December 2024 ASIA EDITION MCI (P) 004/02/2024 ISSN 0219 – 6875 KDN PPS 1867/10/2015(025605) State of the Market 2024 Trends, challenges, and opportunities in the region’s legal industry Leading litigators of Asia Showcasing IP superstars Indonesia’s firms to watch
ALB HONG KONG REGULATORY SUMMIT 2025 19 MARCH - HONG KONG Amid rapid economic digitisation and new technologies rapidly evolving, financial crime is becoming more sophisticated, posing an ever-growing threat as the damage goes well beyond the financial aspect. Global financial crimes in 2023 led to staggering estimated losses ranging from US$1.6 trillion to US$3.1 trillion, and the United Nations Office on Drugs and Crime further estimates that 2-5% of global GDP—equivalent to up to US$2 trillion—is laundered annually. Hong Kong is not immune to this challenge. Recent statistics from the Hong Kong Police Force revealed over 19,000 cases of deception within just the first half of 2024, equating to 44% of the region’s total crime and resulting in a staggering HK$4.48 billion loss. • Regulatory and Compliance Policy Roundtable • Outsmarting Financial Crime: The Transformative Power of AI in Anti-Money Laundering • The Dark Side of AI - The Rise of Deepfakes and Its Impacts • Understanding the evolving crypto and digital assets regulatory compliance landscape • Navigating Financial Crime Risks in Crypto-assets and CBDCs: Leveraging MiCA and the Travel Rule • Leveraging AI for Sanctions and Trade Compliance and Screening • Growing Economic Sanctions and Export Control Risks – and How Companies Can Manage Them • Cyber Risk and AI: CISO Challenges, Successes, and Best Practices • Belt and Road Initiative: Strengthening Financial Crime Compliance and Cross-Border Payment Security • Strengthening Asset Recovery Efforts: Challenges, Strategies and Best Practices of Asset Recovery in Hong Kong • The RegTech Revolution Under Way: Leveraging AI in AML & Financial Crime Compliance • Navigating ESG Regulations: Staying Ahead in Sustainable Finance Compliance • Combatting Organised Crime and Cyber Fraud: Addressing Key Threats in Southeast Asia SPONSORSHIP ENQUIRES Kamil Akhtar kamil.akhtar@thomsonreuters.com T: (+65) 6973 8235/ M:(+65) 8697 0716 FOR MORE INFORMATION, KINDLY VISIT: https://www.regulatorysummitasia.com/home-asiaregsummit SPONSOR SPEAKING OPPORTUNITIES Mohd Fazlan fazlan.fuad@thomsonreuters.com (+65) 9381 8370 TOPIC HIGHLIGHTS PROUDLY PRESENTED BY Amantha Chia amantha.chia@thomsonreuters.com ALB HONG KONG ANTI-CORRUPTION & CORPORATE COMPLIANCE FORUM 2025 19 MARCH - HONG KONG ALB Hong Kong Anti-Corruption & Corporate Compliance Forum 2025 brings you up-to-date on critical developments and provides practical solutions for anticorruption risks faced on a daily basis. This year’s forum will gather legal experts, in-house compliance professionals, and government leaders together to discuss pertinent issues, corruption investigations, and enforcement trends across Hong Kong and Greater China. You will also learn from best practices shared by fellow legal and compliance professionals on how to deal with complex issues as they arise and get practical advice on training and aligning employees with corporate compliance objectives to maintain compliance. Get workable insights and proven ideas to enhance your organisation’s compliance. • Keynote: Anti-Corruption in Hong Kong: Where We Are, Where We Are Headed • Partnering for Impact: Galvanising the Private Sector in the Fight Against Corruption • Post-Election Trade Policies - What to Expect After the U.S. Elections • Emerging Trends in GRC • The Impact of Corruption on Cybersecurity-Link Between Corruption and Cybercrime • A Deep Dive into the FCPA - Bribery and Corruption Reporting Obligations • Beyond Compliance: Investigating and Mitigating Supply Chain Risks in High-Risk Jurisdictions • AI in Action - Enhancing White-Collar Crime Investigations with Advanced Tools • The Latest Due Diligence Issues in M&A: Where Are the Red Flags? • Data-Driven Culture is the Future of Compliance • Attract and Retain Top Legal Talent • Investigation Team for Internal Whistleblowing – Best practices to protecting reputation in the event of whistleblowing SPONSORSHIP ENQUIRES Amantha Chia amantha.chia@thomsonreuters.com FOR MORE INFORMATION, KINDLY VISIT: https://www.legalbusinessonline.com/ACC2025 SPEAKING OPPORTUNITIES Mohd Fazlan fazlan.fuad@thomsonreuters.com / (+65) 9381 8370 TOPIC HIGHLIGHTS PROUDLY PRESENTED BY
