Kuala Lumpur.

Malaysia has on 15^th March 1966 adopted the Washington Convention under the Convention on the Settlement of Investment Disputes Act 1966.  

The Kuala Lumpur Regional Centre for Arbitration adopts the UNCITRAL Rules of Arbitration 1976 with relevant modifications to fit into its institutional framework.  Presently, it is the only recognized centre for arbitration in Malaysia.  The Malaysian Government strongly supports international arbitration, as evidenced by the financing of the infrastructure of the Kuala Lumpur Regional Centre for Arbitration, and in encouraging a regime that favours international arbitrations.

Enforcement of the arbitral awards is provided for in section 34(2) and 34(3) of the Arbitration Act 1952. Enforcement of an arbitral award procured as a result of arbitral proceedings conducted under the Washington Convention 1965 shall be in accordance with the provisions of that Convention whereas enforcement of an arbitral award given under the Rules of KLRCA shall be in accordance with the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the “New York Convention”).

Malaysia has scheduled the 1958 New York Convention to its Convention on the Recognition and Enforcement of Foreign Arbitral Awards Act 1985 (Act 320) which came into force on 7^th June 1959.