THE Malaysian Bar wants the government to appoint a new director of the Asian International Arbitration Centre (AIAC) without any delay.

Bar president Karen Cheah said the post had been vacant since December 1 following the expiration of Suriyadi Halim Omar’s tenure.

“The position of a director is absolutely pivotal at an institutional level at the AIAC.  

“In the six weeks since the AIAC has been without a director, matters requiring administration by the AIAC have been suspended, resulting in the deferment of registration and commencement of new matters,” Cheah said in a statement.

She said that the situation was untenable and only served to erode public confidence in the country’s foremost alternative dispute resolution (ADR) mechanism.  

“Any further delay in this appointment could have potentially detrimental consequences for parties who depend on adjudication and arbitration as a means of dispute resolution.

“The approval from the director is necessary at almost every level of proceedings in the AIAC,” she said. 

Cheah added that an absence of a director would result in various problems, including new arbitrations that could not be registered, arbitrators that could not be appointed, ongoing arbitrations being hampered, and awards that could not be delivered.  

She noted that under the AIAC Arbitration Rules and the Arbitration Act 2005, only the director is empowered to carry out key functions of the AIAC.

Cheah also said that a vacancy will also particularly be disruptive for claims under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) where the AIAC is the sole administering authority.  

“Without a director being appointed, affected parties are deprived of their rights under CIPAA.  

“The absence of a director of the AIAC effectively means that adjudications under CIPAA cannot commence, and as a result, cannot be completed.  

“This sort of uncertainty will only fuel the public’s disillusionment in ADR processes.  

“Such delay defeats the purpose of CIPAA, which is to facilitate speedy resolution of disputes to ensure cash flow in the construction industry.”

Cheah also said that the delay in appointing a director also created a domino effect that has already begun, resulting in negative repercussions in the business community.  

“We are reminded of a similar disruption that was experienced in 2020 when there was a significant delay in the appointment of a new director.  

“The last thing we need is ambiguity and unpredictability in the progress of ADR cases in the AIAC.”

She warned that a continued delay would result in parties who need their ADR opting for arbitration centres in other jurisdictions such as the Singapore International Arbitration Centre or Hong Kong International Arbitration Centre. –  January 12, 2023.