PUSAT MEDIASI COVID-19

The Pusat Mediasi COVID-19 (PMC-19) is established by the Government to assist public in resolving their dispute in respect of any inability to perform contractual obligation arising from any of the categories of contracts specified in the Schedule [Section 7] of the Temporary Measures For Reducing The Impact of Coronavirus Disease 2019 (COVID-19) 2020 [Act 829] due to the measures prescribed, made or taken under the Prevention and Control of Infectious Diseases Act 1988 to control or prevent the spread of COVID-19. The dispute sum for the mediation process under PMC-19 should not exceed RM500,000.00.

PMC-19 can be contacted for any further information and enquiries via:

• pertanyaan@pmc19.gov.my for enquiries about to PMC-19
• PMC-19 Office Number: 03 – 8872 7070

PMC-19 will commence operations on the 16 November 2020 onwards.

The processing period for mediation services application through PMC-19 is fourteen (14) working days from the date upon receiving complete application documents.

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 the parties involved in the dispute 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 after mediation, the parties shall enter into a Settlement Agreement. The Settlement Agreement must be in writing, signed and shall be binding on the parties.

A mediator in the mediation process is a facilitator that assist parties in negotiating and achieving an amicable solution for their dispute. The Mediator will remain independent and unbiased throughout the mediation process and is a neutral party and does not favour any parties involved in this 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 at minimal cost with the assistance of a mediators who is a neutral party.
• Mediation provides ‘win-win situation’ mechanism for both parties.
• Mediation is cooperation through consultation between the parties to reach a fair settlement as no prosecutor and no advocate are involved in the mediation process.
• Recommendations and decisions made up from the disputing parties with the assistance of a mediators who is a neutral party.
• The mediator will work with the disputing parties to find an amicable solution and agreed by 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;
• dispute arose from any of the categories of contracts specified in the Schedule [Section 7], Temporary Measures to Mitigate the Effects of Coronavirus Disease 2019 (COVID-19) 2020 [Act 829];
• disputed contract must be a written contract;
• both disputing parties must agree to the mediation process under PMC-19; and
• the dispute sum must not exceed RM500,000.00.

The mediation process through 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.

Yes, but mediation services offered in Court require the case to be filed in court in accordance to the court procedure.

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

Mediation under PMC-19 is conducted physically but mediation sessions can also be conducted virtually if the need arises.

The application must fulfil the following criteria to be deemed successful:

• Successfully pass the COVID-19 Relatedness Assessment;
• Submit complete information; and
• Submit the Agreement to Mediate Form signed by both parties within the stipulated timeframe.

No, mediation requires the consent from both parties.

The duration of one mediation session is four (4) hours. However, this may be extended.

Yes, number of sessions can be extended subject to the dispute sum being RM 150,000.00 – RM 500,000.00 and the mediator thinks that the mediation requires additional sessions.

Appeal applications for mediation services via PMC-19 can be submitted only once 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.

Applicants do not need to be physically present at the PMC-19 Office. All mediation applications are submitted online.

The rules governing the mediation process under the PMC-19 are the 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 of the Settlement Agreement.

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