Mediation In
Putrajaya, Malaysia

State Laws

As a federal territory, Putrajaya does not have its own state-level legislation for mediation. The territory follows the federal Mediation Act 2012 (Act 746) which governs mediation throughout Malaysia. The Act provides the comprehensive legal framework for conducting mediation, including provisions for mediated settlement agreements, confidentiality requirements, and the role and qualifications of mediators. Putrajaya, being the federal administrative capital where the federal government and judiciary are headquartered, is where federal mediation policies are formulated and implemented. All disputes in Putrajaya are resolved under federal law, with no territorial legislation existing separate from national statutes. The Legal Aid Bureau (Jabatan Bantuan Guaman), which provides court annexed mediation services, is headquartered in Putrajaya at the Prime Minister's Department building.

Licensing Requirements

Mediator accreditation in Malaysia is regulated through the Malaysian International Mediation Centre (MIMC) which operates under the Bar Council. The Mediation Act 2012 specifies that only persons possessing relevant qualifications may serve as mediators, though the Act itself does not establish a mandatory licensing regime. Professional accreditation is managed through voluntary schemes administered by MIMC. MIMC maintains accreditation and empanelment rules for mediators, with dissatisfied mediators able to apply to the Bar Council for review of accreditation decisions. Judges and court officers conduct judge-led mediation as part of court connected processes under Practice Direction No. 4 of 2016. Given Putrajaya's role as the administrative capital, many accredited mediators and legal professionals practising in mediation are based in or near the federal territory. No specific territorial licensing requirements exist beyond federal standards, as Putrajaya operates entirely under federal regulatory frameworks.

Local Court Systems

Putrajaya is home to the Federal Court of Malaysia, the highest court in the country, located at the Palace of Justice in Precinct 3. The Federal Court deals with constitutional matters and hears appeals from the Court of Appeal and High Courts. The Court of Appeal also sits in Putrajaya, determining appeals from the High Courts. Although Putrajaya itself primarily houses the superior courts, subordinate courts (Sessions Court and Magistrates Court) serving the federal territory operate through the nearby Selangor court system or specialised federal court arrangements. The court hierarchy follows the federal structure with the Federal Court at the apex, followed by the Court of Appeal, High Court, Sessions Court, and Magistrates Court. The High Court has unlimited monetary jurisdiction, Sessions Court handles civil claims up to RM1,000,000 with unlimited jurisdiction for motor vehicle accidents and landlord-tenant distress cases, and Magistrates Court deals with civil claims below RM100,000. All courts in Putrajaya follow the federal Rules of Court 2012 and apply Malaysian federal law. As a federal territory, magistrates are appointed by the Yang di-Pertuan Agong upon advice rather than by state governments.

Fee Structures

Mediation fees in Malaysia are not standardised by statute and vary depending on the mediation provider. For court annexed mediation through the Legal Aid Bureau headquartered in Putrajaya, services are provided free of charge to eligible assisted persons and opponents. Private mediation through MIMC or other accredited mediators typically operates on a fee basis, with rates negotiated between the parties and the mediator. The Malaysian Courts Fees, Costs & Solicitors' Remuneration & Fees Act 1951 (Act 209) governs court fees and legal costs generally, though specific mediation fee schedules are not prescribed. Given Putrajaya's status as the federal capital and the location of many high-level commercial and constitutional disputes, mediation fees for complex federal matters may be substantial. Parties typically agree on fee structures in their mediation agreements, which may include hourly rates, daily rates, or success-based arrangements. Legal representation fees during mediation follow the Solicitors' Remuneration Order unless parties agree otherwise. For matters involving federal government bodies, special fee arrangements may apply.

