KUALA LUMPUR, April 3 — The government is mulling the possibility of establishing a Malaysia Mediation Centre (MMC) under the Legal Aid Department to strengthen out-of-court dispute resolution, reduce case backlogs and lower legal costs for the public.

Law and Institutional Reform Minister in the Prime Minister’s Department, Datuk Seri Azalina Othman Said, said the initiative aims to streamline mediation systems currently administered separately by various ministries and agencies through their respective tribunals.

She said a Cabinet paper will be tabled soon to seek approval for a more structured framework, including mediator registration and standardised training modules under the National Legal Academy of the Prime Minister’s Department Legal Affairs Division (BHEUU).

“The advantage of mediation is that it costs less than normal court proceedings. In Islam, it is akin to the concept of ‘sulh’,  a consensus or reconciliation that restores peace.

“This is what we want to promote, so disputes can just be resolved at the MMC without having to go to court,” she said after delivering a keynote address at the Commonwealth Legal Education Association (CLEA) Conference here today.

Azalina noted that not all individuals can afford litigation or expensive legal advice, citing the high cost of legal letters and services.

“Not everyone can afford to go to court or consult a lawyer. Even a letter of demand can cost between RM300 and RM500. It is expensive, even for those in the M40 group like young entrepreneurs who often fall in between – neither eligible for aid nor able to afford high legal fees,” she said.

The proposed MMC would initially operate in Kuala Lumpur and Putrajaya, with mediation services also available online to reduce logistical costs.

Azalina said the move forms part of broader efforts to improve access to justice in line with current economic challenges, noting that court processes also incur additional costs such as travel and fuel.

Retired judges and civil servants could also be engaged as mediators, leveraging their legal expertise and experience, she noted.

Earlier in her speech, Azalina said the Asian International Arbitration Centre will introduce pro bono commercial mediation for disputes involving claims of up to RM250,000.

The initiative is expected to be supported by a panel of independent mediators, focusing on amicable and effective dispute resolution to support sustained economic growth. — Bernama