Professor Datuk Sundra Rajoo describes how The Kuala Lumpur Regional Centre for Arbitration (KLRCA) started the year on the “front foot”, as well as giving an account of what the KLRCA has done more recently and how and why he expects to see Malaysia become Asia’s premier arbitration hub. He also talks about the jurisdictions the KLRCA has and will work in tandem with.
ASIAN-MENA COUNSEL: We spoke in 2014 regarding new facilities the KLRCA had moved into. How did that affect the centre and what were the other highlights of 2014?
Professor Datuk Sundra Rajoo: Moving into our new premises that are five times larger than our previous site has certainly allowed us to advocate arbitration within the country and region on a bigger and more extensive scale. We can now conduct multiple evening talks and conferences simultaneously, so 2014 was a rather eventful year.
There were numerous highlights throughout the year, each one significant in its own way. We started 2014 on the front foot by organising a large Asian domain name dispute resolution centre workshop and conference consecutively that attracted the world’s leading domain name and intellectual property experts.
Following the impending implementation of the construction and industry payment and adjudication act (CIPAA) 2012, which was enforced on April 15, 2014 by the government of Malaysia, the KLRCA organised its first of two mammoth CIPAA conferences for the year 2014 in February entitled, ‘Getting Paid: CIPAA Updates’. A capacity crowd of 1000 participants comprising key stakeholders and keen observers of the Malaysian construction industry turned up for this event. The second conference entitled, ‘CIPAA In Practice’ held in June was equally successful, as another encouraging crowd of one thousand participants turned up to enhance their knowledge of the functions and implications of CIPAA being implemented.
 With the naming of the KLRCA as the adjudication authority by virtue of Part V of CIPAA 2012, the centre has a key role to play in its capacity as the default appointing and administrative authority. Rightly so, the centre organised four courses throughout the year made up of two basic one-day courses: ‘Practical Drafting & Defending of Adjudication Claims’ and two comprehensive five-day courses: ‘the Adjudication Training Programme’.Taking centre stage in the month of June was the KLRCA’s successful inaugural Kuching International Arbitration Conference 2014 that saw over 200 eminent and aspiring practitioners of the arbitration industry from around the globe congregate in the exotic island of Borneo to partake in an extensive three day symposium of deliberating the foundations of arbitration, scrutinising the current state of the practice and forming roadmaps for the future. The primary hype of 2014 was the growing anticipation surrounding the KLRCA’s big move into its new state of the art premises – Bangunan Sulaiman. After 32 years operating out of its previous premises, the KLRCA made the shift in August. This was followed by a soft launch in September that was officiated by the Chief Justice of Malaysia, Tun Arifin Zakaria. Coinciding with the soft launch was the welcoming of the United Kingdom’s 39 Essex Street Chambers into Bangunan Sulaiman, making them the first foreign chambers to set up an office in Malaysia. To commemorate the occasion, the KLRCA teamed up with 39 Essex Chambers to host a ‘Law & Infrastructure Seminar’. The KLRCA’s apotheosis for the year 2014 came in the form of the official unveiling of its newest premises, Bangunan Sulaiman, by the Prime Minister of Malaysia, The Right Honourable Dato’ Sri Mohd Najib Tun Razak. It was a premier affair as the guest list included ministers, ambassadors, international dignitaries, eminent members of the Malaysia judiciary and various local and international media representatives. To cap off the year, the KLRCA teamed up with Washington-based ‘International Centre for Settlement of Investment Disputes’ and the French headquartered ‘International Chamber of Commerce’ to organise full day seminars that attracted capacity crowds. As the month of December drew to a close, the KLRCA held its twenty-third evening talk of 2014. These free evening talks, marketed to the arbitral community and public, have since become a permanent and popular fixture on the KLRCA’s monthly calendars. AMC: With the first quarter of 2015 recently coming to a close, can you give some insight into what has happened in the KLRCA’s recent history? The following month, the KLRCA co-hosted a seminar with our counterparts from across the Straits of Malacca, The Indonesia National Board of Arbitration. Also held in conjunction with this seminar was the signing of a co-operation agreement between both arbitral institutions that will see both parties jointly organising seminars, conferences, educational training and internship programmes on arbitration, with the main goal of enhancing each party’s contribution to their respective nations and continent. A flurry of timely evening talks ensured the month of March was equally as busy, with the high point of the month coming in the form of our African adventure. Using our strong adjudication platform, the KLRCA teamed up with the Kigali International Arbitration Centre to conduct a week long ‘Adjudication Training Programme’ in the heart of Rwanda. |
 AMC: Looking to the rest of this year and beyond, what does the KLRCA intend to do in its mission to become Asia’s premier arbitration hub? DSR: 2014 was about expanding horizons and raising the centre’s standards, stature and global presence, whilst firmly exclaiming its resolution and intent to become the region’s preferred arbitration centre. 