In the second part of ALB’s web-only series on what the Year of the Monkey will look like for Asia’s key markets, we speak to Eddee Ng, Joint Managing Partner of Tan Kok Quan Partnership, on what 2016 holds for Singapore.
Read the first part of the series, on Hong Kong, here.
ALB: What are some of the most important legal and regulatory developments you expect to see in Singapore in 2016?
Ng: We expect to see more large-scale commercial cases being referred to and taken up by the freshly-constituted Singapore International Commercial Court (“SICC”). As Singapore continues to develop itself as a regional hub, we also expect to see more cross-border issues being heard in the SICC.
There may also be possible changes to insolvency and restructuring practice, as amendments to the Companies Act and the introduction of new insolvency legislation are currently being mooted.
One significant development concerning insolvency litigation is the recent case of Re Vanguard Energy Pte Ltd [2015] SGHC 156, which appears to have paved the way for arrangements where the creditors and/or shareholders of an insolvent company fund legitimate litigation proceedings brought by the company.
On the front, it is noteworthy that Hong Kong is seriously considering third party funding for arbitration vide the Law Reform Commission of Hong Kong’s Consultation Paper on Third Party Funding for Arbitration released on 19 October 2015. It remains to be seen whether Singapore will follow suit. As the third party funder may have a say in the choice of forum, a forum permitting such third party funding might see an increase in the volume of disputes it handles. Naturally, safeguards have to be put in place to ensure that no conflicts of interest arise because of such funding but it does seem that permitting such funding is not unworkable. If allowed, it will present a welcome boost to Disputes work.
ALB: What were some of the legal and business trends you saw in 2015? Do you expect these to continue in 2016?
Ng: The economic slowdown in 2015 is likely to continue to have an impact on businesses in 2016. Bank creditors are less likely to pull the trigger on financing compared to the Asian Financial Crisis, leading to less court-led workout, but at the same time non-court debt restructuring is nonetheless anticipated to rise.
ALB: What were some of the trends when it came to the kinds of work your firm did in 2015?
Ng: Our firm continued to enjoy a vibrant practice in high end commercial disputes. We do see some increase in restructuring work. We have also started a new practice in Project Finance and Infrastructure given the strong investment interests in infrastructure projects.
ALB: How do you see the legal industry in Singapore evolving in 2016?
Ng: We expect to see greater consolidation and tie-ups between local and international law firms to take advantage of economies of scale and to ward off competitive forces.
ALB: What kinds of advice are you giving clients about the coming year?
Ng: In light of the economic slowdown, clients should pay close attention to bad debts, and to act quickly to secure their position against potentially insolvent counterparts.
