AIAC and SAMENTA Northern Region Sign MOU to Bring Free Legal and Mediation Support to SMEs
Penang, 25 September 2026 — The Asian International Arbitration Centre (AIAC) and SAMENTA Northern Region have signed a Memorandum of Understanding (MOU) to bring professional legal and mediation support within reach of small and medium enterprises across Penang and the northern region.
The MOU was signed at Road to Kainos – The Northern Edition, held at Gurney Bay Hotel, Penang, and organised by the Justices of the Peace Mediation Bureau Penang in collaboration with AIAC and Asia ADR Week 2026. SAMENTA Northern Region was represented by its Deputy Chairman, Ts Dr. Celvin Tan, with Chairman Calvin Kwan witnessing the signing.
Free legal and mediation support for SMEs
Under the collaboration, a Corporate Social Responsibility (CSR) initiative will provide free legal consultation and mediation assistance to SAMENTA members and SMEs involved in commercial disputes with claims of up to RM250,000.
The aim is to give businesses a practical route to resolve disputes before they escalate into court proceedings, where legal fees, time and management attention can quickly outweigh the value of the claim itself.
Disputes involving smaller amounts are welcome to seek assistance — the RM250,000 figure is a threshold, not a minimum. As SAMENTA Northern Region chairman Calvin Kwan has noted, for many SMEs even a modest unpaid sum is enough to affect cash flow and day-to-day operations, and claims below RM50,000 are generally not worth taking to court once legal costs are counted.
Room to grow to larger disputes
The RM250,000 ceiling reflects the resources available at the start of the initiative. As the programme develops, SAMENTA Northern Region hopes to extend support to larger and more complex commercial disputes, including cases valued at more than RM1 million.
AIAC currently operates from Kuala Lumpur. Under the MOU, the centre will look for a suitable location in Penang so that northern SMEs can access dispute resolution services closer to home.
Why Alternative Dispute Resolution matters
Alternative Dispute Resolution (ADR) — mediation, arbitration and conciliation — allows parties to settle their differences without going to trial. For SMEs, that can mean lower cost, faster resolution and, in many cases, a commercial relationship that survives the disagreement.
Those priorities shaped the Road to Kainos programme, which included sessions on port and logistics disputes, ADR for Penang’s construction sector and an introduction to the AIAC Suite of Rules 2026. AIAC Chief Executive Officer Datuk Danesh Chandran delivered the closing remarks.
An MOU, and a commitment
“This MOU is more than just a formal agreement. It is a commitment to building a stronger support system for our SME community — starting with smaller disputes today, and hopefully growing towards supporting SMEs with larger and more complex disputes tomorrow,” said Calvin Kwan.
SAMENTA also recorded its appreciation to AIAC, the Justices of the Peace Mediation Bureau Penang, and the legal and business professionals who contributed to making the collaboration possible.
AIAC and SAMENTA Northern Region Sign MOU to Bring Free Legal and Mediation Support to SMEs
Penang, 25 September 2026 — The Asian International Arbitration Centre (AIAC) and SAMENTA Northern Region have signed a Memorandum of Understanding (MOU) to bring professional legal and mediation support within reach of small and medium enterprises across Penang and the northern region.
The MOU was signed at Road to Kainos – The Northern Edition, held at Gurney Bay Hotel, Penang, and organised by the Justices of the Peace Mediation Bureau Penang in collaboration with AIAC and Asia ADR Week 2026. SAMENTA Northern Region was represented by its Deputy Chairman, Ts Dr. Celvin Tan, with Chairman Calvin Kwan witnessing the signing.
Free legal and mediation support for SMEs
Under the collaboration, a Corporate Social Responsibility (CSR) initiative will provide free legal consultation and mediation assistance to SAMENTA members and SMEs involved in commercial disputes with claims of up to RM250,000.
The aim is to give businesses a practical route to resolve disputes before they escalate into court proceedings, where legal fees, time and management attention can quickly outweigh the value of the claim itself.
Disputes involving smaller amounts are welcome to seek assistance — the RM250,000 figure is a threshold, not a minimum. As SAMENTA Northern Region chairman Calvin Kwan has noted, for many SMEs even a modest unpaid sum is enough to affect cash flow and day-to-day operations, and claims below RM50,000 are generally not worth taking to court once legal costs are counted.
Room to grow to larger disputes
The RM250,000 ceiling reflects the resources available at the start of the initiative. As the programme develops, SAMENTA Northern Region hopes to extend support to larger and more complex commercial disputes, including cases valued at more than RM1 million.
AIAC currently operates from Kuala Lumpur. Under the MOU, the centre will look for a suitable location in Penang so that northern SMEs can access dispute resolution services closer to home.
Why Alternative Dispute Resolution matters
Alternative Dispute Resolution (ADR) — mediation, arbitration and conciliation — allows parties to settle their differences without going to trial. For SMEs, that can mean lower cost, faster resolution and, in many cases, a commercial relationship that survives the disagreement.
Those priorities shaped the Road to Kainos programme, which included sessions on port and logistics disputes, ADR for Penang’s construction sector and an introduction to the AIAC Suite of Rules 2026. AIAC Chief Executive Officer Datuk Danesh Chandran delivered the closing remarks.
An MOU, and a commitment
“This MOU is more than just a formal agreement. It is a commitment to building a stronger support system for our SME community — starting with smaller disputes today, and hopefully growing towards supporting SMEs with larger and more complex disputes tomorrow,” said Calvin Kwan.
SAMENTA also recorded its appreciation to AIAC, the Justices of the Peace Mediation Bureau Penang, and the legal and business professionals who contributed to making the collaboration possible.
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SAMENTA — the first association of small and medium enterprises in Malaysia — has served Malaysian SMEs since 1986.
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