Malaysia, PCA ink host country agreement

PUTRAJAYA: Malaysia and the Permanent Court of Arbitration (PCA) today signed a Host Country Agreement, a legal framework to enable the conduct of PCA-administered proceedings in Malaysia on an ad-hoc basis.
Malaysia thus becomes the 10th PCA host nation that provides another alternative venue for PCA services in its administered arbitration, mediation and conciliation proceedings, and fact-finding commissions of inquiry.
The signing of the landmark agreement was witnessed by Prime Minister Datuk Seri Najib Tun Razak at his office here.
Malaysia was represented by Attorney General Tan Sri Mohamed Apandi Ali and PCA by its Deputy Secretary-General, Brooks W. Daly.
Outside of the PCA headquarters in The Hague, Malaysia joins nine other countries - Argentina, Chile, China, Costa Rica, India, Mauritius, Singapore, South Africa and Vietnam - in the geographically and strategically growing list of PCA host nations.
Future PCA proceedings and activities hosted by Malaysia will be conducted at the historic Bangunan Sulaiman (Sulaiman Building) in Kuala Lumpur, home of the Kuala Lumpur Regional Centre for Arbitration (KLRCA).
In his speech, Mohamed Apandi said the signing of the Host Country Agreement was a significant development for Malaysia as it continued to play a key role in regional institution building in Alternative Dispute Resolution (ADR).
"Malaysia's now established reputation as an attractive seat for arbitration and ADR in general began with an acknowledgement by government that justice for the business community, which is essential to the vibrancy and success of the Malaysian economy, needed to be more accessible.
"There is a need to improve upon complex internal processes and practices in order to meet the needs of business, investment and industry players seeking swift and equitable resolution to their disputes," he said.
Mohamed Apandi said Malaysia, as a host, was under the obligation to provide certain privileges and immunities to the PCA, PCA officials and adjudicators, and participants in PCA-administered proceedings, pursuant to the designation of the PCA by the Ministry of Foreign Affairs as an international organisation.
"The dynamic partnership with PCA will provide further opportunities for institutional and capacity building, enhanced expertise among ADR practitioners and stakeholders, and growing confidence in Malaysia as an emerging and leading forum in Asia for international dispute resolution," he said.
The Host Country Agreement shall enter into force 30 days following the date upon which notice is given by the government to the Secretary-General of the PCA.
Meanwhile, Daly said the signing corresponded to another undertaking that Malaysia had made in 2002, to make PCA available at all times to all countries.
"PCA is looking forward to ongoing cooperation with KLRCA in which both parties have important roles in dispute settlement," he said.
The PCA is an inter-governmental organisation that provides administrative support in international arbitrations and other forms of peaceful resolutions involving various combinations of states, state entities, international organisations and private parties.
Malaysia became one of the 121 member states of PCA on May 2002. — Bernama