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PRACTICE NOTES
Introduction The 2026 AIAC Rules represent a significant advancement over the 2023 AIAC Rules. Notably, while the 2023 AIAC Rules incorporated the UNCITRAL Arbitration Rules (as revised in 2021), the 2026 AIAC Rules have dispensed with this approach. As a result, the 2026 AIAC Rules now operate as a more cohesive and self-contained set of rules and also feature the key changes described below. AIAC Court of Arbitration One of the most significant amendments introduced by the 2026 AIAC Rules is the establishment of the AIAC Court of Arbitration, headed by a President and supported by a Registrar. This new structure replaces the previous Director-centric model found in the 2023 AIAC Rules. Under the revised framework, key functions such as the appointment of arbitrators, the determination of challenges, and decisions on consolidation are now vested in the AIAC Court and/or its President. The Registrar is responsible for the day-to-day administration of arbitrations. This clear division of responsibilities brings the AIAC inline with the governance models adopted by other
PRACTICE NOTES
Consolidation Request A party may apply to the AIAC to consolidate two or more arbitrations administered under the AIAC Rules into a single arbitration if (Rule 8.1): • the parties agree; • all the claims and counterclaims are made under the same arbitration agreement; or • the claims are made under multiple but compatible arbitration agreements, where there is a common question of law or fact and the rights to relief claimed arise out of the same or a series of related transactions It is unclear from the wording of Rule 3.1(c) whether the ‘common question of law or fact’ limb is intended to work in conjunction with or as an alternative to the ‘same or a series of related transactions’ limb. The former is a new addition to the 2026 AIAC Rules, presumably with the intention of widening rather than narrowing the criteria for consolidation. A consolidation request must include the following (Rule 8.2): • the case reference numbers of the arbitrations to be consolidated; • a copy of the document containing the
PRACTICE NOTES
Pre-commencement and scope Incorporation Parties are deemed to agree that an arbitration will be conducted and administered by the AIAC in accordance with the 2026 AIAC Rules when they agree to (Rule 1.1(a)): • refer their dispute to the AIAC for arbitration; or • refer their dispute to arbitration in accordance with the AIAC Arbitration Rules Arbitration Act 2005 The following sections of the Arbitration Act 2005 [Act 646] will not apply to arbitrations seated in Malaysia which are conducted and administered by the AIAC under the 2026 AIAC Rules (Rule 1.1(b)): Section 41 (determination of a preliminary point of law by the High Court); and Section 46 (extension of time by the High Court for making an award). Interpretation and definition The English version of the 2026 AIAC Rules will prevail over other language versions (Rule 2.1). Days ‘Days’ are defined as calendar days ending at 11:59 p.m. (GMT +8) unless otherwise specified and include weekends and public holidays (Rule 2.4). It may be sensible to modify this definition
PRACTICE NOTES
Appointment General rules The President of the AIAC Court is the appointing authority for arbitrations under the AIAC Rules (Rule 15.1). S/he may seek any necessary information from the parties and exercise the powers vested by the AIAC Rules, in exercising the power of appointment (Rule 15.4). Any nomination or agreement by the parties to nominate or appoint the Arbitral Tribunal is subject to confirmation of the appointment by the President (Rule 15.5). Number of arbitrators The parties may agree on the number of arbitrators (Rule 15.2). Failing such agreement in the arbitration agreement, a sole arbitrator will be appointed by default unless the AIAC Court, upon application of a party, determines that the nature and complexity of the dispute warrants appointing three arbitrators instead (Rule 15.3). Considerations for appointment The President will consider the following when appointing arbitrators (Rule 16.1): • the nature and circumstances of the dispute; • the applicable law; • the seat and language of the arbitration; • the nationality of the parties; • the availability of the
PRACTICE NOTES
