AIAC MEDIATION RULES

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DIRECTOR’SMESSAGE
The Asian International Arbitration Centre (“AIAC”) stands
resolute in delivering dispute resolution services with apragmatic and cost-efficient framework. It is a legacy that we
upheld for more than 45 years. This is in line with ourcommitment to meet the growing expectations of the ADR
community.
It is my pleasure to present the latest edition of our ADR rules:
AIAC Arbitration Rules 2023, AIAC i-Arbitration 2023, and AIACMediation Rules 2023 (“Rules”). The rationale behind theinception of our Rules is as follows:First, our strong collaboration with the United Nations
Commission on International Trade Law (“UNCITRAL”) plays a
key role. UNCITRAL has developed the most widely used set ofarbitration rules through in-depth negotiations amongst State
representatives and observing organisations. In line with theabove, our Rules are rooted in UNCITRAL's Arbitration Rules
and UNCITRAL’s Mediation Rules which are time-tested
mechanisms.
Second, the AIAC Rules offer clear guidance for arbitrators,
lawyers, and disputing parties, in order to reduce confusion.
While we prioritise precision, adopt a hands-off approach thatallows for customisation and flexibility, allowing customisationfor various disputes.
Third, we sought to streamline the process in order to provide
efficiency and minimise the duration or the costs associatedwith lengthy legal proceedings.

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ASIAN INTERNATIONAL ARBITRATION CENTRE (AIAC)

Fourth, selected experts from the four corners of the globe
gave their opinion on the application of these Rules. This is inline with our endeavour to have a stronger internationalpresence and to cater for the needs of different users fromaround the world.
Fifth, the AIAC’s credentials in terms of fairness andimpartiality are self-evident. In this regard, the Centre isaccorded immunity and privileges under the Host Country
Agreement and the International Organization (Privileges and
Immunities) Act 1992.
The ADR community can be assured that the AIAC and its Rules
ensure fair and impartial grounds for the parties wishing tobring their dispute before it.
The AIAC presents to you these Rules embodying innovation,
quality, and UNCITRAL's ADR expertise.
Thank you.
Yours sincerely,

Datuk Sundra Rajoo
Director

TABLE OF CONTENTS
Model Mediation Clause

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Model Submission Agreement

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Med-Arb Procedure

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Preamble		5

Guide to the AIAC Mediation Rules

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PART I – AIAC MEDIATION RULES
Rule 1
Rule 2Rule 3Rule 4Rule 5Rule 6
Rule 7Rule 8Rule 9Rule 10
Rule 11
Rule 12Rule 13Rule 14
Rule 15
Rule 16
Rule 17
Rule 18
Rule 19

Application of the Rules
Commencement of mediation
Place and language(s) of the mediation
Appointment of the mediator
Independence and impartiality ofthe mediator
Replacement of the mediator
Role of the mediator
Role of the parties
Conduct of the mediation
Timetable
Authority and representation
Confidentiality
Settlement agreement
Termination of the mediation
Costs and fees
Administrative assistanceExclusion of liability
Schedule of fees
Vacancy of the position of Director

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10
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PART I – SCHEDULES OF FEES
A. Domestic Mediation
B. International Mediation

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Model Mediation Clause“Any dispute, controversy or claim arising out of or relating to thiscontract, or the breach, termination, or invalidity thereof, shall be
submitted to mediation in accordance with the AIAC Mediation Rules.”The parties should consider adding:(a)	The parties agree that there will be one mediator, appointed
by agreement of the parties within 30 days of the mediationagreement, and if the parties cannot agree, the mediatorshall be selected by the Director of the AIAC;(b)	The language of the mediation shall be …;(c)	The location of mediation shall be…

Model Submission Agreement
Parties wishing to substitute the existing mediation clause for one
referring the dispute to mediation under the Asian International
Arbitration Centre (AIAC) Mediation Rules may adopt the following
form of an agreement:“The parties agree that the dispute arising out of… shall be settled bymediation under the AIAC Mediation Rules”.
This form may also be used where a contract does not contain amediation clause and/or in case of the mediation of investmentrelated differences, whether or not such differences or disputes
arise out of a contract between the parties.

