KUALA LUMPUR: Malaysia’s legal and institutional infrastructure must be developed alongside its physical and digital ones to support economic growth and sustain investor confidence, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
He said an effective dispute resolution system is a crucial component of the country’s economic infrastructure, enhancing the ease of doing business and facilitating the flow of foreign investment.
“Investors need more than sound policies and commercial opportunities. They need confidence that disputes will be handled fairly, efficiently and predictably, especially across borders.
“… our legal and institutional infrastructure must therefore be built alongside our physical and digital infrastructure,“ he said in his executive address at the Asian International Arbitration Centre (AIAC) Asia Alternative Dispute Resolution Week 2026, here today.
Also present were Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, Court of Appeal President Datuk Seri Abu Bakar Jais, Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M Kulasegaran, Sabah State Attorney-General Datuk Brenndon Keith Soh.
Fadillah, who is also Minister of Energy Transition and Water Transformation, said the need for effective dispute resolution would grow as priority sectors outlined in Budget 2027 translated into major commercial projects.
He said this is particularly relevant to large-scale infrastructure and utility projects involving the national electricity grid, renewable energy capacity, water security and flood mitigation.
“These are long-term investments, with complex contractual arrangements and many stakeholders. Effective ways of managing conflict are key to keeping them on track, before disputes can disrupt delivery,“ he said.
He said the long-term success of statutory adjudication frameworks, such as the Construction Industry Payment and Adjudication Act 2012 (CIPAA), relies on continuous institutional improvement and competency building.
“As the industry’s aspirations grow more complex and technically demanding, we must keep strengthening the competency of adjudicators, the efficiency of proceedings and the confidence of those who rely on this framework,” he said.
He also called on the AIAC to continue advancing CIPAA as a global benchmark for statutory adjudication.
“My aspiration is for it to remain not only an effective mechanism for Malaysia’s construction industry, but a model of statutory adjudication that other jurisdictions look to for guidance and inspiration,” he said.
On regional Alternative Dispute Resolution development, Fadillah said the AIAC would sign an agreement on Oct 19 to establish a branch office in Sarawak. The signing will be witnessed by Sarawak Premier Tan Sri Abang Johari Tun Openg and Azalina.
“This reflects our commitment to bringing institutional dispute resolution closer to businesses, industries and communities in Sarawak and the wider Borneo region.
“These partnerships should be strengthened through joint initiatives and greater awareness of ADR. Our objective is not simply to establish another institutional presence. It is to build a stronger, more accessible and interconnected ADR ecosystem that serves local needs,” he said.
