Govt to offer free mediation for contract disputes valued under RM250,000

9 Apr 2026, 11:56 AM
Govt to offer free mediation for contract disputes valued under RM250,000

KUALA LUMPUR, April 9 — The government will offer a free mediation service for legal disputes involving all types of contracts valued under RM250,000.

Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said the service should start in May.

She said those wishing to use the pro bono service must first submit their legal dispute to the Asian International Arbitration Centre (AIAC).

“This assistance is provided as mediation under the current system can only take place after the parties involved in legal disputes have filed their cases in court.

“We hope this service will help them resolve disputes through the mediation process, with legal costs being borne by AIAC,” she told reporters after attending the Artiste Symposium here today.

Officiated by Communications Minister Datuk Fahmi Fadzil, the symposium was also attended by his deputy Teo Nie Ching, Communications Ministry secretary-general Datuk Abdul Halim Hamzah, and National Film Development Corporation (FINAS) chairman Datuk Hans Isaac.

Azalina said in her speech that mediation is an alternative dispute resolution mechanism introduced under the Legal Aid and Public Defence Bill 2025 as part of ongoing legal reforms.

She said the approach is faster, more flexible and more cost-effective compared with litigation and offers significant benefits to all parties, including artistes facing contractual, copyright or commercial disputes, without them having to bear high legal costs.

She added that this is in line with the government’s stance that justice is accessible to all.

Meanwhile, Azalina said the number of bankruptcy cases discharged in 2025 had exceeded the target at 204,000 cases, higher than the 176,000 discharged in 2024.

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