Sabah embeds ADR framework in government-linked contracts

Borneo Post

3 days ago

BICAM chairman Tan Sri David Wong Dak Wah (right) presenting a memento to Datuk Abidin Madingkir.
KOTA KINABALU (July 24): The State Government is embedding clear dispute resolution frameworks, including the Alternative Dispute Resolution (ADR), into government-linked transactions, development projects, and procurement agreements.
Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said the State Attorney-General Chambers had also recommended that the Borneo International Centre for Arbitration and Mediation (BICAM) model clause for mediation and arbitration be adopted in all State Government contracts to avoid halting the progress of contracts in case of disagreements.
'Disagreements must be managed professionally, efficiently and fairly. We are also encouraging our government-linked companies and statutory bodies to explore mediation as a first step not only to avoid lengthy litigation, but to preserve relationships and focus on outcomes,' he said.
The Chief Minister said this at the BICAM Global ADR Horizons 2025 conference held at the Magellan Sutera Resort today. His speech was delivered by Assistant Minister to the Chief Minister Datuk Abidin Madingkir.
'Sabah is not just a gateway to Borneo, we are strategically located along vital economic corridors in the Indo-Pacific. As global trade becomes more integrated, and supply chains more regionalised, Sabah stands to benefit from increased investment, industrial activity and infrastructure growth,' he said.
However, with growth comes complexity, he said, adding that as contracts become larger, stakeholder interests become more varied, inevitably disputes may arise and this is where ADR comes in.
'In ASEAN, we are seeing increased harmonisation of arbitration practices, stronger enforcement regimes, and the emergence of regional institutions that reflect our own legal cultures and economic realities.
'Sabah, through BICAM, is proud to be part of this global evolution offering a neutral platform aligned with international standards,' he said.
To international partners and investors, Hajiji said that Sabah is ready not just with its natural resources and economic opportunities, but also with the right legal and institutional environment.
'The presence of an international-standard ADR centre like BICAM signals our intent to uphold the rule of law, respect contract sanctity, and resolve disputes constructively,' he said.
'This conference is timely in that it seeks to modernise the way we manage differences, build trust between parties, and create resilient institutions.
'Let this conference be a platform not just for sharing knowledge, but for setting directions and finding solutions. I wish to reaffirm the State Government's commitment to positioning Sabah as a responsible, reliable, and reform-oriented state both within Malaysia and on the global stage,' he said.