The use of conciliation is at its infancy in Malaysia as with most countries in the South East Asia Region where the term conciliation simply implies a non-binding process where a neutral person attempts to facilitate and find an acceptable solution to a dispute between the parties. Although conciliation has been used in Malaysia for some time in the settlement of disputes in relation to family law and employment the concept of its use for the settlement of construction disputes is still considered foreign. The Industrial Relations Act 1967 and the Law Reform (Marriage and Divorce Act 1976 both refer to conciliation as recognised means to settle disputes.
Conciliation is being promoted by some quarters within Malaysia namely the Chartered Institute of Arbitrators, the Malaysian Institute of Arbitrators and the KLRCA who have published rules for conciliation. (more)