Just four firms have received Qualifying Foreign Law Practice (QFLP) licences from Singapore’s Ministry of Law (MinLaw) in the second round of the licence process, with Gibson, Dunn & Crutcher, Jones Day, Linklaters and Sidley Austin being the recipients.
A total of 23 licences were received by MinLaw by the closing date of Aug. 31, 2012. Media reports had cited Watson Farley & Williams, DLA Piper and K&L Gates as being among the firms that had applied for QFLP licences.
The four successful firms will have up to six months from April 1 to commence their operations as QFLPs, and their licences will be valid for an initial period of five years from the respective start dates, MinLaw said in an e-mailed release.
In the first round, six foreign firms, namely Allen & Overy, Clifford Chance, Herbert Smith, Latham & Watkins, Norton Rose and White & Case were awarded QFLP licences.
The QFLP licences allow Foreign Law Practices (FLPs) to practise in all areas of Singapore law, except domestic areas of litigation and general practice, for example, criminal law, retail conveyancing, family law and administrative law.
According to MinLaw, the nominal value added of the legal services sector has since grown by more than 25 per cent from S$1.5 billion in 2008 to an estimated S$1.9 billion in 2012. From 2008 to 2011, the value of legal services exported from Singapore increased by 51.8 per cent, from S$363 million in 2008 to S$551 million in 20114. In particular, arbitration activities have grown significantly. The total number of new cases handled by the Singapore International Arbitration Centre (SIAC) has increased from 99 cases in 2008 to 235 cases in 2012.
Reactions
“This is a very welcome development and we are delighted to have been awarded the QLFP licence. Linklaters has a long term commitment to Singapore and we are privileged to be an established member of its legal community. This licence will enable us to better serve our clients who increasingly require advice on Singapore law both to support their business activities in Singapore and as a key part of an integrated, multijurisdictional legal service. More broadly, this will open up further opportunities for Singapore lawyers in our global firm and help internationalise the Singapore legal profession.” – Kevin Wong, Linklaters' Managing Partner in Singapore
“We are delighted to be awarded the QFLP licence and thank the Ministry of Law for selecting Jones Day. We believe that Singapore law will become more prevalent as the governing law for cross border transactions in the future.
“With the continued growth of Asian economies – particularly emerging markets in India and Southeast Asia – we not only see a substantial increase in the frequency and complexity of transactions negotiated from Singapore, but also our Singapore office taking a leading role in the development of our overall Asia practice. Our ability to advise on Singapore law will enable us to apply our institutional knowledge and experience to all aspects of transactions and disputes.” – Sushma Jobanputra, Partner-in-Charge of Jones Day’s Singapore office
“In the nearly 20 years I have worked in Asia, I have seen the Southeast Asian markets continue to grow and develop in scale and sophistication, and Singapore has been the hub for this growth. Sidley has been committed to serving clients in Asia for over 30 years, and with the QFLP licence we are beginning an important new phase of our development in Asia. Working with our colleagues around the globe, we look forward to continuing to grow in the region by continuing to provide clients with strategic advice as they develop their businesses, regionally and globally.” – Matthew Sheridan, partner, Sidley Austin’s Singapore office
Ranajit Dam is Editor of ALB. Follow us on Twitter: @ALB_Magazine.