AIAC sets up first office outside KL in Sarawak

KUCHING: The Asian International Arbitration Centre (AIAC) has established its first office outside Kuala Lumpur in Sarawak.

Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said the office will serve as a regional hub catering to Sarawak, Sabah and the wider Borneo region.

She said the hub will operate alongside AIAC’s headquarters in Kuala Lumpur, with implementation expected to begin next year.

“This is not a small branch. We are looking at it as a regional hub for Borneo.

“We will start implementing it next year, including the appointment of several personnel to run its operations,” she told reporters at the State Legislative Assembly (DUN) complex here today (Oct 19).

Earlier, Azalina paid a courtesy call on Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg before they witnessed the signing of an agreement between the Sarawak government and AIAC at Dewan Kenyalang in the DUN complex.

Azalina said the establishment will provide businesses and international investors with greater access to alternative dispute resolution (ADR) services, offering a more convenient and efficient means of settling commercial disputes.

She said the establishment of the hub is particularly significant given Sarawak’s growing international business and investment activities.

She explained that investors need confidence that their commercial interests are protected by a reliable legal framework, including access to dispute resolution mechanisms beyond conventional court proceedings.

“You can go to court for your interests and legal protection, but you must also have a legitimate expectation that there is a platform to handle international disputes in an easier and faster manner,” she said.

Azalina said the Sarawak government has provided the Sarawak Textile Museum, a heritage building in Kuching, to house the AIAC office, with RM10 million allocated for upgrading works.

She said the centre is expected to attract international lawyers, legal chambers and arbitration professionals to Sarawak, while creating opportunities for local legal practitioners.

Azalina also expressed appreciation to Abang Johari and the Sarawak government for supporting the proposal, which has received Cabinet approval.

The agreement was signed by State Secretary Datuk Amar Mohamad Abu Bakar Marzuki on behalf of the Sarawak government and AIAC chief executive officer Datuk Danesh Chandran.

The establishment comes as AIAC approaches its 50th anniversary and forms part of its efforts to expand access to arbitration and other dispute resolution services.

The Kuching office is also expected to support professional training, employment opportunities and international legal collaboration, while strengthening Malaysia’s position as a centre for alternative dispute resolution.