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Brief Update on the Key Amendments to the Arbitration Act 2005 and the Construction Industry Payment and Adjudication Act 2012

Amendments to the Arbitration Act 2005 and Construction Industry Payment and Adjudication Act 2012 took effect on 1 January 2026, marking a significant shift in Malaysia’s construction dispute framework. Key reforms include third-party funding, automatic recognition and digital signing of arbitral awards, and institutional restructuring aligned with the AIAC Court of Arbitration, enhancing efficiency and commercial certainty.

Co-written by

Koh Yi Ting, Partner
(Construction Dispute Resolution)
koh.yiting@azmandavidson.com.my

 

Zephyrus Chong Saow Ching, Associate
(Construction Dispute Resolution)
saowching.chong@azmandavidson.com.my