Malaysia

Free mediation scheme for B40 and M40 groups set for May rollout

Government initiative aims to ease legal cost burden and widen access to dispute resolution outside the courts

Updated 6 months ago · Published on 09 Apr 2026 6:52PM

Free mediation scheme for B40 and M40 groups set for May rollout
The initiative is being positioned as a practical alternative for resolving disputes, particularly at a time of economic pressure, Minister says - April 9, 2026

THE Government is preparing to introduce a free mediation service for lower- and middle-income groups, in a move designed to reduce reliance on costly court proceedings and improve access to justice.

The Malaysia Mediation Centre, established under the Legal Aid Department, is expected to begin offering the service as early as the first week of May, according to Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.

“The legal costs will be absorbed by the mediation centre. It is still in the planning stages, but we hope to launch it in the first week of May,” she said after attending the Symposium Seniman in Ampang.

The initiative is being positioned as a practical alternative for resolving disputes, particularly at a time of economic pressure, by allowing parties to settle disagreements without incurring legal fees.

Azalina said the centre would initially focus on contractual disputes involving sums of RM250,000 or less.

“We are introducing free mediation — what we call pro bono mediation — for contracts of RM250,000 and below. That will be the initial threshold we are working with,” she said.

She highlighted that existing court-based mediation requires formal legal action to be initiated before the process can begin, adding that the new mechanism would offer a more direct route.

“Currently, if you go to court for mediation, you must first file a case before mediation can take place. For now, however, the MMC can assist those with contractual disputes under RM250,000 to come to the centre for free mediation,” she added.The proposal, first raised last week, forms part of a broader cross-ministerial effort to support individuals and small businesses, including contractors, freelancers and

service providers such as videographers and event planners, who often face payment disputes but lack the resources to pursue legal action. - April 9, 2026

Spotlight

Malaysia

PH denies role in RoS suspension of Perikatan Nasional

Malaysia

Police hunt two suspects after BMW shot at in Sitiawan

By Alfian Z.M. Tahir

Malaysia

Mohamad Hasan turned away from Lendu nomination centre despite having EC pass

Business

Three Malaysian brands rank among Asean's 10 most valuable, led by Petronas

Malaysia

Melaka PRN: 79 candidates vying for 28 state seats

Malaysia

Melaka PRN: Adly Zahari faces three challengers in Bukit Katil

Malaysia

Shuhaily's return to police force remains a ministry matter, AGC says

You may be interested

Malaysia

Woman injured in suspected acid attack by boyfriend in Petaling Jaya

Malaysia

Anthony Loke: New trains expected to arrive over the next six months to two years

Malaysia

Govt weighs movement controls for Rohingya refugees, says Zahid

Malaysia

Some 687,697 voters to decide fate of Melaka’s 28 seats as nominations begin

Malaysia

Fahmi urges media companies to seek help before resorting to layoffs

By Alfian Z.M. Tahir

Malaysia

Adly takes nothing for granted in four-cornered Bukit Katil contest

Malaysia

Three arrested after man suffers broken leg in car-ramming over loan dispute

Malaysia

Parcel scams prompt new safeguards as Malaysia plans postal law reforms