Asian International Arbitration Centre (AIAC), formerly known as Kuala Lumpur Regional Centre for Arbitration (KLRCA), is Malaysia’s leading provider of the best institutional support in matters of domestic and international arbitration and other alternative dispute resolution litigations. The most common form of alternative dispute resolution is arbitration. There are two types of arbitrations, seat of arbitration (institutional arbitration) and ad hoc arbitration.
Ad Hoc Arbitration-
Ad hoc arbitration is a form of arbitration in which the conflicting parties do not choose a modus operandi, the law of an institution, for the arbitration. While this form of arbitration does offer more flexibility to the parties in question, it does not offer much when it comes to external support. Ad hoc arbitration is more time efficient than institutional arbitration but it can run into hindrances if the conflicting parties run into difficulties with the appointment or conduct of the arbitration tribunal. An ad hoc arbitration allows for edits in the proceedings governing laws in the case of a dispute arising. In some rare cases the proceedings governing laws are changed if the need arises.
While it is a widely held belief that an ad hoc arbitration might be less expensive than an institutional arbitration, that is not always the case. Ad hoc arbitrations are carried out by people who are not lawyers and this may lead to misinformed decisions in cases of international commercial arbitrations. Sometimes lack of cooperation from the partiers or continued delays from the governing tribunal could lead to the parties seeking traditional courts intervention. This intervention is not cheap and in the case of ad hoc arbitrations, harder to come by because this form of arbitration ;limits intervention from outside forces. Another factor that adds to the costs of ad hoc arbitrations is the need to hire a secretary to deal with the complex paperwork involved. The fees of this secretary needs to be taken into consideration when considering the costs of an ad hoc arbitration.
Ad hoc arbitrations might be more time efficient, but the cost efficiency only comes into action in ideal conditions. These are cooperation between the parties, parties understanding the arbitration process, and the arbitration being carried out by expert and or seasoned arbitrators. The recent change in identity was undertaken in order to reflect the organization’s commitment to the global Alternative Dispute Resolution (ADR) biosphere and the willingness to provide the most innovative and ideal services in the industry.
Despite the change in identity, the trust that AIAC has built over the course of the past 40 years is still retained. This trust coupled with a fresh new identity has created the perfect combination of modern innovation and classic heritage. The new AIAC is still headquartered in the historic Bangunan Sulaiman and is a non-profit, non-governmental organization. It has been afforded certain freedoms and special immunities in order to be able to carry out its arbitration in the most efficient and effective manner.