PUSAT MEDIASI COVID-19

Pusat Mediasi COVID-19 (PMC-19) was established by the Government of Malaysia to assist public and business entities in resolving their dispute in respect of any inability to perform contractual obligation due to the measures taken by the Government to control or prevent the spread of COVID-19.

All types of commercial contracts affected by the implementation of the MCO to curb the spread of COVID-19 can be referred to PMC-19. The dispute sum for the mediation process under PMC-19 should not exceed RM500,000.00.

PMC-19 can be contacted via email (pertanyaan@pmc19.gov.my) or office number: 03–8872 7070.

The application for mediation will take fourteen (14) days from the date upon receiving complete documents for processing.

Mediation is an alternative method of dispute resolution recognized by Malaysian Law under the Mediation Act 2012 [Act 749]. Mediation makes it easier and more affordable for parties to resolve their disputes quickly and effectively without going through litigation process.

Mediation is a voluntary negotiation process facilitated by a third party known as a Mediator. When the disputing parties reach an agreement, the parties shall enter into a Settlement Agreement. The Settlement Agreement must be in writing, signed and shall be binding on the parties.

Mediator in a mediation process is a facilitator that assist parties in negotiating and achieving an amicable solution for their dispute. The Mediator will remain independent, unbiased, neutral and does not favour any parties involved in the mediation process.

• A mediation process is a platform where parties resolve their dispute within a short period of time without involving any litigation process.
• It can be done with the assistance of a mediators who is a neutral party.
• Mediation provides ‘win-win situation’ mechanism for both parties.

Mediation in Malaysia is governed under the Mediation Act 2012 [Act 749].

No, it is subject to the provisions under the Temporary Measures to Reduce the Effects of Coronavirus Disease 2019 (COVID-19) 2020 [Act 829].

Requirements to apply for mediation services under PMC-19 are as follows:

• dispute is caused by the failure of any party to perform contractual obligations due to the measures taken by the Government to curb the spread of the COVID-19 pandemic;
• both disputing parties must agree to the mediation process under PMC-19;
• the dispute sum must not exceed RM500,000.00;
• not a bankrupt person or wound up company; and
• dispute occured within Malaysian region (domestic).

The mediation process under PMC-19 only allows for disputes between two parties only.

Bankrupts or wound up companies may apply for mediation services under PMC-19. However, they need to obtain an approval from the Director of the Department of Insolvency.

Application for mediation services under PMC-19 can be done online via www.pmc19.gov.my.

The location of mediation session will be determined by the mediator but if the mediator is unable to provide a venue for mediation session, the location will be determined by PMC-19.

Mediation session under PMC-19 is conducted physically. However, mediation session can also be conducted virtually if there is necessity.

The application must fulfil the following criteria:

• successfully pass the COVID-19 Related Assessment;
• submit complete and accurate information; and
• submit the Agreement to Mediate Form signed by both parties.

No, mediation requires consent from both parties.

The duration of one mediation session is four (4) hours. However, it may be extended based on the value of dispute.

Applications appeal for mediation services via PMC-19 can be submitted via www.pmc19.gov.my.

Applicants need to submit an appeal through the PMC-19 system. Decision on appeal will be notified via e-mail within 21 days from the date of receiving complete document.

The rules governing the mediation process under the PMC-19 are PMC-19 Mediation Rules.

Parties may refer the dispute to the relevant Mediation Service Providers such as Malaysian Mediation Centre (MMC), Asian International Arbitration Centre (AIAC) or any other private mediators.

In the event of a breach of a settlement agreement, the affected party may bring the matter to court for non-compliance to the Settlement Agreement.

Mediation under PMC-19 is not required if an action has been taken in court or a dispute has been resolved.