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

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