Perception of Malaysia's Shipbuilding company towards arbitration as dispute resolution

Abstract

The issue of this research is to identify the perception of shipbuilding companies in Malaysia toward arbitration as dispute resolution. Nowadays, rapid growth in the world maritime industry has resulted in increased activities in the integrated production and repair of ships and related marine platform. The boom in shipbuilding orders for all classes of ships in the period 2003 -2008 has been followed by an equally dramatic fall in freight rates in late 2008 and the termination of many shipbuilding contracts. This has inevitably resulted in a large number of references to arbitration of shipbuilding disputes, particularly in 2009. Malaysian is in a geographical location that enjoys competitive advantages for its shipbuilding industry. In this sense it is highly relevant to investigate the perception of shipbuilding companies in Malaysia toward arbitration as dispute resolution. The study cover the perception and awareness on arbitration and KLRCA as dispute resolution. The methodology used for this research was the use of the quantitative method to measure the related variables and simplify the data into numerical analysis in an understandable way.