Rule 1

(1) Where the parties to a contract have agreed in writing that disputes in relation to that contract shall be settled by arbitration in accordance with the Rules for Arbitration of the Kuala Lumpur Regional Centre for Arbitration (hereinafter referred to as "the KLRCA"), then such disputes shall be settled in accordance with the UNCITRAL Arbitration Rules subject to the modification set forth in these Rules.

(2) The Rules applicable to the arbitration shall be those in force at the time of commencement of the arbitration unless the parties have agreed otherwise.

Rule 2

(1) The claimant shall file with the Director of the KLRCA a copy of the Notice of Arbitration served on the respondent.

(2) The parties shall also file with the Director of the KLRCA a copy of any other notice, including a notification, communication or proposal concerning the arbitral proceedings.

(3) If the parties have agreed on an appointing authority other than the KLRCA, they shall inform the Director of the KLRCA of the name of that authority.

Rule 3

(1) Unless the parties have agreed otherwise or if the appointing authority designated refuses to act or fails to appoint the arbitrator, the KLRCA shall be the appointing authority for the purpose of the UNCITRAL Arbitration Rules and these Rules

(2) Where, pursuant to Article 6 or 7 (3) of the UNCITRAL Arbitration Rules and paragraph (1) of this Rule, the KLRCA is to appoint a sole Arbitrator or the Presiding Arbitrator, the list of names to be communicated by the KLRCA to the parties shall be determined by the Director of the KLRCA.

(3) Where, pursuant to Article 7 (2) (a) of the UNCITRAL Arbitration Rules and paragraph (1) of this Rule, the KLRCA is to appoint the second Arbitrator, the Director of the KLRCA shall be the appointing authority.

Rule 4

The Director of the KLRCA shall, at the request of the Arbitral Tribunal or either party, make available, or arrange for, such facilities and assistance for the conduct of arbitration proceedings as may be required, including suitable accommodation for sittings of the Arbitral Tribunal, secretarial assistance and interpretation facilities.

Rule 5

(1) The parties shall furnish to the Director of the KLRCA copies of the statement of claim, the statement of defence, the counter-claim and reply to counter-claim (if any) and any amendments thereto which they file with the Arbitral Tribunal.

(2) Unless the parties agree otherwise, the sole Arbitrator or the Presiding Arbitrator shall, at the conclusion of the proceedings, furnish to the Director of the KLRCA a complete set of records.

Rule 6

(1) The Arbitral Tribunal shall render its final award within a period which is limited to six months. Such period shall start to run from the day when the Arbitral Tribunal receives the Respondents' Statement of Defence or counter-claim as defined in Article 19, or in the case of default from the date that the Arbitral Tribunal orders the continuation of the proceedings under Article 28 (1). If in accordance with Article 20, amendments are to be allowed by the Arbitral Tribunal, the time limit shall commence from the date of the amendments. Such time limit may be extended by the Arbitral Tribunal with the consent of the parties, or in the absence of consent in consultation with the Director of the KLRCA.

(2) The Arbitral Tribunal shall furnish to the Director of the KLRCA a signed copy of the award made by it, whether interim, interlocutory, partial or final. The Director of the KLRCA shall render all assistance in the filing or registration of the award when the same is required by the law of the country where the award is made.

Rule 7

(1) For the purpose of these Rules, the term "costs" as specified in Article 38 of the UNCITRAL Arbitration Rules shall also include the expenses reasonably incurred by the KLRCA in connection with the arbitration as well as its administrative charges.

(2) The facilities made available by the KLRCA itself may be charged for on the basis of comparable costs.

(3) In fixing its fees the Arbitral Tribunal shall consult with the Director of the KLRCA The Director of the Centre may undertake consultations with the parties before giving advice to the Arbitral Tribunal. The Director of the Centre, in consultation with the Arbitrators and the parties, shall settle the basis of computation of fees and expenses in accordance with the schedule annexed hereto before the Arbitrators take up their duties.

(4) The fees of the Arbitrators and the KLRCA's administrative charges may, in exceptional cases, be fixed at a higher figure than that provided in the schedule annexed.

(5) For the purpose of calculating the amount in dispute the value of any counterclaim and/or set-off will be added to the amount of the claim.

(6) Where a claim or counterclaim does not state a monetary amount, an appropriate value for the claim or counterclaim shall be settled by the KLRCA in consultation with the Arbitrators and the parties for the purpose of computing the Arbitrators' fees and the KLRCA's administrative charges.

(7) If the parties have designated an appointing authority other than the KLRCA, the fees and expenses of the appointing authority shall be fixed by the Director of the KLRCA in consultation with the appointing authority.

Rule 8

In lieu of the provisions of Article 41 of the UNCITRAL Arbitration Rules the following provisions shall apply:

(1) The Director of the KLRCA shall prepare an estimate of the cost of arbitration and may request each party to deposit an equal amount as an advance for those costs.

(2) During the course of the arbitral proceedings the Director of the KLRCA may request supplementary deposits from the parties.

(3) If the required deposits are not paid in full within thirty days after the receipt of the request, the Director of the KLRCA shall so inform the parties in order that one or another of them may make the required payment. If such payment is not made, the Arbitral Tribunal, after consultation with the KLRCA, may order the suspension or termination of the arbitral proceedings.

(4) The Director of the KLRCA may apply the deposits toward disbursements for the costs of arbitration.

(5) After the award has been made, the Director of the KLRCA shall render an accounting to the parties of the deposits received and return any unexpended balance to the parties.

Rule 9

Where the parties have referred their dispute to conciliation/mediation under KLRCA's Conciliation/Mediation Rules and they have failed to reach a settlement and thereafter proceed to arbitration under these Rules, then one-half of the administrative costs paid to KLRCA for the conciliation/mediation shall be credited towards the administrative costs of the arbitration.

Rule 10

The Arbitrator and the parties must keep confidential all matters relating to the arbitration proceedings. Confidentiality extends also to the award, except where its disclosure is necessary for purposes of implementation and enforcement.

Rule 11

Neither the KLRCA nor the Arbitrator shall be liable to any party for any act or omission related to the conduct of the arbitration proceedings.

Rule 12

The parties and the Arbitrator agree that statements or comments whether written or oral made in the course of the arbitration proceedings shall not be relied upon to found or maintain any action for defamation, libel, slander or any related complaint.

Appendix A

Arbitrator's Fees (US$)

(a) Schedule of Fees

(b) Illustration

Appendix B

Costs of Arbitration