PRESIDENT MESSAGE MARCH 2023
MASTER BUILDERS ASSOCIATION MALAYSIA (MBAM) PROMOTES MEDIATION FOR CONTRACTUAL DISPUTES THROUGH SIGNING OF MEMORANDUM OF UNDERSTANDING (MOU) WITH CHINA ENTERPRISES CHAMBER OF COMMERCE IN MALAYSIA’S CONSTRUCTION INDUSTRY WORKING COMMITTEE
On the 24 February 2023, Master Builders Association Malaysia (MBAM) signed a Memorandum of Understanding (MoU) with China Enterprises Chamber of Commerce in Malaysia’s Construction Industry Working Committee in efforts of promoting mediation for resolving contractual disputes in the construction industry. Mr Lyu En, CECCM Construction Industry Working Committee (CCIWC) President and myself signed the MoU on behalf of our respective sides.
MBAM as “The Prime Mover and The Recognised Voice of the Malaysian Construction Industry,” is committed to building a resilient, agile and sustainable construction society through various cooperation and collaborations with its members, ministries, government institutions and NGOs. Additionally, under the guidance of the China Embassy in Malaysia, CECCM has formed the Construction Industry Working Committee in 2019 which is aimed to promote a better connection between China and Malaysia’s construction industry, act as a platform to exchange opinions with one another, improve their professional skills, enterprises management skills, team building capabilities and the development of potential opportunities.
During the MoU signing ceremony, Mr Lyu En, CCIWC President expressed his appreciation to MBAM for the collaborative partnership and called upon all CECCM members to make full use of the mediation services provided by MBAM. He also wished that the signing of the MoU would also promote more collaborations between both parties in the future. Through this MoU, the collaboration between MBAM and CCIWC will allow for us to advise both our members in reducing legal disputes while also choosing mediation as a better alternative to resolve construction disputes. MBAM has its MBAM Mediation Services (with its rules and regulations together with the panel of mediators) in which the mediation services are offered to CECCM members at an affordable cost. Our collaboration is particularly relevant in this post pandemic era where disputes among contracting parties have increased. There are more than 1, 000 cases at various courts related to construction contract disputes. In addition, on adjudication alone, fees worth hundreds of millions have been paid by disputing parties since its inception and this does not include legal expenses incurred at various courts and arbitration.
Simultaneously, MBAM also held a Seminar on Post Covid 19 Measures- CIPAA and mediation on the same day which brought together speakers such as Ir. Harbans Singh K.S., Mr Kenny Chan Yew Hoong, and Ms Karen Ng Yueh Ying in sharing knowledge on the process of adjudication under the CIPAA 2012 and mediation as well as the comparison between 2 alternative disputes resolution forums. We hope that by providing mediation services to our members and players in the construction industry, disputes can be settled quickly and more affordably so that more projects can be continued and delivered.
Oliver HC Wee
MBAM President