Malaysia is moving to replace long‑standing practices drawn from foreign law with a fully updated domestic system for resolving shipping and ocean‑related disputes, as key legislation advanced through Parliament.
The Admiralty Jurisdiction Bill 2026 and accompanying Courts of Judicature (Amendment) Bill 2026 form part of a co-ordinated series of law reforms that also cover cross‑border insolvency and international settlement agreements reached through mediation.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman confirmed that the main bill has been referred to a special panel for in‑depth review before it proceeds further.
“The Special Select Committee will prepare a statement setting out its views and recommendations on the bill, or propose a new bill, within three months. The committee may extend the timeframe, if necessary,” she told the House recently, as quoted by Bernama.
Moving away from overseas legal precedents
Until now, some legal standards applied in local cases have been based on the United Kingdom’s Senior Courts Act 1981.
The new legislation will formally vest the High Court with clear, standalone authority over admiralty matters.
It will set out detailed rules for claims involving vessel ownership, shares, mortgages, and compensation for loss or damage.
The committee will examine how the bill is structured, what it covers, and how it is drafted before suggesting any adjustments or an alternative version if needed.
Aligning with recent legislative reforms
Azalina explained that the same review process will also consider how the changes align with related statutes already approved recently, including the Admiralty Jurisdiction Act 2026, the Cross‑Border Insolvency Act 2026, and the International Settlement Agreements Resulting from Mediation Act 2026.
These laws together, according to the official, create clearer pathways for resolving cases that cross national borders or involve complex commercial arrangements.
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Companion amendment refines court powers
The Courts of Judicature (Amendment) Bill 2026, tabled alongside the main measure, revises Section 24 of the Courts of Judicature Act 1964.
It introduces three new subsections: the first establishes the updated admiralty powers for the High Court; the second and third set out new procedures for insolvency cases that span multiple jurisdictions, as well as for enforcing agreements reached through mediation.
The amendment bill will move to its second reading during the current parliamentary sitting.
The Special Select Committee, chaired by Azalina and comprising 12 other members of Parliament, may also invite legal experts, industry bodies, civil society groups, and other stakeholders to share their views before finalising its report.
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