2015’s focus is to strengthen our presence within South East Asia and to carry the KLRCA brand name into emerging arbitral markets such as India, Russia and Africa.In our mission to become Asia’s premier arbitration hub, we have already embarked on getting several new initiatives off the ground. All these initiatives will continue to enhance our portfolio making it a favourable venue for foreign and local parties when it comes to all their arbitration needs. We are looking to continue organising yearly and quarterly international conferences and seminars: a fixed platform where eminent arbitrators and the world’s best speakers congregate under one roof to have a discourse on the latest offerings of the arbitration world. Bringing in these experienced speakers to share their expertise and learned views on a regular basis will certainly raise the standards in this region. An example of this would be the Kuala Lumpur International Arbitration Week, set to take place May 7–9, 2015. The KLRCA also seeks to further collaborate with established and upcoming arbitral institutions from around the globe to share best practices. By striking up memorandums of understanding with these institutions, proactive capacity building and knowledge transfer can be easily facilitated, allowing us to improve on our current levels. AMC: Are there any specific factors such as laws, employees or location that set the KLRCA apart from the likes of the HKIAC and SIAC? Foreign lawyers are allowed to appear in arbitral proceedings, and no withholding tax is imposed on the fees earned by foreign arbitrators. Cost of arbitral proceedings, as well as other secondary costs, such as hotel, food and beverage, and transport in Malaysia are lower than in other countries in the region. The KLRCA has introduced new rules to cater to the growing demands of the global business community with the introduction of the KLRCA i-Arbitration Rules, the KLRCA Fast Track Rules and the Mediation and Conciliation Rules. The KLRCA also constantly updates its rules so as to accommodate for the developments of the commercial world. One of the many advantages of arbitrating in Malaysia is the savings, as cost is significantly lower than in Singapore and Hong Kong. Malaysia is a highly modern city with an affordable cost of living. Kuala Lumpur, its capital city, in particular has superb infrastructure, complemented by a multicultural society that lives in pleasant harmony with one another. The road and rail transport are convenient and there are plenty of hotels and restaurants that are able to cater to all walks of life. In terms of telecommunications infrastructure, Kuala Lumpur is on par with some of the best cities in the world, evident by the availability of Wi-Fi everywhere in the city. Additional attractions include Malaysia being supported by a market-oriented economy, its pro-business government policies, industrious workforce and its sophisticated and efficient legal system. Malaysia offers investors a wide range of investment opportunities too. The favorable business environment in Malaysia has made it one of the world’s top investment destinations for offshore manufacturing operations. At the KLRCA, our services are highly dependable due to all of these elements, and we have not let anyone down, with the number of parties coming to us for facilitation of dispute resolution increasing year on year. |
 AMC: The KLRCA internship programme is continuously rising in stature. Could you give our readers some background information on it as well as telling them about the programme going forward? DSR: The number of applicants from around the globe has increased significantly over the past 18 months; a clear indication that the KLRCA brand name is growing internationally. Some applications come in through our website and the rest through referrals from our panel of arbitrators, professors and academics from esteemed law institutions, and established law firms.The screening process is thorough, and at any given time, we will be looking at up to three or four applications at once to see which candidate fits our requirements at that particular time the best. For example, when we identified Africa and Russia as upcoming markets that we would like to expand into, we took on interns from Ethiopia and Ukraine. Apart from building up their knowledge on the arbitral industry in Malaysia, the KLRCA benefitted from their native cultural perspective, as well as their grasp of the local language. It is only right if this relationship remains mutually beneficial. Permanent job offers have also been given out to performing interns that have expressed their interest to stay on. As for the rest, it is always pleasing to know that the majority of them have moved onto influential government roles, international arbitration firms and teaching positions. Whether they move on or not, we still keep in touch with these individuals and some of them still assist us on ad hoc matters from around the globe. Internships offered by the KLRCA sometimes go beyond the conventional arrangement. For instance, we recently had a student from Japan who had just completed her PhD in Islamic arbitration and was looking to conduct further research in Malaysia. It was a flexible arrangement as she divided her weekdays between conducting research at the national library and assisting us with i-Arbitration matters at the centre. The KLRCA’s internship programme has yielded promising results so far and we are certainly looking to welcome more bright applicants to our home. AMC: Could you please give the In-House Community insight into the new initiatives that are set to take off this year? Arbitration of sporting disputes is also high on the list. The KLRCA will be ramping up its efforts to launch a platform for the resolution of sporting disputes by alternative dispute resolution, teaming up with the Olympic council of Malaysia and other relevant stakeholders to draft the required legislative amendments, enabling the creation of such a mechanism. The remaining framework, including procedural rules and training initiatives, has also been commenced with an eye to launching the new platform in mid-2015. This platform will allow the KLRCA to leverage its collaboration with the court of arbitration for sport in developing its own expertise in sporting disputes, providing a much-needed service to the Malaysian sporting community and in the process, building a regional hub for the arbitration of sporting disputes both commercial and otherwise. Touching on the maritime industry, the centre is in the process of registering a national society to address a perceived need within Malaysia for a body and forum able to promote the maritime legal industry. This society, to be created as a platform, is needed to bring together the various stakeholders within Malaysia and the region, and the society will be open to all sectors of the maritime industry including lawyers, in-house counsel, corporate representatives and arbitration practitioners. Other efforts set to take shape include: a collaboration with the Companies Commission, Malaysia to create a dispute resolution system for intra-companies disputes; development and promotion of investor-state arbitration in the region with the forthcoming ASEAN Economic Community, with Malaysia taking the ASEAN chair in 2015; and last but not least, the KLRCA’s tenacious efforts towards the continued development of domain name dispute resolution regionally and globally, providing for an alternative hearing avenue to the World Intellectual Property Organisation. |