MEDIATION as a tool for resolving industrial disputes has saved Malaysian employers and employees more than RM60 million in 2024, said Human Resources Minister Steven Sim Chee Keong at the inaugural Industrial Mediation Symposium 2025 held in Penang.
Sim, who officiated the event, praised the growing role of mediation in maintaining industrial peace while significantly reducing the financial and emotional costs of lengthy legal disputes.
“If each case proceeding to the Industrial Court costs both employers and employees around RM20,000, we are looking at a cost saving of more than RM60 million last year alone.
“Mediation not only saves costs and time, but ultimately preserves our industrial harmony,” Sim said in his speech.
Sim revealed that 65% of cases referred to the Director General of the Department of Industrial Relations were successfully resolved through mediation in 2024.
That translates to over 3,000 disputes settled without going to court.
Only 35% required judicial intervention, reflecting the effectiveness of Alternative Dispute Resolution (ADR) mechanisms employed under the Ministry of Human Resources (Kesuma).
Sim also highlighted that 122 Industrial Relations Officers (IROs) currently serve as conciliators nationwide, receiving professional training through strategic partnerships, including with the International Labour Organization (ILO) in Turin, Italy, the Kuala Lumpur Mediation Centre, and the Malaysian Employers Federation (MEF).
Since 2024, Kesuma has also teamed up with the United States Department of Labor to further enhance mediation training and capacity building.
The symposium was jointly organised by the Society of JP Community Mediators Penang (SJPCMP), the JP Mediation Bureau Penang, and the Federation of Malaysian Manufacturers (FMM).
In his welcoming address, SJPCMP chairman and organising chairperson Peter Chung said the Society has been actively providing pre-action community mediation services in Penang since 2019, helping reduce the volume of court-bound disputes.
“Our Society’s tagline is Bridging Divides. Our trained mediators help communities transition from conflict to resolution, enabling win-win outcomes and building a more harmonious society,” Chung said.
He added that members of the public can reach the Society via [email protected].
A highlight of the event was the official accreditation of 21 senior community mediators to serve as court-annexed mediators at the Penang High Court, a national first.
Their certificates were presented by Datuk Lim Chong Fong, Judge of the Court of Appeal.
These pioneering appointments mark a significant step forward in Malaysia’s mediation landscape, formalising the role of community-based mediators within the judiciary.
The symposium featured a strong line-up of speakers and stakeholders, including, Industrial Court chairperson Pravin Kaur Jessy, FMM Penang Chapter Chairman Datuk Seri Lee Teong Li, Penang Council of Justices of the Peace President Datuk Kho Hai Meng, JP Mediation Bureau chairmanDatuk Ong Seng Huat, and construction law expert Ir. Harbans Singh K.S.
In his closing remarks, Chung urged all participants, from the public and private sectors, to embrace mediation as a central pillar in the future of industrial relations.
“Let us champion mediation as a pillar of industrial harmony. The insights shared today must translate into action in our workplaces and communities,” he concluded.
Story by Kevin Vimal
Pix courtesy of HR Minister Steven Sim’s office