The status of the KLRCA as an independent arbitral institution for both domestic and international arbitration is a clear policy of the Malaysian Arbitration Act 1952. The Amendment to Malaysian Arbitration Act 1952 in 1980 includes a Section 34, which provides that any arbitration conducted under the Rules of the Centre is excluded from the supervision or intervention of the Malaysian Courts. Section 34 includes domestic arbitration as well as international arbitration.

The decided cases of Klockner Industries [1990] 3 MLJ 183; Soilchem Sdn Bhd case [1993] 3 MLJ 68; and Sarawak Shell Bhd case [1998] 2 MLJ 20, state as such, and no other interpretation to Section 34 should be given contrary to the decision of the courts.

In this connection, the Centre has revised its Arbitration Rules of 1998 as follows:
"This Section provides that any arbitration conducted under the Rules of the Centre is excluded from the supervision of the Malaysian Courts, which will not intervene in such arbitration. This is a unique provision not found in other jurisdictions."
The amendment is necessary to make the paragraph in conformity with the decision of the court in Section 34. (Arbitration Rules of Regional Centre for Arbitration Kuala Lumpur Revised August 2001)