Doing business between Malaysia and Germany? If a contract dispute arises, you can have it resolved quickly, confidentially and with a binding result through the Arbitration Court at the German Chamber of Commerce and Industry (Schiedsgerichtshof bei der DIHK, SGH) – fully digitally, in English or German, from any location.
Key facts at a glance
- Fast and predictable: SGH proceedings aim for an arbitral award within 12 months of the tribunal being constituted, or within six months under the fast-track procedure.
- Internationally enforceable: SGH awards are made in Germany and can be recognised and enforced in more than 170 countries under the 1958 New York Convention.
- Built for mid-sized companies: fixed, transparent fees, a sole arbitrator for disputes up to EUR 250,000, and proceedings conducted online in English or German
What is the SGH?
The Arbitration Court at the DIHK (SGH) is the nationwide arbitral institution of the German chamber organisation, established by the German Chamber of Commerce and Industry (DIHK) in Berlin. It administers commercial arbitration for companies of all sizes, in Germany and abroad, and draws on the experience of the 79 Chambers of Commerce and Industry (IHKs) in Germany and the network of German Chambers of Commerce Abroad (AHKs) at more than 150 locations in 93 countries.
Why arbitration matters for cross-border contracts
For companies trading internationally, the enforceability of a decision is a key factor when choosing how disputes will be resolved. Arbitral awards made in Germany, including SGH awards, can be recognised and enforced in more than 170 countries under the 1958 New York Convention. This benefits foreign companies dealing with German partners just as much as German companies enforcing their claims abroad.
Your benefits with SGH arbitration
Choose English or German
Proceedings can be conducted in either language, which makes the SGH accessible to European and non-European companies alike.
International Enforceability
A key advantage: under the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”), to which more than 170 states are party, arbitral awards a
Fully digital
Filings, documents and case administration run through the SGH Procedure Management Platform (VMP/PMP), accessible from anywhere. Data is stored on servers in Germany and protected by two-factor authentication.
Video Hearings
Oral hearings are usually held by video conference, saving travel time and cost – a clear advantage when parties sit in different time zones.
Freedom of Choice
You can agree on the applicable law, the seat of arbitration, the language and, together with the other party, your arbitrators.
Experts as Arbitrators
The SGH helps you select arbitrators with the legal knowledge and sector experience your case requires. Publicly appointed and sworn experts can support the tribunal on technical questions.
Cost Control
Arbitrator fees and SGH processing fees follow a fixed schedule, and there is no second instance. An online cost calculator lets you estimate costs in advance.
Confidentiality
Hearings are not public, protecting your trade secrets and business relationships.
Quality Assurance
The SGH can carry out a formal review of the award and suggest changes to safeguard its quality and enforceability, while the tribunal retains full freedom to decide.
Mediation at any Stage
You can agree on mediation before arbitration, or pause ongoing proceedings for up to two months to attempt an amicable settlement.
How SGH arbitration works: step by step
Arbitration agreement
Both parties agree to SGH arbitration, either through a clause in the original contract or a separate agreement made later.
Filing
The claimant submits the digital request for arbitration via the SGH Procedure Management Pl
Release of the Statement of Claim
Once the claimant has paid the processing fee and security deposit, the claim is made available to the respondent on the platform.
Constitution of the Tribunal
Unless agreed otherwise, disputes up to EUR 250,000 are decided by a sole arbitrator; higher-value disputes by a panel of three. The parties select the arbitrator(s) jointly; if they cannot agree, the SGH appoints them.
Case Management Conference and Timetable
The tribunal holds a structuring call with the parties by telephone or video and sets a binding procedural timetable.
Exchange of Submissions
All pleadings and documents are exchanged digitally between the parties, the tribunal and the SGH.
Oral Hearing
Usually held by video conference; evidence is taken where necessary. Mediation remains possible at any point.
Arbitral Award
The tribunal issues a binding award, which also allocates the costs of the proceedings.
Target Duration
A maximum of 12 months; fast-track procedure: a maximum of six months.
Prepare now: add the SGH clause to your contracts
The best time to agree on dispute resolution is before a dispute arises. Speak to your contractual partner about including the SGH model arbitration clause in your contracts. The SGH offers a standard arbitration clause and a combined mediation and arbitration clause, together with optional supplements. The parties may also individually determine the place of arbitration, the number of arbitrators, the language of the proceedings and other details.
What AHK Malaysia recommends adding
“All disputes arising out of or in connection with the present contract or in regard to its validity shall be finally settled under the Rules of Arbitration of the Arbitration Court at the German Chamber of Commerce and Industry while excluding ordinary legal proceedings.”
The model clauses, optional supplements and further documents are available for download from the SGH website:
Link: SGH model clauses (English) – https://schiedsgerichtshof.de/eng/dokumente/sgh-musterklauseln/
Useful SGH tools
- Conflict Navigator: answer a few questions to find the dispute resolution method that fits your needs, including suitable model clauses.
- Cost Calculator: estimate the expected costs of your proceedings in advance.
- IHK Expert Register: a nationwide directory of publicly appointed and sworn experts at www.svv.ihk.de (https://www.svv.ihk.de).
All tools are available on the SGH website: https://schiedsgerichtshof.de/eng/
Frequently asked questions
What is the DIHK Arbitration Court (SGH)?
The Schiedsgerichtshof bei der DIHK (SGH), or Arbitration Court at the German Chamber of Commerce and Industry, is the arbitral institution of the German chamber organisation, based in Berlin. It administers commercial arbitration for companies in Germany and abroad under the SGH Arbitration Rules.
Can companies outside Germany use the SGH?
Yes. SGH services are open to all companies. Proceedings can be conducted in English or German, are administered online and hearings are usually held by video conference, so parties can take part from any location.
Where can an SGH arbitral award be enforced?
SGH awards are made in Germany and can be recognised and enforced in more than 170 countries under the 1958 New York Convention.
How long does SGH arbitration take?
The SGH Arbitration Rules aim for an award within 12 months of the tribunal being constituted. Under the fast-track procedure, the target is six months.
How much does SGH arbitration cost?
Arbitrator fees and SGH processing fees are fixed and binding. Disputes up to EUR 250,000 are normally heard by a sole arbitrator, which keeps costs down. Use the cost calculator on the SGH website for an estimate.
Can we try mediation first?
Yes. You can agree on the combined SGH mediation and arbitration clause, under which mediation comes first and arbitration follows only if no agreement is reached within six weeks. Parties can also pause ongoing arbitration for up to two months to attempt mediation.
How do we agree on SGH arbitration?
Include the SGH model arbitration clause in your contract, or conclude a separate arbitration agreement once a dispute has arisen. The official clauses are available on the SGH website.