KUALA LUMPUR: The Asian International Arbitration Centre (AIAC) will sign an agreement on Oct 19 to set up its Sarawak branch office.
Deputy Prime Minister Datuk Seri Fadillah Yusof said the move would bring institutional dispute resolution closer to businesses and communities in Sarawak and the wider Borneo region.
Fadillah, who is also Energy Transition and Water Transformation minister, said the agreement would be signed in the presence of the Premier of Sarawak and Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
"It reaffirms the commitment of both federal and state governments to the growth of our Alternative Dispute Resolution (ADR) industry, consistently, across the region," he said when officiating the eighth edition of the Asia ADR Week today.
"Our objective is not simply to establish another institutional presence.
"It is to build a stronger, more accessible and interconnected ADR ecosystem that serves local needs while contributing to regional growth."
He said he was encouraged by AIAC's growing engagement with the Borneo International Centre for Arbitration and Mediation, the Sarawak Institute of Alternative Dispute Resolution and other local professional bodies.
Fadillah said an effective dispute resolution system was part of the country's economic infrastructure as Malaysia continued to attract investment in infrastructure, energy, technology and advanced industries.
"Investors need more than sound policies and commercial opportunities.
"They need confidence that disputes will be handled fairly, efficiently and predictably, especially across borders," he said.
He said the need for effective dispute resolution would grow as the priorities in Budget 2027 became projects, contracts and commercial activity.
"Our legal and institutional infrastructure must therefore be built alongside our physical and digital infrastructure," he said.
He said his ministry was strengthening the national electricity grid, expanding renewable energy capacity and improving water security and flood mitigation infrastructure.
"These are long-term investments, with complex contractual arrangements and many stakeholders.
"Effective ways of managing conflict are key to keeping them on track, before disputes can disrupt delivery," he said.
He also urged AIAC to continue advancing the Construction Industry Payment and Adjudication Act 2012, which he moved as a minister more than a decade ago.
"My aspiration is for it to remain not only an effective mechanism for Malaysia's construction industry, but a model of statutory adjudication that other jurisdictions look to for guidance and inspiration," he said.
He said AIAC should look beyond celebrating its history as it approached its Golden Jubilee in 2028 and reflect on the institution it aspired to become over the next 50 years.
"ADR is not a lesser path. It is often the wiser one," he said.
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