Written by Fatin Ismail
Introduction
The International Settlement Agreements Resulting from Mediation Bill 2025 (‘the Bill’) was presented for its first reading in the House of Representatives (Dewan Rakyat) on 3 December 2025.
The United Nations Convention on International Settlement Agreements Resulting from Mediation, also known as the Singapore Convention on Mediation (‘the Convention’) was adopted by the United Nations General Assembly on 20 December 2018, and subsequently came into force on the 12 September 2020. Malaysia being a signatory of the Convention, is desirous of ratifying the convention and thereby becoming a Party to the Convention.
The Bill
The Bill consisting of nine clauses in total, establishes a legal framework for international settlement agreements resulting from mediation under the Convention to reduce the disputes that result in termination of commercial relationships, facilitating the administration of international commercial transaction and contribute to the development of harmonious international economic relations.
The Bill includes a definition ‘mediation’, ‘settlement agreement’ and ‘international settlement agreement’:
‘mediation’: a process whereby two or more parties attempt to reach an amicable settlement of their commercial dispute with the assistance of a mediator.
‘settlement agreement’: an agreement in writing resulting from mediation and concluded between the parties for the resolution of a commercial dispute
‘international settlement agreement’: means a settlement agreement that is international in nature at the time of its conclusion.
The Bill however, does not apply to international settlement agreements that are:
- concluded to resolve disputes arising from a consumer for personal, family or household purposes;
- arising from family, inheritance or employment laws;
- concluded or recorded as a judgement of a court in the course of court proceedings and are enforceable as a judgment of the court; and
- enforceable as an arbitral award.
To enforce international settlement agreements, a party may make an application to the High Court for the international settlement agreement to be recorded as an order of the High Court.
Conclusion
The Bill is anticipated to have numerous positive impacts in facilitating the administration of international commercial transaction and contributing to the development of harmonious international economic relations.
Published on 23 December 2025