1 Asian Legal Business | December 2024 COVER STORY 24 State of the market By Sarah Wong & Nimitt Dixit In 2024, Asia’s legal markets remained in flux. One hand, Singapore stood tall as a neutral arbitration hub, Indonesia’s booming economy beckoned global firms, and India’s legal scene sizzled with talent wars and ambitious expansions. And Saudi Arabia led a Middle Eastern renaissance, shaking up the region with bold reforms. At the other end of the region Hong Kong continued to reel from a tidal wave of firm downsizing and exits as its grappled with a profound crisis of confidence. But not all hope is lost, as growing southbound interest from mainland China began to offer a lifeline to Hong Kong’s beleaguered legal market. FEATURES 16 ALB Litigators of Asia 2024 In the dynamic field of law, Asia has seen exceptional litigators who have made a lasting impact. These top-tier professionals are widely recognized for their achievements and dedication to justice. 34 Fool me once Renewed uncertainties brought by Donald Trump’s White House Contents December 2024 BRIEFS 3 Headlines 6 Explainer 7 Appointments 8 Deals comeback have prompted law firms in Asia to prepare for a wave of geopolitical and economic challenges anticipated from a new era of America First. 36 ALB Indonesia Firms to Watch 2024 Driven by a resilient economy and changing regulations, Indonesia’s legal landscape is continuously evolving. This transformation is paving the way to emergence of a new generation of innovative law firms that combine strong local expertise with a global outlook. 40 When capital meets law Third-party litigation funding, introduced to Asia’s legal market in 2017, is gaining momentum in China. This innovative approach allows external parties to finance legal disputes, addressing high litigation costs and improving access to justice. Chinese firms are adapting the concept to meet local needs, particularly in complex crossborder disputes and international arbitrations. 42 ALB Asia Top 15 IP Lawyers 2024 Asian Legal Business continues to spotlight 15 leading IP practitioners across Asia who have excelled in the ever-evolving field of intellectual property. With a proven track record, they have established themselves as trusted advisors to clients, strong competitors among peers, and innovative leaders paving the way for others in the industry. 46 Law Awards coverage Winners, photos, quotes and more from the ALB Middle East Law Awards 2024 and ALB Indonesia Law Awards 2024. 40
2 Asian Legal Business | December 2024 From the editor Head of Legal Media Business, Asia & Emerging Markets Amantha Chia amantha.chia@thomsonreuters.com Managing Editor Ranajit Dam ranajit.dam@thomsonreuters.com Asia Journalist Sarah Wong sarah.wong@thomsonreuters.com Asia Writer Nimitt Dixit nimitt.dixit@thomsonreuters.com Rankings & Special Projects Editor Wang Bingqing bingqing.wang@thomsonreuters.com Copy & Web Editor Rowena Muniz rowena.muniz@thomsonreuters.com Senior Designer John Agra john.agra@thomsonreuters.com Traffic/Circulation Manager Rozidah Jambari rozidah.jambari@thomsonreuters.com Sales Managers Hiroshi Kaneko Japan, Korea (81) 3 4520 1192 hiroshi.kaneko@thomsonreuters.com Jonathan Yap Indonesia, Singapore (65) 6973 8914 jonathan.yap@thomsonreuters.com Romulus Tham Southeast Asia (65) 6973 8248 romulus.tham@thomsonreuters.com Simon Wan Hong Kong (852) 3462 7730 simon.wan@thomsonsreuters.com Steffi Yang South and West China (86) 010 5669 2041 qifan.yang@thomsonreuters.com Steven Zhao China Key Accounts (86) 10 6627 1360 s.zhao@thomsonreuters.com Yvonne Cheung China Key Accounts, Hong Kong and Korea (852) 2847 2003 yvonne.cheung@thomsonreuters.com Senior Events Manager Julian Chiew julian.chiew@thomsonreuters.com Senior Events Manager, Awards Tracy Li tracy.li@thomsonreuters.com Farewell 2024 One of the most enjoyable aspects of being the editor of a group of publications covering the legal industry is the sheer pace of change, something that has accelerated in the past few years. Contrary to the popular perception of the industry, law is a genuinely dynamic business, closely connected to politics and policy. It is no surprise that among the events we followed most closely this year were major elections like those in India, Indonesia, and, of course, the U.S., and we devote ample amounts of coverage to the impact of the U.S.