S’pore, Malaysia ink pacts to promote alternative ways for firms to resolve legal disputes

As trade and cross-border investment between Singapore and Malaysia continue to grow, both countries have pledged to encourage firms to resolve more disputes out of court.

They inked two pacts on June 3 for the two sides to promote the use of alternative dispute resolution (ADR).

Through their dispute resolution institutions, the neighbours will also deepen collaboration in the ADR field by jointly organising and participating in each other’s events, and sharing information, said Singapore’s Law Ministry in a statement.

In a legal dispute, ADR typically involves mediation, arbitration, conciliation or neutral evaluation by a third party – as opposed to going to trial.

As cross-border trade advances, collaboration between dispute resolution institutions becomes increasingly important, said Minister for Law and Second Minister for Home Affairs Edwin Tong in the statement.

“These partnerships will create more opportunities for exchanges, knowledge-sharing and joint initiatives, while strengthening the region’s dispute resolution ecosystem,” he said.

Tong and Malaysia’s Minister in the Prime Minister’s Office (Law and Institutional Reform) Azalina Othman Said witnessed the signing of the two memorandums of understanding.

One was between the Singapore International Arbitration Centre and the Asian International Arbitration Centre (AIAC) in Kuala Lumpur, while the other was between the Singapore International Mediation Centre and AIAC.

These pacts build on discussions between the two ministers on deepening bilateral cooperation in dispute resolution services. They had met on the sidelines of the Commonwealth Law Ministers Meeting in Fiji in February 2026.

“Malaysia is Singapore’s closest neighbour and one of our most important partners,” said Tong.

“(The pacts) reflect the strong ties between our legal and dispute resolution communities, and our shared commitment to providing businesses and investors with trusted, efficient and effective avenues for resolving disputes.”

Singapore’s Law Ministry has signed similar memorandums of understanding with counterparts around the world, and the Republic’s ADR institutions have collaborated with their foreign counterparts, trade bodies and law schools, among others, to exchange knowledge and best practices.

During the June 3 meeting, both ministers reaffirmed the “close and enduring relationship” between Singapore and Malaysia.

They also discussed areas of mutual interests, including the Johor-Singapore Special Economic Zone, the Singapore Convention on Mediation and strengthening people-to-people ties, said the Law Ministry.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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