Bicam rules help fill arbitration gap
Published on: Sat, Jul 26, 2025
By: Larry Ralon Text Size: Chin said the launch underscores Bicam's commitment to innovation and relevance in the dispute resolution space. Kota Kinabalu: The Borneo International Centre for Arbitration and Mediation's (Bicam) Expert Determination Rules 2025, the first of its kind in Malaysia developed by an established arbitration centre, promises to fill a crucial gap in the country's alternative dispute resolution (ADR) framework. Bicam Council Member Datuk Roger Chin, who is also the Bicam Global ADR Horizons 2025 co-organising chairman, said the centre was proud with the launch of the rules. 'This wasn't done for headlines. It was done because a need was clear, and unmet,' he said at the conference held at The Magellan Sutera Resort on Thursday. Framing the rules as a practical solution for technical and time-sensitive disputes, Chin stressed that expert determination serves a distinct and increasingly relevant role in today's legal and commercial landscape. 'Not all disputes belong to court. Not every matter benefits from arbitration. Sometimes, what parties need is technical clarity, delivered quickly and decisively,' he said. He added that sectors such as construction, infrastructure, valuation and energy often require swift and specialised resolution, where traditional litigation or arbitration may be too costly or cumbersome. 'Expert determination is not new. But it's been underused, underdeveloped and undervalued, until now,' he said. 'These new Bicam Rules offer a credible, fit-for-purpose alternative: professional, adaptable, final.' Chin said the launch underscores Bicam's commitment to innovation and relevance in the dispute resolution space. 'More than anything, these rules show what we believe Bicam must be, a platform not just for dialogue, but for delivery,' he said. 'To be nimble. To be useful. To fill the gaps that others overlook.' He emphasised that true leadership in the ADR field is about foresight and responsiveness. 'Leadership isn't about being the oldest name in the room. It's about being the one willing to move first when something needs doing,' he said. The launch of the Expert Determination Rules is just one of several forward-looking initiatives featured in this year's Bicam Global ADR Horizons 2025 programme. Chin said the three-day event would explore some of the most pressing and practical challenges facing the dispute resolution community today, including how Environmental, Social and Governance (ESG) concerns are reshaping risk and accountability; the ethical and strategic integration of generative AI into arbitration; the enforceability and design of court-annexed mediation frameworks; and whether the global ADR community is ready to embrace faster, leaner and less complex procedures. 'These are not theoretical exercises, they're real-world challenges for those building bridges, writing contracts, closing deals and solving disputes in real time, under real pressure.' Introduction of Bicam Expert Determination Rules marks a significant step forward in diversifying and strengthening the ADR tools available in Malaysia, especially in Sabah. Coupled with Bicam's growing portfolio, which includes arbitration, mediation and training, the new rules position the centre as a dynamic and solutions-driven institution. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Express
2 days ago
- Daily Express
Sabah going big into tuna
Published on: Thursday, July 31, 2025 Published on: Thu, Jul 31, 2025 By: Larry Ralon Text Size: Hajiji (centre) with other dignitaries at the signing of the MoA between DBKK and Alpha Ocean Resources Berhad. Kota Kinabalu: Sabah is on the right track to becoming the region's leading deep-sea fishing hub, thanks to its various strategic advantages, said Chief Minister Datuk Seri Hajiji Noor. According to him, the State is not only located along the international tuna migration route but also boasts sheltered natural harbours and proximity to major producers such as Indonesia, the Philippines and Papua New Guinea. 'We possess all the prerequisites, in terms of location, resources, infrastructure and policy support, to drive Sabah as a centre for the landing, processing and export of deep-sea fishery products at international standards,' he said during the signing ceremony of a Memorandum of Understanding (MoU) between City Hall (DBKK) and Petco Trading Labuan Company Ltd, as well as a Memorandum of Agreement (MoA) between DBKK and Alpha Ocean Resources Berhad (AORB) at Pacific Sutera Hotel, Wednesday. Hajiji said under the MoA, AORB will invest RM360 million to develop a European Union (EU)-standard port in Kota Kinabalu, specifically for the landing of tuna and other deep-sea fishery products. He said the project is expected to be completed within 18 months and will create over 1,000 jobs across the industry value chain. 'This port will comply with the EU's strict standards, including Hazard Analysis and Critical Control Points (HACCP), traceability systems, monitoring of Illegal, Unreported and Unregulated (IUU) fishing and comprehensive food safety requirements. 