- China trade war and the different conflict zones globally. The legal industry is also in a significant transformation phase at the moment, driven by client requirements, the needs of a younger cohort of lawyers, but, most of all, by the fastevolving technological tools available at lawyers’ disposal. And all this is at the macro level. Each of the jurisdictions we cover, as evidenced by Sarah Wong and Nimitt Dixit’s State of the Market report in this issue, presents its own set of challenges and opportunities; and markets that seem to be down today could just as well be up again in the not-too-distant future. ALB evolved as well. Those who avidly follow us on the web and social media will have witnessed our more intense focus in this area in 2024. Our coverage of breaking news is both wider and more frequent, and our buzzing LinkedIn page recently went past 31,000 followers – if you aren’t following Asian Legal Business yet on LinkedIn, you really should be. From a geographic perspective, our online India coverage is significantly deeper than it was 12-18 months ago, we have a monthly Middle East section in the Asia publication, and ALB China has a column focusing on the cutting-edge tech coming out of that country, from AI chatbots to driverless cars. In 2025, expect even more innovations, as we launch video explainers, reaction pieces, surveys and more. As the leading publication covering Asia’s legal industry, change is the least we can do. Ranajit Dam Managing Editor, Asian Legal Business, Thomson Reuters Asian Legal Business is available by subscription. Please visit www.legalbusinessonline.com for details. Asian Legal Business has an audited average circulation of 11,402 as of 30 September 2016.Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Asian Legal Business can accept no responsibility for loss. MCI (P) 004/02/2024 ISSN 0219 – 6875 KDN PPS 1867/10/2015(025605) Thomson Reuters Alice @ Mediapolis, 29 Media Circle, #09-05, Singapore 138565 / T (65) 6775 5088 10/F, Cityplaza 3, Taikoo Shing, Hong Kong / T (852) 3762 3269 www.thomsonreuters.com The ALB India Top IP Boutiques 2024 ranking can be found at www.legalbusinessonline.com/features/alb-india-top-intellectual-property-boutique-firms-2024
3 Asian Legal Business | December 2024 TheBriefs Johnson Stokes & Master (JSM), one of Hong Kong’s oldest law firms, has announced its return as a leading independent firm in the region following a previously announced separation from Mayer Brown. The 160-year-old Hong Kong partnership has received approval from The Law Society of Hong Kong to revert to its legacy name following Mayer Brown’s announcement of its plans to separate from its current Hong Kong operations. However, JSM will temporarily remain in association with Mayer Brown Hong Kong during a transition period. JSM’s rich history dates back to 1863, when it was established in Hong Kong by Edmund Sharp as a sole proprietorship. The firm changed its name to Johnson, Stokes and Master in 1890. In 2008, JSM combined with Mayer Brown to become Mayer Brown JSM. The firm dropped the JSM name in 2018, changing its name in Asia to Mayer Brown. However, it was announced in May that JSM would be de-coupling from Mayer Brown to separate the Hong Kong partnership from the international practices. During this temporary association, JSM and Mayer Brown Hong Kong will treat themselves as one firm for the purpose of professional rules of conduct relating to confidentiality and Johnson Stokes & Master reborn as Mayer Brown HK split comes through Your monthly need-to-know conflicts of interest, according to the firm’s statement. JSM’s new management committee is led by senior partner Terence Tung, alongside commercial managing partner Hannah Ha, dispute resolution managing partner Geoffrey Chan, and real estate managing partner Keith Cheung. With over 120 lawyers, including 40 partners, JSM aims to focus on sectors critical to Hong Kong’s role as a “super-connector” between mainland China and global markets. The firm will maintain Mayer Brown’s representative offices in Beijing and Shanghai, as well as an intellectual property agency office in Beijing. JSM’s strategy involves leveraging its experience in high-growth sectors, such as cybersecurity, ESG, insurance, private capital, and technology, while maintaining its traditional strengths in banking, finance, real estate, and construction. Mayer Brown, meanwhile, will have about 10 partners in Hong Kong led by capital markets partner Thomas Kollar. It currently also has offices in Singapore and Tokyo. Media reports have suggested that the firm’s Hanoi and Ho Chi Minh City branches will become a part of JSM following the split. Quote Unquote “Whilst we have always been known as ‘孖士打’ in Hong Kong, it is now the right time to build upon this important legacy to establish a new direction for the Hong Kong partnership as a leading independent law firm, responsive to the challenges and opportunities our clients navigate today.” Terence Tung, Johnson Stokes & Master
