19/03/2025

BIZ & FINANCE WEDNESDAY | MAR 19, 2025

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New dawn for third-party funding in Malaysia

KLIA ranked among world’s top 10 airports in 2024 ASQ survey KUALA LUMPUR: Kuala Lumpur International Airport (KLIA) has been ranked among the top 10 airports globally in the 2024 Airport Service Quality (ASQ) survey for airports handling over 40 million passengers annually. According to Malaysia Airports Holdings Bhd (MAHB), the airport received a near-perfect score of 4.99 out of 5 from the Airports Council International (ACI), which represents the collective interests of airports around the world to promote excellence in the aviation industry. ASQ serves as the leading, data-driven benchmark for airport excellence, measuring passenger satisfaction across key areas such as safety, services, facilities, and cleanliness. This reinforces KLIA’s position as a leading global aviation hub, said MAHB in a statement on Monday. MAHB managing director Datuk Mohd Izani Ghani said KLIA’s consistent placement in the ASQ top 10 airports since 2022 is a testament to the airport’s commitment to continuous improvement. “KLIA’s strong performance reflects our focus on enhancing the airport experience through innovative solutions and improved facilities. We also thank KLIA’s dedicated airport community and stakeholders who are the driving force behind our progress. “With our new shareholders placing strong emphasis on service excellence, we are confident these efforts will further elevate our standing in future global rankings,” he said. Several key elements contributed to KLIA’s success, all designed to enhance passenger comfort and convenience including a welcoming ambience, expanded seating area, upgraded charging stations, as well as fast and reliable WiFi. Passengers also rated highly the airport’s exceptional cleanliness, particularly in its washrooms, which further enhances the travelling experience. Beyond its amenities, KLIA’s dedicated staff have also been praised for their warmth and attentiveness, further showcasing Malaysia’s hospitality at its best. In preparation for Visit Malaysia Year 2026, MAHB said KLIA is undergoing key upgrades to further improve the passenger experience including expanded terminal seating, refurbished prayer rooms, and next-generation baggage trolleys. It said passengers can also look forward to improved buggy services, self-service check-in and bag drop kiosks, and new family-friendly features such as the Orangutan Playground Kids Zone, wheelchairs, baby strollers, heritage walls, and family parking lots. – Bernama

LEGALLY SPEAKING

T HIRD-PARTY funding (TPF) is the funding by an external party of a litigant’s costs for arbitration proceedings. Funding is typically provided by specialised funders or insurers, in return for a share of the settlement or damages, if the litigant is successful. The enactment of the Arbitration (Amendment) Act 2024 sees the introduction of a formal framework governing TPF in domestic and international arbitrations, where any services related to the arbitration are provided in Malaysia, even if the seat of arbitration is outside Malaysia. The Arbitration (Amendment) Act introduces a structured framework for TPF agreements emphasising legitimacy, transparency, and regulation. The Act states, amongst others, that: 0 TPF agreements may cover the “costs or expenses of the arbitration”, which includes any costs or expenses incurred prior to the commencement of the arbitration or during the arbitral proceedings or the court proceedings relating to the arbitration. 0 The common law rule against maintenance and champerty shall cease to apply to the TPF and such agreements shall not be treated as contrary to public policy; and 0 The Act sets out the disclosure requirements for such agreements which include requirements to disclose the existence of a TPF agreement and the identity of the funder to assess any potential conflicts of interests to facilitate transparency. This shift signals the end of Malaysia’s long-standing position on the torts of maintenance and champerty – both traceable to English common law and deemed contrary to public policy. Maintenance occurs when a third party, with no prior interests in the proceedings, maintains or aids a litigant to prosecute or defend an action. Champerty is a form of maintenance wherein an action is funded in exchange for a reward or portion of the proceeds of litigation. These specialised funders, often financial firms or insurers, provide financial assistance on a contingency or success-based model and are invaluable to levelling the playing field in David versus Goliath scenarios where a litigant with little means comes up against a defendant with extensive resources and deep pockets. TPF may balance the scales, ensuring the financial backing of everyday In a statement, Malaysia Airlines said the collaboration marks a significant milestone as Trip.com becomes the first third-party platform to integrate the MHupgrade programme – previously exclusive to the Malaysia Airlines website. With this integration, travellers can now seamlessly access and bid for upgrade opportunities, enjoying greater flexibility and convenience when enhancing their journey. MHupgrade offers eligible economy class or business class ticket holders the opportunity to place an offer to upgrade to the next cabin class. By integrating this feature, users who book Malaysia Airlines flights on Trip.com can now conveniently access and enjoy premium travel experiences with greater ease and flexibility. Malaysia Aviation Group chief commercial officer of Airlines Dersenish Aresandiran said: “We are delighted to collaborate with Trip.com to