'With this facility, we will be able to tap into premium export markets, which have so far remained inaccessible due to the lack of suitable infrastructure,' he stressed. He said Malaysia's participation in the Western & Central Pacific Fisheries Commission (WCPFC) will enable the new port to serve as an authorised landing base for registered fishing vessels from around the world. 'With projections of 1,000 vessels a year, each carrying an average of 50 tonnes of catch, Sabah has the potential to land 50,000 tonnes of tuna annually, generating an estimated RM1.8 billion in economic value,' he said. He added that the economic benefits will not be limited to the catch alone, but will extend to various supporting sectors such as ice supply, bunkering services, food and beverage and technical services. At the same time, Hajiji emphasised that the development of this industry will not overlook the welfare of local fishing communities. An inclusive development model will ensure the participation of coastal fishermen in downstream value-added activities. 'We will continue to uphold sustainable environmental, social and governance (ESG) practices – protecting the environment, communities and governance – to ensure the continuity of marine ecosystems and the economic wellbeing of our people,' he said. At the same event, DBKK also signed a MoU with Petco Trading Labuan Company Ltd to develop a biogas energy complex at Kayu Madang landfill site. The project will convert methane gas from solid waste into two megawatts of green electricity. 'This energy will directly benefit the manufacturing sector at Kota Kinabalu Industrial Park (KKIP). It is a prime example of a circular economy approach, where waste from one sector becomes an energy source for another,' he said. Hajiji said both initiatives align with Sabah Blue Economy agenda, which emphasises sustainable development, value addition in the fisheries industry and the transition to clean energy. 'The successful attraction of these investments reflects strong investor confidence in Sabah's economic prospects. I am confident that the synergy between DBKK, the private sector and the State Government will accelerate economic growth and create more job opportunities for the people,' he said. He also expressed appreciation to DBKK for its ongoing efforts in driving city development and to both companies for choosing Sabah as their strategic investment destination. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
2 days ago
- Daily Express
Sanctions making arbitration difficult
Published on: Thursday, July 31, 2025 Published on: Thu, Jul 31, 2025 By: Sherell Jeffrey Text Size: L/R: Steve, Dutsadee, Kevin, Ning and Fei. Kota Kinabalu: International arbitration is faced with challenges due to sanctions and corruption concerns, adding risks, costs and complexity to global trade dispute resolution. 'Arbitration is now a clash of international law, policy and economic law. It is more than just arbitration procedures that we need to know,' said Beihai Asia International Centre (Singapore) Founding President cum Executive Director Prof Steve Ngo. Steve, a recognised International Arbitrator, said this at the recent Borneo International Centre for Arbitration and Mediation (Bicam) Global alternative dispute resolutions (ADR) Horizons conference where he moderated Session 7's Navigating Impact of Sanctions and Corruption Allegation in Arbitration. What Is International Arbitration and why should we care? Before diving into the problems, it is important to understand what international arbitration is. Think of it as hiring a neutral referee when two companies from different countries have a business disagreement. Instead of going to court which can be slow, expensive and potentially biased toward the local company, businesses agree to let a neutral expert (called an arbitrator) hear both sides and make a binding decision. It is private, usually faster than court and the decision can be enforced in most countries around the world through international treaties. For decades, this system has been the backbone of international trade, giving companies confidence to do business across borders knowing they have a fair way to resolve disputes. But now, as the experts at the Bicam conference notes, that confidence is being shattered. Pisut & Partners' Dutsadee Dutsadeepanich, a major legal firm in Thailand, spoke about how international sanctions are crippling the arbitration system. 'Since the Russia-Ukraine conflict began in 2022, sanctions imposed by the United States, European Union and United Kingdom have created a maze of obstacles that make conducting fair arbitrations nearly impossible when certain parties are involved,' said Dutsadee who is also a member of Thailand's parliament. 'Arbitration is no longer straightforward for sanctioned parties,' she said, pointing out how even basic steps like paying arbitration fees become impossible when banks refuse to process transactions involving sanctioned companies. 'The problem is far more than just payment issues. This is a chilling effect where experienced arbitrators, the neutral referees' businesses rely on, simply refuse to take cases involving sanctioned parties. 'Why? They are worried about getting paid, damaging their reputations or even breaking laws in their home countries. 