Med-Arb Procedure
Med-Arb procedure is a process where a dispute is referred tomediation and if the parties are able to settle their dispute
through mediation, their mediated settlement may be recorded asa consent award.
Parties wishing to take advantage of this tiered dispute resolution
mechanism may consider incorporating the following clause in
their contracts or submission agreement:
If the dispute, or any part thereof, is not settled within 60 days of
the request to mediate under these Rules, the parties agree toresolve any remaining matters by arbitration in accordance with
the AIAC Arbitration Rules.
(a) The number of arbitrators shall be (one or three);(b) The seat of arbitration shall be (town and country);(c) The language of the arbitration shall be…

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Preamble
The Asian International Arbitration Centre (the “AIAC”) Mediation
Rules 2023 (the “AIAC Mediation Rules”) take effect from 24th
August 2023.
Upon the coming into effect of the AIAC Mediation Rules, allprevious editions of the AIAC Mediation Rules shall no longer beapplicable to mediation proceedings commenced after this dateunless otherwise agreed to by the parties.
Under any mediation agreement referring to the AIAC Mediation
Rules, the parties shall be deemed to have agreed that thefollowing rules, or such amended rules, in force on the date of thecommencement of mediation, shall be applied unless otherwise
agreed by the parties.
All approvals, directions, notices, guidelines, circulars, guidancenotes, practice notes, rulings, decisions, notifications, exemptions
and other executive acts, howsoever called, given or made by AIAC
through their website on or before 24th August 2023 shall continue
to remain in full force and effect, until amended, replaced,
rescinded or revoked.
This preamble shall constitute an integral part of the AIACMediation Rules.

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ASIAN INTERNATIONAL ARBITRATION CENTRE (AIAC)GUIDE TO THE AIAC MEDIATION RULES
1.	The AIAC Mediation Rules are designed for the mediation of any
differences or disputes, whether or not they arise out of a contract
between the parties.
2.	The English text of the AIAC Mediation Rules prevails over otherlanguage versions.
3.	All references in the AIAC Mediation Rules to the singular shall
include the plural where applicable and vice versa.
4.	Definitions used in the AIAC Mediation Rules:
“AIAC” means the Asian International Arbitration Centre;
“days” means calendar days and includes weekends and public
holidays;
“Director” means the Director of the AIAC;
“ domestic mediation” means any mediation which is not an“international mediation”;
	“international mediation” means a mediation where: –a)	one of the parties to the mediation has its place of business in
any State other than Malaysia; orb)	any place where a substantial part of the obligations of any
commercial or other relationship is to be performed or theplace with which the subject matter of the dispute is mostclosely connected is in any state other than Malaysia; orc)	the parties have expressly agreed that the subject matter ofthe mediation relates to more than one State.
“ Rule” shall refer to the numbered provisions of the AIACMediation Rules.

Part IAIACMEDIATION
RULES

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ASIAN INTERNATIONAL ARBITRATION CENTRE (AIAC)

Rule 1 - Application of the Rules
1.	These Rules apply to any mediation of any present or future
dispute:a)	where the parties have agreed that the AIAC Mediation Rules
will apply whether before or after a difference or dispute
arises; orb)	the parties have authorised the mediator or another person or
institution to design a mediation process and that mediator,
person or institution adopts the AIAC Mediation Rules inwhole or in part.
2.	Where any of the Rules is in conflict with a provision of law fromwhich the parties cannot derogate, that provision of law prevails.
3.	Mediation under the Rules encompasses any process, whether
referred to by the term mediation, conciliation or any mechanism
whereby parties request a third person to assist them in theirattempt to reach an amicable settlement of their dispute.

Rule 2 - Commencement of mediation
1.	Any party wishing to initiate mediation pursuant to the AIACMediation Rules shall submit a request for mediation (the“Request for Mediation”). The Request for Mediation shallcontain:a)	the names, addresses (including email addresses), telephone
numbers of the parties and any legal or other representatives
involved;b)	reference to any mediation clause or a copy of the separate
mediation agreement, if any;c)	a brief explanation of the dispute; andd)	proof of payment of the non-refundable registration fee asprescribed in the Schedule of Fees (the “Registration Fee”).
2.	The date on which the Director has received the Request forMediation with all accompanying documentation and the complete
sum of the Registration Fee shall be treated as the date on which
the mediation has commenced. The AIAC will notify the parties ofthe date of commencement of the mediation.
3.	If the other party or parties reject(s) the Request for Mediation orif the AIAC does not receive a reply within 30 days from the date of
the AIAC’s written notice of the Request for Mediation under Rule2(1), the AIAC shall treat this as a rejection of the Request forMediation, and inform the party or parties initiating the mediationaccordingly.