Decision making The Arbitral Tribunal can make separate awards on different issues at different times (Rule 41.1). If the Arbitral Tribunal consists of more than one arbitrator, any award or decision will be decided by a majority. If a majority decision cannot be achieved, the award or decision will be made by the presiding arbitrator alone (Rule 41.2). Form An award is final and binding on the parties (Rule 41.3). It must: • be in writing; • state the date on which the Award was made and the seat of the arbitration (Rule 41.5); • state the reasons for the Arbitral Tribunal’s decision unless the parties have agreed that no reasons are to be given (Rule 41.4); • be signed by the arbitrators physically or electronically, unless otherwise provided by law (Rule 41.5); and • if the Arbitral Tribunal consists of more than one arbitrator and any of them fails to sign, be signed by the majority and state the reason for the missing signature (Rule 41.6) Technical review Time limit The
PRACTICE NOTES
Arbitral Tribunal’s jurisdiction Separability The Arbitral Tribunal can rule on its own jurisdiction, including any objections to the existence or validity of the arbitration agreement. In so doing, it will consider the following principles (Rule 26.1): • an arbitration agreement which is part of a contract is separable from the other terms of the contract; and • a decision that the contract is null and void will not automatically invalidate the arbitration agreement Jurisdictional challenge A party may raise a jurisdictional challenge even if it nominated the challenged arbitrator or requested the President of the AIAC Court to appoint or confirm the Arbitral Tribunal (Rule 26.4). The jurisdictional challenge can take two forms: • an allegation that the Arbitral Tribunal does not have jurisdiction; and • an allegation that the Arbitral Tribunal is acting beyond the scope of its authority Any allegation that the Arbitral Tribunal does not have jurisdiction must be raised no later than in (Rule 26.3): • the statement of defence; • where a counterclaim has
NEWS
The Asian International Arbitration Centre (AIAC) has announced a four-day sports arbitration training course, delivered in partnership with the SOAS Arbitration and Dispute Resolution Centre (SADRC), SOAS University of London. The course will take place on 9–12 September 2025 at Bangunan Sulaiman, AIAC, Kuala Lumpur. Participants will explore international sports law, global and Malaysian arbitration procedures and the role of internal judicial bodies and the Court of Arbitration for Sport (CAS). An early registration fee is available until 22 August 2025.
NEWS
The Asian International Arbitration Centre (AIAC) has announced that Asia ADR Week 2025 will take place from 7–11 October 2025 at the AIAC Auditorium, with early bird rates available until 20 September 2025.
NEWS
The Asian International Arbitration Centre (AIAC) has published an announcement on key legislative amendments to the Arbitration Act 2005 and the Construction Industry Payment and Adjudication Act 2012 in Malaysia. AIAC has noted that the amendments are in line with the goals of the Supplementary Agreement to the Host Country Agreement between the Government of Malaysia and the Asian-African Legal Consultative Organisation formalised on 20 February 2024, as well as ongoing reforms at AIAC.
NEWS
The Asian International Arbitration Centre (AIAC) has announced the launch of the AIAC Court of Arbitration and confirmed the appointment of its president and members. The newly established court is intended to further AIAC’s mandate of providing neutral, independent and efficient alternative dispute resolution (ADR) services. It is composed of a panel with domestic and international ADR experience, whose expertise is expected to strengthen AIAC’s institutional standing and support the effective functioning of the court.
NEWS
The Asian International Arbitration Centre (AIAC) has announced the appointment of Dato' Mary Lim Thiam Suan as President of the AIAC Court of Arbitration, with effect from 1 January 2026. In this role, Dato' Mary will be responsible for overseeing transparency, integrity and accountability across the AIAC's alternative dispute resolution administration and case management processes.
NEWS
The Asian International Arbitration Centre (AIAC) has established its first branch outside Kuala Lumpur in Kuching, Sarawak, with the support of the Government of Sarawak. The parties formalised an agreement on 19 October 2026 as part of the AIAC’s institutional reform programme. The branch aims to improve access to alternative dispute resolution (ADR), support the effective resolution of commercial disputes and advance Sarawak’s investment objectives under its Post-Covid-19 Development Strategy 2030. It also seeks to strengthen regional ADR collaboration, develop local talent and create employment opportunities.