'For example, EU-based arbitrators may be prohibited from working on a case involving a Russian entity without special government permission,' she said, adding that this destroys one of arbitration's key advantages, which is the ability for parties to choose arbitrators they trust. The same problems face legal representation. 'Law firms from countries imposing sanctions often need government authorisation to represent sanctioned parties, while frozen bank accounts can make it impossible for sanctioned companies to pay their lawyers. The result? A fundamentally unfair playing field,' she said. Dutsadee cited examples of RCA (a Russian company) and Linde (a German company) fighting over a natural gas project. 'What should have been a single, clean arbitration turned into a messy battle across multiple countries and courts, exactly what the arbitration system was designed to prevent,' she said. Even worse, she noted, when arbitrations do proceed and decisions are made, there is no guarantee they can be enforced if sanctioned parties are involved. Courts may simply refuse to enforce decisions on public policy grounds. On corruption, Dutsadee said Thailand's challenge is that corruption issues often do not surface during the arbitration itself, but later when trying to enforce decisions. 'In Thailand, we have a lot of corruption related to arbitration, but at the stage of enforcement, especially when it involves contracts between private companies and government entities,' she said. Her prediction for the future? A shift toward arbitration centres in neutral countries like Singapore and Hong Kong as companies seek to avoid sanctions-related complications. Legal Solutions LLC (Singapore) Director Kevin Tan who works as both a lawyer and arbitrator, offered insights from Singapore, one of the world's top arbitration destinations. 'Singapore has built its reputation on being business-friendly while maintaining strict standards. We have zero-tolerance policy for corruption. As many of you would know, this includes tickets for concerts and the like,' Kevin said, pointing out how seriously the city-state takes these issues. He said corruption in arbitration comes in two flavours, namely corruption related to the original business deal (like bribing someone to get a contract) and corruption of the arbitration process itself (like bribing the arbitrator). 'Both can destroy an arbitration's validity,' he said. He cited a case study involving a Dutch investor and the government of Laos over gambling and casino investments. 'When corruption allegations surfaced, the arbitrators did not just ignore them, they conducted a thorough investigation using banking records, accounting reports, emails and witness testimony. 'The tribunal found that allegations of corruption were made out on balance of probabilities. 'When the losing party tried to challenge this decision in Singapore's courts, the judges refused and made a strong statement that arbitrators have a public duty to investigate corruption, regardless of what the parties might prefer. 'This sends a message that even in Singapore's pro-business environment, courts would not hesitate to intervene when corruption is involved,' he said. On sanctions, Kevin pointed out how Singapore follows United Nations sanctions while trying to be practical. He cited a recent case where Singapore courts granted a conditional delay when a company claimed US sanctions prevented it from paying an arbitration award. 'This shows that Singapore courts do not automatically enforce sanctions, but will consider them practically if compliance would make payment impossible for a party,' he said. He pointed out three worrying trends, namely companies are choosing different locations for their arbitrations when sanctions might be involved, arbitration centres are doing much more background checking and lawyers are having to become sanctions experts just to draft contracts. 'Law firms now need dedicated sanctions teams to protect their clients and their own reputations, a cost that ultimately gets passed on to businesses and consumers,' he said. Hui Zhong Law Firm Managing Partner Ning Fei from a China law firm, shared his perspective on how seriously corruption can be taken in arbitration. 'China operates what may be the world's strictest anti-corruption system for arbitration. The rules are so tough they make other countries look permissive by comparison,' he said. 'Chinese arbitration laws explicitly ban arbitrators from having private meetings with parties, receiving gifts or accepting any form of entertainment. 'In China, such practices are normally not allowed. It is quite strict,' Ning Fei said, referring to informal communications that are routine in other countries. But here is the kicker, China imposes criminal penalties on corrupt arbitrators. 'China is probably one of the few countries that impose criminal liability for arbitrators. If you take bribes from parties or have personal interest in a case, you may be sentenced from three to seven years in jail,' Ning Fei said. He cited examples of arbitrators being caught and banned from practice, including one who was followed by a suspicious party and photographed having dinner with the opposing side and another who was discovered making private phone calls to one party. 'Unlike other countries where arbitration centres take a hands-off approach, Chinese institutions actively monitor arbitrator behaviour through secretariat departments that can observe proceedings and participate in internal discussions. 