4 Asian Legal Business | December 2024 The Briefs New York-based law firm Paul, Weiss, Rifkind, Wharton & Garrison has confirmed to ALB that it will close its Beijing office by the end of 2024. According to records kept by ALB, it will become the 13th U.S. law firm this year to scale back its China operations. When it established its Beijing office in 1981, Paul, Weiss was one of the first foreign law firms to enter the mainland market. In recent years, it has maintained a lean presence in the PRC, its office comprising partner Greg Liu, counsel Jack Sun, and associates Mavis Feng and Cedric Wang. Liu has worked at Paul, Weiss for nearly 22 years, but the firm has yet to reveal whether he will stay with the firm. According to information from the Hong Kong Law Society website, Liu is also registered with the firm’s Hong Kong office. Following this decision, Paul, Weiss will retain only its Hong Kong and Tokyo offices in Asia. The firm told ALB: “We remain committed to having a strong presence across Asia, and will continue to provide the highest-quality service to our clients in all of our global offices.” Paul, Weiss began its journey in China with an office at the Beijing Hotel. Its founder, Jerome A. Cohen, who also established Harvard’s East Asian Legal Studies Center, led the firm in contributing to numerous historic and cutting-edge transactions in China. The firm’s practice areas in China have included M&A, PE/VC, outbound investment, inbound investment, capital markets, corporate and project finance, restructuring, and internal investigations. Jamie Horsley, the first managing partner of Paul, Weiss’s China practice, once remarked: “Since the early days of China’s ‘Reform and Opening’ and throughout the vagaries of the U.S.-China relationship, Paul, Weiss lawyers have helped clients navigate the twists and turns of law, the economy and politics. Paul, Weiss will continue to serve as a bridge connecting businesses, individuals and other clients in the U.S., China and elsewhere.” Currently, Paul, Weiss’s Hong Kong office comprises eight legal professionals, including two partners and one counsel. The announcement of its Beijing office closure comes shortly after Wilmer Cutler Pickering Hale and Dorr said it would close its 20-year-old office in the Chinese capital, and Skadden, Arps, Slate, Meagher & Flom cited “shifting market dynamics” when it said the same month that the firm would close its Shanghai office. Reed Smith, Perkins Coie, Dechert, Morrison & Foerster, and Sidley Austin are among other major law firms that have said they would close offices in Shanghai, Beijing or Hong Kong since the spring. Paul, Weiss, which once led U.S. firms’ China charge, becomes latest domino to fall In the news 1 Japanese law firm Mori Hamada & Matsumoto (MHM) is set to open its second U.S. office in the San Francisco Bay Area. The office will be led by corporate partner Mikito Ishida, who has experience working with startups, venture capital, private equity, and cross-border M&A. Ishida will be joined by San Francisco-based M&A partner Stephen Overton. MHM launched its New York office in September 2023. 2 W&H Law Firm has become the latest mainland Chinese legal practice to establish a presence in Hong Kong. The Hong Kong branch becomes the firm’s 50th office globally. While the vast majority of W&H’s locations are spread across mainland China, the Hong Kong office joins the firm’s sole international outpost in Tokyo. There are now 32 PRC law firms operating as foreign law firms in the city. 3 Indian law firm Trilegal has announced a partnership with AI platform Lucio. The collaboration aims to implement AI-powered solutions to automate routine tasks and improve efficiency in legal services. In a release, Trilegal partners have stated that this move will enhance service delivery and client experience while maintaining data security and confidentiality.
