March 27, 2013
Malaysia and AALCO Signs Host Country Agreement
Kuala Lumpur, 26 March 2013 – The government of Malaysia and the AsianAfrican Legal Consultative Organisation (AALCO) has renewed a host country agreement today, which was first signed in 1978. The agreement has enabled the Kuala Lumpur Regional Centre for Arbitration (KLRCA) to function in Kuala Lumpur as part of AALCO’s integrated disputes settlement system in the international economic and commercial field.
Minister in the Prime Minister’s Department, Datuk Seri Mohamed Nazri Aziz and Secretary-General of AALCO, Professor Rahmat Mohamad signed the agreement, witnessed by the Attorney-General of Malaysia, Tan Sri Gani Patail, who is also Chairman of the KLRCA Advisory Board.
The agreement provides an arrangement whereby the government of Malaysia would make available, among others, a premise and an annual grant to KLRCA, whilst the centre is accorded independence as well as certain privileges and immunities to perform its functions as a neutral international organisation.
Speaking at the signing ceremony, Datuk Seri Mohamed Nazri said, “Alternative dispute resolution and commercial arbitration had become such an integral part of the international legal system, and Malaysia is fortunate to have a thriving arbitration centre that is on its way to becoming a leading hub in the region.”
Professor Rahmat Mohamad commended the good relations between government of Malaysia and KLRCA, stating that Centre has a special place in AALCO’s history as it was the first dispute resolution centre set up by AALCO in the world in 1978.
As a regional centre, KLRCA is entrusted with several broad-based functions as a coordinating agency in AALCO’s integrated disputes settlement system. This includes generating stability and confidence in international economic transaction within the Asia-Pacific region; the promotion of the institution of arbitration as an effective means for settlement of disputes; the wider use and application of the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules within the region; the establishment and growth of national arbitration institutions; and encouraging inter-institutional cooperation.