'The secretary department knows well about arbitrators, who are good people, who may be biased. 'They have internal discussions and reviews. You can see regularly every couple of years, some people join the list, some people are released,' he said. He also pointed out that China has also had to deal with sham arbitrations, namely fake proceedings where parties collude to create enforceable court orders without genuine disputes. He cited examples of cases where companies essentially sued themselves or created artificial disputes just to get official-looking decisions they could enforce elsewhere. On sanctions, Ning Fei acknowledged the political complexity while noting that enforcement depends heavily on specific circumstances and which courts are involved. 'Interestingly, China's own retaliatory sanctions have not had much practical impact on business or arbitration enforcement,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
2 days ago
- Daily Express
Sabah going big into tuna. RM1.8 billion revenue yearly; 1,000 jobs from deep-sea fishery products
Published on: Thursday, July 31, 2025 Published on: Thu, Jul 31, 2025 By: Larry Ralon Text Size: Hajiji (centre) with other dignitaries at the signing of the MoA between DBKK and Alpha Ocean Resources Berhad. Kota Kinabalu: Sabah is on the right track to becoming the region's leading deep-sea fishing hub, thanks to its various strategic advantages, said Chief Minister Datuk Seri Hajiji Noor. According to him, the State is not only located along the international tuna migration route but also boasts sheltered natural harbours and proximity to major producers such as Indonesia, the Philippines and Papua New Guinea. 'We possess all the prerequisites, in terms of location, resources, infrastructure and policy support, to drive Sabah as a centre for the landing, processing and export of deep-sea fishery products at international standards,' he said during the signing ceremony of a Memorandum of Understanding (MoU) between City Hall (DBKK) and Petco Trading Labuan Company Ltd, as well as a Memorandum of Agreement (MoA) between DBKK and Alpha Ocean Resources Berhad (AORB) at Pacific Sutera Hotel, Wednesday. Hajiji said under the MoA, AORB will invest RM360 million to develop a European Union (EU)-standard port in Kota Kinabalu, specifically for the landing of tuna and other deep-sea fishery products. He said the project is expected to be completed within 18 months and will create over 1,000 jobs across the industry value chain. 'This port will comply with the EU's strict standards, including Hazard Analysis and Critical Control Points (HACCP), traceability systems, monitoring of Illegal, Unreported and Unregulated (IUU) fishing and comprehensive food safety requirements. 'With this facility, we will be able to tap into premium export markets, which have so far remained inaccessible due to the lack of suitable infrastructure,' he stressed. He said Malaysia's participation in the Western & Central Pacific Fisheries Commission (WCPFC) will enable the new port to serve as an authorised landing base for registered fishing vessels from around the world. 'With projections of 1,000 vessels a year, each carrying an average of 50 tonnes of catch, Sabah has the potential to land 50,000 tonnes of tuna annually, generating an estimated RM1.8 billion in economic value,' he said. He added that the economic benefits will not be limited to the catch alone, but will extend to various supporting sectors such as ice supply, bunkering services, food and beverage and technical services. At the same time, Hajiji emphasised that the development of this industry will not overlook the welfare of local fishing communities. An inclusive development model will ensure the participation of coastal fishermen in downstream value-added activities. 'We will continue to uphold sustainable environmental, social and governance (ESG) practices – protecting the environment, communities and governance – to ensure the continuity of marine ecosystems and the economic wellbeing of our people,' he said. At the same event, DBKK also signed a MoU with Petco Trading Labuan Company Ltd to develop a biogas energy complex at Kayu Madang landfill site. The project will convert methane gas from solid waste into two megawatts of green electricity. 'This energy will directly benefit the manufacturing sector at Kota Kinabalu Industrial Park (KKIP). It is a prime example of a circular economy approach, where waste from one sector becomes an energy source for another,' he said. Hajiji said both initiatives align with Sabah Blue Economy agenda, which emphasises sustainable development, value addition in the fisheries industry and the transition to clean energy. 'The successful attraction of these investments reflects strong investor confidence in Sabah's economic prospects. I am confident that the synergy between DBKK, the private sector and the State Government will accelerate economic growth and create more job opportunities for the people,' he said. He also expressed appreciation to DBKK for its ongoing efforts in driving city development and to both companies for choosing Sabah as their strategic investment destination. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