5 Asian Legal Business | December 2024 The Briefs Malaysia’s data centres prompt firms to bolster regulatory expertise Malaysia is rapidly positioning itself as a premier destination for data centres in Asia and potentially worldwide. The country’s strategic location, particularly the border city of Johor Bahru, has attracted substantial investments from global tech giants such as Google, Nvidia, and Microsoft, signalling a transformative phase in Malaysia’s digital infrastructure landscape. To foster this growth while maintaining control, Malaysia has implemented a comprehensive legal framework coupled with attractive incentives. Christopher & Lee Ong (CLO) partners Chor Jack and Leong Li Sze highlight the role of the Malaysia Digital Economy Corporation (MDEC). “The MDEC has introduced an incentive scheme for Malaysia Digital (MD) status companies to apply for certain incentives under the MD Bill of Guarantees, such as income tax exemption, investment tax allowance, foreign knowledge workers quota and passes, exemption from local ownership requirements and flexibility to source capital and funds globally.” However, foreign entities must navigate a complex regulatory environment. Key considerations include foreign investment requirements, land and building approvals, environmental regulations, utility procurement, telecommunications licensing, and data privacy and cybersecurity compliance. Despite Malaysia’s welcoming stance on foreign investment, certain restrictions persist. Natalie Lim and Tan Wei Xian, partners at Skrine, point out specific ownership limitations under the Communications and Multimedia Act 1998 (CMA) for cloud service providers and data centre operators. In addition, “Foreign acquisition or leasing of land might necessitate consent from state authorities and the Economic Planning Unit, particularly if the property value exceeds 20 million ringgit ($4.5 million) or if the acquisition leads to a dilution in Bumiputera ownership,” they add, using the term used to describe Malays and other indigenous ethnic groups in Malaysia. One of the most notable legal challenges arising from the rapid expansion of data centres in Malaysia is related to land use and environmental compliance. The industry’s high energy consumption impacts the country’s net zero targets, while land use and development planning vary by state. “Cognisant of these various issues, the Malaysian government has recently approved the adoption of the Data Centre Planning Guidelines (GPP) to standardise and streamline the application and planning approval process for data centre development,” note Chor and Lim Siaw Wan, head of projects & constructions at CLO. The Malaysian government also announced that it is in the process of finalising sustainable development guidelines for data centres to mediate any potential environmental-related concerns. Apart from that, Lim and Tan highlight electricity supply-related requirements as another area of attention. They suggest that data centre operator engage with Tenaga Nasional Berhad (TNB), the electricity provider of Malaysia, prior to finalising investment decisions to ensure sufficiency of continuous supply of energy. Another key consideration is data protection and cybersecurity compliance, particularly given the sensitivity of data stored on the AI and cloud infrastructure. “Heightened scrutiny would apply for the provision of data storage and cloud services to regulated sectors such as financial services and storage of data for government agencies,” say Lim and Tan. Right now, data centre operators must adhere to various cybersecurity and data protection regulations, including the Personal Data Protection Act 2010 (PDPA), the Cyber Security Act 2024, and security standards prescribed under the CMA. “Additional requirements may also apply depending on the specific industry. For instance, the Central Bank of Malaysia (BNM) has issued several mandatory policy documents which contain specific requirements on the use of cloud services,” add Lim and Tan. Lawyers also note that enforcement authorities must consider that customers, which are data controllers, may be located outside Malaysia and not subject to PDPA regulations. “Clear divisions between the responsibilities of the data centres in Malaysia, and the customers of the data centres (who may or may not be resident in Malaysia) will need to be made in order to determine the reach of the applicable data protection laws and applicable rules relating to cross-border data transfers,” say Deepak Pillai, head of TMT, and Yong Shih Han, TMT partner at CLO. “Malaysian law firms must adapt and bring value-added services to the table, by understanding the unique legal challenges, establishing specialised legal expertise and industry-specific practice groups, and positioning themselves as thought leaders,” say Pillai and Yong.
