Section 2 — AKTA TIMBANGTARA 2005

(a)

one of the parties to an arbitration agreement, at the time of the conclusion of that agreement, has its place of business in any State other than Malaysia;

(b)

one of the following is situated in any State other than

Malaysia in which the parties have their places of business:

(i)

the seat of arbitration if determined in, or pursuant to, the arbitration agreement;

(ii)

any place where a substantial part of the obligations of any commercial or other relationship is to be performed or the place with which the subject matter of the dispute is most closely connected;

or

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(c)

the parties have expressly agreed that the subject matter of the arbitration agreement relates to more than one

State;

“domestic arbitration” means any arbitration which is not an international arbitration;

“arbitral tribunal” means an emergency arbitrator, a sole arbitrator or a panel of arbitrators.

(2)

For the purposes of this Act—

(a)

in the definition of “international arbitration”—

(i)

where a party has more than one place of business, reference to the place of business is that which has the closest relationship to the arbitration agreement; or

(ii)

where a party does not have a place of business, reference to the place of business is that party’s habitual residence;

(b)

where a provision of this Act, except section 3, leaves the parties free to determine a certain issue, such freedom shall include the right of the parties to authorize a third party, including an institution, to determine that issue;

(c)

where a provision of this Act refers to the fact that the parties have agreed or that they may agree or in any other way refers to an agreement of the parties, that agreement shall include any arbitration rules referred to in that agreement;

(d)

where a provision of this Act refers to a claim, other than in paragraphs 27(a) and 34(2)(a), it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply to a defence to that counterclaim.

Application to arbitrations and awards in Malaysia