TPF agreements help litigants cut financial risks by transferring costs to an external funder, reducing upfront costs, and limiting disruptions to their work. – PEXELS PIX

funders at varying stages of the proceedings, with the funders’ returns and contributions aligned to their expertise and the case’s requirements. This model however brings its own set of challenges as it requires careful coordination between the parties to prevent misalignment of expectations on the outcome, timelines, or strategies of the case. The involvement of multiple funders raises concerns about funders potentially influencing case strategy and prioritising profit over the best interests of the litigant. Without adequate safeguards, there is a risk that disputes may shift from being justice driven to being investment-driven. Whilst the introduction of TPF into arbitration proceedings marks a significant shift in the alternative dispute resolution scene in Malaysia, its newness brings both promise and uncertainty, expanding access to justice and providing a lifeline to smaller entities but at the potential cost of unfamiliar complexities. As parties navigate this evolving landscape, it is imperative to seek legal consultation to ensure fair and equitable resolution of disputes that remains justice driven, not investment driven. This article is contributed by Praveen Abraham & Sivaram Prasad of Christopher & Lee Ong (www.christopherleeong.com).

Goliaths do not outlast, overpower or pressure the Davids into submission. It holds larger corporations and well-funded entities accountable and discourages them from using financial dominance over entities or individuals with lesser means, for example, tech startups defending their patents from a dominant tech conglomerate; a subcontractors enforcing payment claims against a main contractor; and a minority shareholder challenging the unfair practices of the majority. TPF agreements also allow litigants to mitigate financial risks by transferring the costs and risks to an external funder and reducing their own upfront expenditure and exposure to losses with minimal disruption to everyday workflow. Contextually, such agreements would allow a small business(es) involved in protracted legal proceedings to avoid dipping into its working capital or exhausting other financial reserves. Incidentally, this financial safety net may also result in parties being less inclined to settle and may encourage a more robust and drawn-out pursuit of claims. TPF agreements are often bespoke, highly customisable and complex, with terms tailored to meet the litigant’s specific needs. For example, rather than relying on a single funder, agreements may cater to multiple extend the reach of our MHupgrade service. This strategic partnership will enable us to offer our valued passengers with an elevated travel experience with our signature Malaysian hospitality while expanding our presence in the global market through a trusted partner in Trip.com.” Trip.com Group associate vice-president CT Ooi said: “We are thrilled to partner with Malaysia Airlines to bring the MHupgrade service to our customers. This collaboration aligns with our commitment to enhancing the travel experience by providing more options and greater convenience to our users and is also a testament to the trust that our partners such as Malaysia Airlines have in us to build innovative new products together.” Demand for premium cabin flight bookings has been rising. In 2024, Business Class bookings on Trip.com saw three-digit growth compared to the year before, underscoring the increased willingness of travellers to spend more for added comfort and luxury on their trips.

Malaysia Airlines offers MHupgrade directly on Trip.com SEPANG: Malaysia Airlines has partnered with Trip.com, an international travel service provider, to elevate the travel experience for passengers.

MHupgrade gives eligible economy or business class ticket holders the opportunity to bid for an upgrade to a higher cabin class. – UNSPLASH PIX