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4.	Where the parties have agreed to a time limit for settling the
dispute pursuant to the AIAC Mediation Rules, the date on which
the mediator is appointed shall be the starting point of the agreed
time limit.

Rule 3 - Place and language(s) of the mediation
1.	Unless the parties have agreed otherwise, the mediation
proceedings shall be held in the AIAC premises or any othervenue proposed by the AIAC.
2.	In the absence of an agreement of the parties, the mediatorshall determine the language(s) in which the mediation shall be
conducted.

Rule 4 - Appointment of the mediator
1.	Unless otherwise agreed by the parties, the case shall be referred
to one mediator to be appointed by the Director. The Director shalltake into consideration any proposals made by the parties, thenature and circumstances of the dispute, the applicable law, andthe nationality and language of the parties.
2.	If the parties jointly nominate a person to act as a mediator, theAIAC shall confirm such nomination, subject to Rule 5 of the AIACMediation Rules.
3.	Unless otherwise agreed by the parties, where more than one
mediator is to be appointed, each party shall appoint an equal
number of mediators.

Rule 5 - Independence and impartiality of the mediator
1.	The mediators conducting mediation under the AIAC Mediation
Rules shall be and remain at all times independent and impartial.
2.	The mediators shall provide a signed and dated statement of
acceptance, independence, impartiality and availability to theparties and the Director, disclosing any circumstances that may
give rise to the mediator’s impartiality or independence.
3.	A mediator, from the time of appointment and throughout themediation, shall, without delay, disclose to the parties any
circumstances that may give rise to the mediator’s impartiality or
independence as they arise.
4.	No person may act as a mediator in any dispute in which that
person has any conflict of interest, save where the parties
have been notified in writing of such circumstances and havesubsequently expressly consented in writing to the appointmentof the mediator.

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Rule 6 - Replacement of the mediator
1.	The parties may, by written consent, agree to replace themediator at any time.
2.	Where a mediator is unable to perform their duties or fails toperform their functions, or is no longer accepted by the parties,
the Director shall release the mediator from appointment andappoint a new mediator in accordance with Rule 4 and Rule 5.
3.	Before the Director releases a mediator, the AIAC may give theparties and the mediator an opportunity to submit comments.

Rule 7 - Role of the mediator
1.	T h e m e d i a t i o n m a y b e c o n d u c t e d i n s u c h m a n n e r a s
considered appropriate by the mediator, taking into account thecircumstances of the case, the wishes of the parties and the needfor a speedy settlement of the dispute.
2.	The mediator shall not act as a representative or counsel of aparty or appear as a witness in any arbitral or judicial proceedings
or give advice to any person whatsoever in respect of a disputethat is the subject of the mediation. Unless the parties haveotherwise agreed in writing, the mediator shall not act as anarbitrator in any arbitral proceedings between the parties.

Rule 8 - Role of the parties
The mediator may communicate with the parties together or withany party separately, including private meetings and each party shallco-operate with the mediator. A party may request a private meetingwith the mediator at any time. The parties shall give full assistanceto enable the mediation to proceed and be concluded within the time
stipulated or agreed.

Rule 9 - Conduct of the mediation
1.	The mediator may, in consultation with the parties and taking into
account the circumstances of the dispute, utilise any technologicalmeans as considered appropriate, including to communicate withthe parties and to hold meetings remotely.
2.	When the mediator receives information concerning the
dispute from a party, the mediator shall keep such information
confidential, unless that party indicates that the information is
not subject to the condition that it should be kept confidential,
or expresses its consent to the disclosure of such information toanother party to the mediation.
3.	With the agreement of the parties and subject to Rule 12, themediator may consult one or more experts. Any such expert shallbe governed by Rule 4.

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Rule 10 - Timetable
The mediator shall consult with the parties to establish and/or
modify a timetable and to decide on any further details regarding theprocedure of the mediation.

