Malaysia’s rich and diverse culture and history is made even more resplendent with the beauty that is Borneo! With Peninsula Malaysia having just concluded its Merdeka celebrations in August, Malaysians now look forward to an eclectic and diverse celebration that is, Malaysia Day, commemorating the coming together of Sabah and Sarawak with Malaya, and the establishment of a new nation and the Malaysia as we know her today. The formation of Malaysia on 16th September 1963 witnessed amendments to the Federal Constitution to include special provisions that are only applicable to the states of Sabah and Sarawak. Some federal Acts of Parliament apply to these states differently on a number of matters, creating two separate local jurisdictions of the court – one, for Peninsular Malaysia and another, for East Malaysia. In view of these differences in local jurisdiction, arbitration has become a very attractive form of alternative dispute resolution (ADR), if not the preferred method of dispute resolution for cross-border transactions in Malaysia, especially for construction disputes. Where domestic construction disputes are concerned, the Construction Industry Payment and Adjudication Act 2012 sees it being the primary mechanism of redress.

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