THE Dewan Rakyat today passed the International Settlement Agreements Resulting from Mediation Bill 2025 by a majority voice vote after being debated by 11 Members of Parliament.
The Bill supports Malaysia’s ratification of the United Nations Convention on International Settlement Agreements Resulting from Mediation, better known as the Singapore Convention, which Malaysia signed in 2019.
Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M. Kulasegaran, when tabling the Bill, said the legislation marks a strategic step by the MADANI Government to strengthen alternative dispute resolution (ADR) mechanisms instead of relying solely on court proceedings.
According to Bernama, he noted that the Mediation Act 2012 (Act 749) currently applies mainly to domestic disputes, including accident insurance claims, family-related matters such as alimony and child custody, defamation claims, commercial contract disputes and intellectual property cases.
“Although the Act can be applied to international cases, settlement agreements reached through mediation are only binding on the parties and enforceable under contract law, with no direct enforcement mechanism,” he said.
Kulasegaran said the UN Convention provides a harmonised framework for the recognition and enforcement of international settlement agreements arising from mediation in commercial disputes.
Hence, the Bill, he said, aims to establish the necessary legal framework to fulfil Malaysia’s obligations under the convention and facilitate the enforcement of international settlement agreements in the country.
He said the move would promote mediation as an effective means of resolving cross-border commercial disputes. – February 11, 2026