Rule 11 - Authority and representation
The parties may be represented or assisted by persons of their choice.
Each party shall notify in advance the names and the role of such
persons to the mediator and the other party. Each party shall have fullauthority to settle or be accompanied by a person with such authority

Rule 12 - Confidentiality
1.	Unless otherwise agreed by the parties, all information relating
to the mediation, including, if relevant, the settlement agreement,
shall be kept confidential by those involved in the mediation,
except where disclosure is required by the law or as referred tounder Rule 13.3.
2.	The provisions of Rule 12 shall survive the termination of themediation and continue in full force and effect unless provided
otherwise by a signed agreement among all parties and the
mediator.

Rule 13 - Settlement agreement
1.	Once the parties agree on the terms of a settlement to resolve
all or part of the dispute through mediation, they should prepare
and sign a settlement agreement. If requested by the parties andif the mediator deems it appropriate, the mediator may provide
support to the parties in preparing the settlement agreement.
2.	Unless otherwise agreed by the parties, the mediator or the AIAC
may sign or stamp the settlement agreement or provide otherevidence that the agreement resulted from mediation.
3.	By signing the settlement agreement, the parties agree that thesettlement agreement can be used as evidence that it resultsfrom mediation, and that it can be relied upon for seeking relief
under the applicable law.

Rule 14 - Termination of the mediation
1.	The mediation shall be terminated:a)	by a settlement agreement between the parties;b)	by a declaration of the mediator to the parties to the effectthat further efforts of mediation are unlikely to lead to theresolution of the dispute; or

12ASIAN INTERNATIONAL ARBITRATION CENTRE (AIAC)c)	by a written request from a party to the mediator that themediation shall be terminated.
2.	Upon the termination of the mediation, the mediator shall notify
the AIAC.
3.	The AIAC and the mediator shall be entitled to payment forservices rendered up to the time of termination of the mediation.

Rule 15 - Costs and fees
1.	Unless otherwise agreed by the parties, the costs referred to inRule 15(3) are borne equally by the parties. All other expenses
incurred by a party shall be borne by that party.
2.	The mediator shall request that the AIAC finally determines the costsof the mediation. The AIAC shall finally determine the costs of themediation in accordance with the Schedule of Fees (Part II) in force
on the date of commencement of the mediation pursuant to Rule 2.
3.	The costs and expenses of the mediation shall include, but are
not limited to:a)	the fees of the mediator;b)	the cost of the venue hire, including meeting rooms,
breakout rooms, meals, translation fees, photocopying fees,
internet access, telephone and communication expenses,
administrative costs incurred under Rule 15(3)(d), and anyother costs reasonably and properly incurred in respect of the
conduct of the mediation;c)	any fees or costs set out above in respect of expert advice orexpert witnesses who attend or provide such advice with theconsent of the parties;d)	the administrative charges of the AIAC relating to the conductof the mediation fixed in accordance with the AIAC Mediation
Rules. Without limiting the foregoing, the costs of the AIAC
may include:		

i.	the registration fee; and		

ii.	any administrative costs.

4.	The parties are jointly and severally liable for costs and fees set
out in Rule 15(3) above.
5.	The parties are required to pay the costs and fees irrespective of
the outcome of the mediation.
6.	If the mediator is replaced prior to the termination of theproceeding, the parties shall pay the fees and expenses thatthe mediator incurred prior to termination, unless the mediator
decides otherwise.

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Rule 16 - Administrative assistance
The Director may arrange for translators, administrative assistance,
and/or other facilities in order to facilitate the mediation at therequest of the mediator and/or the parties.

Rule 17 - Exclusion of liability
1.	Neither the AIAC nor the mediator shall be liable to any party or
to any other participant in the mediation for any act or omission
in relation to or arising out of the mediation or in respect of or
arising out of any settlement reached in any mediation conducted,
unless such act or omission constitutes wilful misconduct orgross negligence.
2.	All statements, whether written or oral, made in the course of
the mediation shall not be relied upon to institute or maintain any
action for defamation, libel, slander or any related complaint.

