Malaysia pushes ASEAN to adopt ADR for cross-border insolvency disputes

KUALA LUMPUR: Malaysia has called on ASEAN member states to implement Alternative Dispute Resolution (ADR) for settling cross-border insolvency disputes instead of relying solely on court proceedings.

Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said highlighted mediation, arbitration and adjudication as faster and more cost-effective ADR methods.

“ADR can be jointly implemented by ASEAN countries despite differences in legal systems between civil and common law jurisdictions,” she said during a press conference after opening the ASEAN Legal Forum 2025.

Azalina explained that ADR reduces legal expenses compared to cross-border court cases, where varying legal systems and high fees create barriers.

She noted that ADR maintains privacy by involving only the claimant, defendant and mediator, unlike public court proceedings.

“For sensitive matters like copyright disputes, ADR keeps case details confidential rather than exposing them in open court,” she added.

The minister expressed hope that the forum would inspire ASEAN law ministers to adopt ADR policies to boost regional economic growth.

Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M. Kulasegaran and Legal Affairs Division director-general Datuk Zamri Misman attended alongside international representatives.

The three-day event featured 58 speakers across 15 sessions, with over 300 participants discussing ADR, commercial law reform and human rights. – Bernama

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