DEPUTY Prime Minister II and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof has called on stakeholders across government, law, and industry to seize what he described as Malaysia’s “Kairos moment” — a critical opportunity to redefine its role as a global hub for Alternative Dispute Resolution (ADR).
Delivering his keynote address at the Asia ADR Week 2025, held at the Asian International Arbitration Centre (AIAC), Fadillah said the convergence of institutional reform, legal innovation and regional cooperation had created a pivotal juncture for the country.
“The ancient Greek word ‘Kairos’ embodies a profound truth — that within every era lies a defining moment when vision, leadership, and conviction converge. For Malaysia, this is our Kairos moment in ADR,” he said.
Themed *“Kairos: Seizing the ADR Moment”*, the annual event brought together leading legal minds, government officials, and industry experts from across Asia and beyond. Fadillah described the occasion as more than a conference, saying, “It is a call to action, a celebration of progress, and a commitment to justice that is fair, accessible, and enduring.”
Highlighting Malaysia’s readiness, he pointed to its strategic location, multicultural society, and pro-arbitration legal environment as key strengths. “Malaysia bridges East and West, offering neutrality, cultural fluency, and legal sophistication,” he added.
The Deputy Prime Minister praised the AIAC’s recent reforms, including the introduction of the AIAC Suite of Rules 2026 and the establishment of the AIAC Court of Arbitration. These changes, he said, reflect a renewed commitment to independence, procedural excellence, and global best practices.
He also recognised the role of recent legislative advancements, namely the Arbitration (Amendment) Act 2024 and the Construction Industry Payment and Adjudication Act (CIPAA) (Amendment) Act 2024, which collectively enhance Malaysia’s dispute resolution framework.
Fadillah, who had previously served as Minister of Works during the initial rollout of CIPAA, reflected on its origins. “When CIPAA was first introduced, it was born out of necessity. Delayed payments disrupted projects and livelihoods. What began as a domestic solution has now become an international model admired for its efficiency, predictability, and balance.”
In his current role overseeing the PETRA portfolio, he underlined how sectors such as energy, water, and infrastructure increasingly rely on ADR due to their complexity and multi-stakeholder involvement. “Energy fuels progression, but justice sustains it,” he said. “ADR ensures that development flows like water — continuously, equitably, and purposefully.”
Fadillah also pointed to a recent milestone at the ASEAN Law Forum 2025, where all ten ASEAN Member States adopted a joint statement on advancing arbitration and mediation frameworks. He affirmed Malaysia’s leadership role as ASEAN Chair in 2025 in harmonising regional legal practices and institutional cooperation.
“The transformation of ADR in Malaysia is not merely administrative — it is strategic, visionary, and nation-shaping,” he said. “By embracing ADR, we foster a culture of understanding that transcends borders and boundaries.”
In closing, he urged public and private institutions alike to honour their commitment to ADR reform with action. “Make Malaysia the foremost destination for arbitration. The gains we achieve together will always exceed what we pursue alone.”
He also announced the forthcoming establishment of AIAC Sarawak, a new milestone made possible through collaboration with the Sarawak Government.
“As we look forward to the AIAC’s Golden Jubilee in 2028, let us remember — justice is not a destination, but a journey of reform, reflection, and renewal,” he concluded. “Let us make Malaysia a symbol of fairness, a home of peace, and a beacon of sustainable justice for the world.” - October 9, 2025