Rule 18 - Schedule of fees
1.	The parties are free to agree with the mediator on the mediator’sfees. Unless otherwise agreed by the parties and mediator, theSchedule of Fees shall apply.
2.	The Schedule of Fees provides the fee scales for international anddomestic mediation.
3.	After the mediation has commenced in accordance with Rule 2,
the Director shall fix a provisional advance deposit in an amountintended to cover the mediator's fees and administrative costs.
Any such provisional advance deposit shall be paid by the parties
in equal shares and will be considered as a partial payment by theparties of any deposits of costs and fees fixed by the Director.
4.	Such provisional advance deposit shall be payable within 14 days
upon receiving the request from the AIAC.
5.	At any time during the course of the mediation, the Director may
require additional deposits to be paid by the parties on accountof the costs and fees. Any such additional sums requested by the
Director on account of the costs and fees shall be payable 14 days
after the receipt of the request from the AIAC.
6.	If any of the monies are not paid in full by both parties within 14
days after the receipt of the request from the AIAC, the Director
shall so inform the parties in order that one or another of them
may make the required payment.
7.	If any such payment is not made, the mediator, after consultation
with the Director and the parties, may order the suspension or
termination of the mediation.

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8.	The AIAC may apply the deposits towards the costs and expenses
incurred by the AIAC and the mediator in relation to themediation.
9.	Upon termination of the mediation, the AIAC shall render an
account to the parties of the deposits received and used andreturn any unexpended balance to the parties.

Rule 19 - Vacancy of the position of Director
In the event that the position of Director of the AIAC becomes vacant,the following officers, in order of precedence, shall assume thepowers of the Director under these Rules until the appointment of a
new Director:a) the Deputy Director;b) the Assistant Director; orc) the Head of Legal Services.

AIAC MEDIATION RULES

Part IISCHEDULES OF
FEES

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A. DOMESTIC MEDIATION
1. Registration fee	A non-refundable registration fee of RM150.00 is payable by the
party submitting the Request for Mediation.
2. Administrative costs
	The administrative costs for mediation shall be fixed at RM500.00
per case.
3. Mediator’s feei.	RM5,000.00 per day; andii.	RM600.00 per hour for review of documents and related
works.
4.	The fees payable to the mediator do not include any possible taxes
such as service tax, withholding tax, and other taxes or charges
applicable to the mediator’s fees. The parties have a duty to pay
any such taxes or charges; however, the recovery of any suchtaxes or charges is a matter solely between the mediator and theparties.
5.	The AIAC’s administrative costs payable include any possible taxes
such as service tax, withholding tax, and other taxes or charges
applicable to the AIAC's administrative costs. The parties have aduty to pay any such taxes or charges; however, the recovery of
any such taxes or charges is a matter solely between the parties.

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B. INTERNATIONAL MEDIATION1
1.	Registration fee	A non-refundable registration fee of USD150.00 is payable by the
party submitting the Request for Mediation.
2.	Administrative costs
	The administrative costs for mediation shall be fixed at USD500.00
per case.
3.	Mediator’s feei.	USD6,000.00 per day; andii.	USD750.00 per hour for review of documents and related
works.
4.	The fees payable to the mediator do not include any services tax
imposed by the government and other taxes or charges applicableto the mediator’s fees. The parties have a duty to pay any suchtaxes or charges; however, the recovery of any such taxes or
charges is a matter solely between the mediator and the parties.
5.	The AIAC’s administrative costs payable include any possible
taxes such as service tax, withholding tax, services tax imposedby the government and other taxes or charges applicable to the
AIAC’s administrative costs. The parties have a duty to pay any
such taxes or charges; however, the recovery of any such taxes or
charges is a matter solely between the parties.

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In an international mediation, the mediator’s fees and the AIAC administrative
costs can be paid in foreign currency other than USD, subject to the AIAC’sapproval.

MEDIATIONRULES 2023

ASIAN INTERNATIONALARBITRATION CENTRE {AIAC)(ESTABLISHED UNDER THE AUSPICES OF THE
ASIAN-AFRICAN LEGAL CONSULTATIVE ORGANIZATION)BANGUNAN SULAIMAN,
JALAN SULTAN HISHAMUDDIN,
50000 KUALA LUMPUR, MALAYSIA
T
F
E+603 2271 1000
+603 2271 1010
enquiry@aiac.world

www.aiac.world