Bar Association Rules

The Malaysian Bar Council regulates the legal profession including mediation practice through the Legal Profession Act 1976 and the Legal Profession (Practice and Etiquette) Rules 1978. The Bar Council maintains a Mediation Committee responsible for the proper functioning and implementation of MIMC's objectives and services. Advocates and solicitors are permitted to carry out mediation work and may serve as mediators if accredited through MIMC. The Bar Council's Rules and Rulings provide guidance on professional conduct, including requirements for law firm signage and practice management. Lawyers participating in mediation must adhere to professional ethics and confidentiality obligations. The Bar Council has issued practice directions encouraging the use of mediation as an alternative dispute resolution mechanism. Given Putrajaya's role as the federal capital, the Bar Council maintains close coordination with federal judicial authorities on mediation policy development. For Sharia law matters, separate rules apply under the federal Islamic law administration coordinated through the Prime Minister's Department. MIMC regularly engages with judicial leadership in Putrajaya to enhance pre trial mediation programmemes.

Regional Dispute Patterns

Federal government administrative disputes and challenges to government decisions, Constitutional matters and federal law interpretations, Civil service and public sector employment disputes, Federal statutory interpretation cases, Contractual disputes involving federal government agencies and ministries, Appeals from lower courts across Malaysia in various civil and criminal matters, Administrative law challenges to federal regulatory decisions

Legal Framework

Malaysia has a well developed legal framework for ADR with specific laws and guidelines for different ADR mechanisms. The Arbitration Act 2005 is the principal law governing arbitration in Malaysia, providing the legal framework for arbitration proceedings including formation of arbitration agreements, selection of arbitrators, conduct of arbitration, and enforcement of arbitral awards. The Act is based on the UNCITRAL Model Law on International Commercial Arbitration, making Malaysia a pro-arbitration jurisdiction especially for international disputes. The Mediation Act 2012 is a significant piece of legislation that governs mediation in Malaysia, providing a structure for mediation processes particularly in commercial disputes. The Act allows for court referred mediation and establishes procedures for mediators and the mediation process. The Industrial Relations Act 1967 governs labor disputes, establishing the Industrial Court and mandating use of conciliation and arbitration for resolving employment-related disputes. The Courts (Alternative Dispute Resolution) Rules 2014 provide the framework for use of ADR in Malaysian civil courts, allowing courts to refer parties to mediation or arbitration if appropriate. The Arbitration (International Investment Disputes) Act 1966 governs international investment disputes and allows for recognition and enforcement of arbitral awards related to investment disputes.

While Malaysia operates under this legal framework, The Olive Branch's remote mediators bypass local court backlogs by providing swift, confidential, and mutually agreed-upon resolutions online.

Court System

Courts actively promote ADR through the Courts (Alternative Dispute Resolution) Rules 2014. Under these rules, courts can refer parties to mediation or arbitration if they believe it is appropriate for resolving the dispute. Court-annexed mediation is common, with courts having set up mediation programmes where parties can refer their cases for mediation before proceeding to trial. The Malaysian Mediation Centre (MMC) and the Bar Council's Alternative Dispute Resolution Centre (ADR Centre) are prominent institutions that provide mediation and conciliation services in conjunction with the court system. The Industrial Relations Act 1967 establishes conciliation procedures through the Director General of Industrial Relations before disputes are escalated to the Industrial Court.

Mediator Regulations

The Mediation Act 2012 provides a structure for mediation processes and establishes procedures for mediators. Professional mediators are available through institutions like the Malaysian Mediation Centre (MMC) and the Bar Council's ADR Centre. The Malaysian Bar's ADR Centre and other private institutions offer ADR services including mediation and arbitration. Specific training requirements or accreditation standards for mediators are not detailed in available sources, but the Act establishes procedures for the mediation process.

Cultural Approach

ADR is well established and widely used in commercial settings to preserve business relationships. The legal framework reflects a preference for ADR as faster and less expensive than traditional litigation, particularly in commercial settings where preserving business relationships is important.

Typical Costs

Costs vary by institution and case complexity but generally faster and less expensive than litigation. Professional mediator fees generally range from MYR 300-1,000 per hour for commercial mediation. MMC and Bar Council's ADR Centre provide institutional fee schedules. AIAC provides arbitration services. Court-annexed mediation programmes available.