6 Asian Legal Business | December 2024 Is the takeover battle of Fuji Soft rewriting the M&A rulebook in Japan? Japan has been navigating a slew of market changes in recent years as the country’s corporate reforms move ahead with full steam. While the dearth of M&A persists in other major Asia hubs, Japan’s historically conservative dealmaking sphere is witnessing a boom in activity. This evolving picture has presented a golden window for international private equity firms to swoop in and stake their claims in Japanese corporations. The recent clash between KKR and Bain Capital over a $4 billion buyout offer for software developer Fuji Soft has highlighted a significant shift in Japan’s corporate takeover landscape under ongoing corporate reforms and moving market conditions. 1 What potential vulnerabilities have been revealed? For over a year, global PE titans KKR and Bain Capital have been engaged in what was described as an “allout bidding war” to gain control of Fuji Soft, the Japanese software company long pressed by its largest shareholder to go private. In the latest development, Fuji Soft approved KKR’s proposal of 9,451 yen ($63) a share – 1 yen higher than Bain’s offer and decisively influenced by two activist shareholders. Previously, Fuji Soft’s board had been maintaining its backing for KKR’s long-standing bid of 8,800 yen, or $59, a share, even after Bain countered with a higher offer. Bankers and investors are poring over the case for novel takeover templates, while lawyers noted new strategies that are challenging long-held norms in Japan’s legal offerings in corporate finance legal market. Makiko Ushijima, of counsel at Jones Day’s Tokyo office, notes that one of the “biggest fears” in the Japanese boardroom is realising Japan’s relatively low threshold for squeeze-outs compared to other jurisdictions, including Europe. “Even though the acquirer is unlikely to obtain 90 per cent at the end of the tender period, there is another statutory venue to squeeze out minority shareholders entirely,” says Ushijima. The Companies Act of Japan provides a de-facto squeeze-out process through share consolidation or mandatory call options, which a two-thirds shareholder vote can approve. This mechanism, originally not intended for squeezeouts, has now become a powerful tool for acquirers. Ushijima believes Japanese companies are now running higher risks of becoming targets of full takeovers. As a result, potential acquirers may now focus more on reaching this crucial one-third mark early in their takeover attempts. 2Is it simply a bidding war on price? While the battle for Fuji Soft might appear to represent a “straight bidding war,” it reveals a more nuanced shift in Japan’s M&A dynamics, according to Ushijima. Japan’s Corporate Takeover Guidelines issued by METI in August 2023 emphasise that offer price is particularly important for boards to consider in full, cash-based takeovers. However, the Fuji Soft case demonstrates that in partial takeovers, price may not be the decisive factor “as long as one bidder secures one-thirds of shareholder votes at the outset” and occupies de-facto blocking position. “Even though another bidder offers a better price, the board may not agree to a ‘partial’ takeover, and the price is not necessarily a decisive factor in bidding war,” says Ushijima. “The focus would be shifted to tactful strategy to secure such threshold with certainty.” Further, the alliance between KKR and an activist shareholder has also caught the attention of private equity firms operating in Japan. In August, KKR announced a tender offer to take Fuji Soft private after securing a deal with Singapore-based 3D Investment Partners. This partnership represents a departure from the traditional market-check auctions typically conducted by target companies themselves. 3What risks do foreign investors face? For foreign investors, lawyers note that the Fuji Soft case has highlighted some of the complexities and potential lack of clarity in Japan’s takeover processes. For instance, the use of multiple pre-tender offer announcements, which are common in Japan but outside the statutory tender offer process, can be confusing for international investors unfamiliar with local practices, according to Ushijima. This lack of clarity extends to understanding when and how target company boards are required to respond to takeover attempts, and when shareholders can make informed choices between competing bidders. As such, “Foreign investors might have a difficult time fully understanding the decision-making process of the board in a timely manner. While the Financial Services Agency issued the Disclosure Guideline for Takeover in October 2024, which in part addressed this pre-TOB announcement, we expect further clarities on this issue in the near future,” says Ushijima. The Briefs EXPLAINER
