As the 2025 chair of Asean, Malaysia aims to focus on business law reforms to ensure legal protections for businesses across Asean member countries, said Azalina Othman Said, Minister in the Prime Minister's Department of Law and Institutional Reform.
During a recent visit to Bangkok as part of a roadshow to foster consensus and strengthen legal cooperation, Ms Azalina emphasised the need for joint reforms, particularly in international business regulations.
She said harmonised business laws are urgent for Asean members, as the region's countries are significant trade partners, often encountering cross-border disputes. "If all Asean members adopt similar clauses on dispute resolution, it would foster greater confidence in conducting cross-border trade," she said.
Ms Azalina highlighted the importance of alternative dispute resolution (ADR) mechanisms for the Asean community, as they provide an avenue for amicable settlements without resorting to costly litigation.
"Going to court, especially in a foreign country, is expensive. A streamlined resolution process that bypasses many legal protocols would create an ideal environment for international business," she said.
She said that while some lawyers work across borders, they often operate privately rather than at the government-to-government level. Implementing ADR at a governmental level would simplify lengthy legal processes and help businesses save money.
Ms Azalina pointed to the European Union as a model for Asean to follow, noting that despite differing political standpoints, EU members share a unified approach to promoting business growth, supported by ADR mechanisms.
Asean's trade relations now extend beyond member countries to partners such as China, India, and Japan through Asean+3 agreements, underscoring the importance of providing robust legal protections to achieve economic powerhouse status.
"Language differences within Asean are recognised, but ADR can serve as a common, shared framework, fostering closer economic collaboration beyond agreements on paper," she said.
Ms Azalina suggested greater collaboration between Thailand's arbitration centre and its Malaysian counterpart, particularly for business dealings between investors from both countries, to support Malaysia's aspirations for advancing business law during its Asean chairmanship.
She also advocated for leveraging AI technology to improve access to justice across Asean's diverse linguistic landscape.
"For instance, if I visit Thailand and inadvertently violate its laws, I may struggle to understand its legal procedures or find a Thai lawyer. A shared AI-driven system could provide basic legal FAQs, making justice more accessible," she said.
The EU, she said, is already exploring AI applications in the justice system, suggesting that Asean law and justice ministers collaborate on such innovations at the 2025 Asean Law Ministers' Meeting.
"I believe this system would benefit everyone in Asean," she said.