7 Asian Legal Business | December 2024 Aoife Griffin Leaving: N/A Going to: David Cameron Law Office Practice: Family, Employment, Immigration Location: Hong Kong Position: Partner Pallavi Kanakagiri Leaving: Claypond Capital Going to: Argus Partners Practice: PE/VC, M&A Location: Bengaluru Position: Partner Ittirote Klinboon Leaving: Chandler MHM Going to: Rajah & Tann Thailand Practice: Shipping and Insurance Location: Bangkok Position: Partner Rob Palmer Leaving: Ashurst Going to: Hogan Lovells Practice: Disputes Location: Singapore Position: Partner Albert Li Leaving: Koo, Li & Partners Going to: DeHeng Law Offices Practice: Corporate Location: Hong Kong Position: Partner G Madhusudhana Leaving: Lexplexus Going to: IndusLaw Practice: Real estate Location: Bengaluru Position: Partner Kok Jin Ong Leaving: A&O Shearman Going to: Ashurst Practice: M&A Location: Singapore Position: Partner Samit Dilip Shukla Leaving: DSK Legal Going to: Trilegal Practice: Real Estate, Disputes Location: Mumbai Position: Partner Paul Tan Leaving: Gibson Dunn & Crutcher Going to: One Essex Court Practice: Disputes Location: London Position: Counsel, Arbitrator Raditya Anugerah Titus Leaving: Makarim & Taira S Going to: Batavia Advocatorum Practice: Disputes Location: Jakarta Position: Partner Arthur Tso Leaving: DLA Piper Going to: Reed Smith Practice: Capital Markets Location: Hong Kong Position: Partner Helen Wang Leaving: Mayer Brown Going to: CMS Practice: Funds Location: Hong Kong Position: Partner Jang Hyuk Yeo Leaving: Greenberg Traurig Going to: DLA Piper Practice: Corporate Location: Seoul Position: Partner Global law firm Hogan Lovells has hired international arbitration expert Rob Palmer as a partner from rival Ashurst to boost its dispute resolution practice in Southeast Asia. Palmer, a former managing partner of Ashurst’s Singapore office, brings experience in energy, construction, and infrastructure disputes across the Asia-Pacific region. He has been based in Southeast Asia since 2003. Palmer has conducted arbitrations before arbitral institutions such as the SIAC, AAA, ICC, LCIA, KLRCA/ AIAC, TAI, and BANI. “Rob’s reputation as one of the leading arbitration lawyers in Singapore and his deep understanding of the Southeast Asia market will be invaluable to our clients,” said Biswajit Chatterjee, office managing partner of Hogan Lovells Singapore. With Palmer’s addition, Hogan Lovells now has seven partners in its Singapore office. The firm recently experienced the departure of corporate partners Stephanie Keen and Sylvia Taslim, who left to join O’Melveny. The Briefs APPOINTMENTS
8 Asian Legal Business | December 2024 DEALS $5 bln Aster DM Healthcare’s merger with Quality Care India Deal: M&A Firms: Cyril Amarchand Mangaldas, JSA Advocates & Solicitors, Trilegal Jurisdictions: India, UAE The landmark merger between Aster DM Healthcare and Quality Care India represents a pivotal moment in India’s healthcare consolidation landscape. Valued at $5.08 billion and backed by private equity giants Blackstone and TPG, this transaction positions the newly formed Aster DM Quality Care Limited as a formidable player in the Indian hospital sector, ranking third behind industry leaders Apollo Hospitals and Manipal Hospitals. The deal epitomises the ongoing transformation in India’s healthcare market, characterised by strategic consolidation and aggressive expansion. With deal activity in the sector reaching $4.1 billion—a striking 57% year-on-year increase—investors are signalling robust confidence in the industry’s growth potential. The strategic rationale is clear: capitalise on burgeoning healthcare demand, particularly in tier-2 and tier-3 cities where population growth and increasing healthcare accessibility are driving market dynamics. The hospital industry emerges as the epicentre of this M&A momentum, with private players projecting significant capacity expansion—approximately 30,000 new beds at an estimated $392 million capital outlay over the next five years. This merger underscores a strategic blueprint for growth: Consolidation, geographical diversification, and enhanced service capabilities. $645 mln Kioxia’s IPO Deal: IPO Firms: Anderson Mori & Tomotsune; Davis Polk & Wardwell; Mori Hamada & Matsumoto; Simpson Thacher & Bartlett Jurisdiction: Japan $645 mln Afcons’ IPO Deal: IPO Firms: AZB & Partners; S&R Associates Jurisdiction: India $530 mln Goldman Sach’s acquisition of Nihon Housing Deal: M&A Firm: Nishimura & Asahi Jurisdictions: Japan, U.S. $515 mln Waaree IPO Deal: IPO Firms: Hogan Lovells; JSA; Khaitan & Co Jurisdiction: India $1.7 bln RMZ Group’s joint venture with Colt Data Centre Services Deal: M&A Firms: Khaitan & Co; Trilegal Jurisdiction: India $1 bln Zomato’s QIP Deal: ECM Firms: Cyril Amarchand Mangaldas; Latham & Watkins; Shardul Amarchand Mangaldas & Co Jurisdiction: India $890 mln Varun Beverages’ QIP Deal: ECM Firms: Hogan Lovells; Khaitan & Co Jurisdiction: India $750 mln SF Holdings IPO Deal: IPO Firms: Clifford Chance; CM Law Firm; Grandall Law Firm; King & Wood Mallesons; Herbert Smith Freehills Jurisdictions: China, Hong Kong The Briefs
9 Asian Legal Business | December 2024 The Briefs A Q&A with Eric T. McCrath, Chair, Morrison Foerster As Chair of Morrison Foerster with its multiple offices across the globe, how do you leverage the firm’s regional strengths to provide comprehensive solutions for clients with cross-border needs? Eric T. McCrath, Chair, Morrison Foerster: Ensuring we consistently deliver for our clients is at the heart of everything we do. This is borne out through our commitment to clientcentric growth and investing in our strengths, so Morrison Foerster has the right expertise in the right place, when and where our clients need us. This approach allows our teams to “follow the sun,” with deep strength across multiple practices in Asia, Europe, and the U.S., and ensures that we are well-placed to advise on our client’s global needs. At Morrison Foerster, we are committed to operating through a One Firm approach, breaking down geographic barriers as much as possible, with a steadfast focus on global connectivity. While clients may experience challenges locally, we know the issues and opportunities our clients face are increasingly global and cross-border. Our attorneys, wherever they are, are attuned to complex, global legal and regulatory landscapes, and work seamlessly to share knowledge and best practices to support our clients in all of their most complex cross-border challenges. What is your vision for Morrison Foerster’s growth and development in the Asia-Pacific region over the next five years, and how does this align with the firm’s global strategy? McCrath: Morrison Foerster has a longstanding commitment to Asia—we celebrated 40 years in Asia in 2023, and it remains a key part of the firm’s global strategy. Our general approach is to grow where our clients are and where they need us, and we know that our clients continue to need legal support as they seek to capitalise on opportunities in the region while they also confront challenges across the dynamic and evolving markets in Asia. We are always looking to invest in talent to help deliver for our clients, particularly around our core practices and industry strengths. We want to be a destination firm for our clients’ most challenging legal issues, most critical disputes, and most significant transactions. For this reason, we are always exploring strategic investment opportunities to bolster and strengthen our presence in Asia, to expand our capabilities and maintain our best-in-class client service in the region. In an increasingly competitive legal market, how does Morrison Foerster differentiate itself from other international law firms, particularly in terms of its service offerings and client relationships across different regions? McCrath: Morrison Foerster is a global law firm that leans into its core values, and we keep them at the centre of everything we do, including our longstanding commitment to diversity and inclusion, which we believe leads to better client service and outcomes. This, alongside our commitment to exceptional client service, sees our clients in Asia turn to Morrison Foerster to handle its business-critical mandates, which are reflective of our technical legal skill and market awareness as well as our appreciation of local customs and cultures. This powerful combination sees our team consistently deliver for our clients. Q&A with Dan Levison & Tabitha Saw, Co-Managing Partners, Morrison Foerster Singapore You were recently announced as the new leaders of Morrison Foerster’s Singapore office. Can you share your strategy for further enhancing the office’s capabilities and positioning it as a go-to firm for high-quality legal work in Southeast Asia? Dan Levison & Tabitha Saw, Co-Managing Partners, Morrison Foerster Singapore: Throughout our 40+ years in Asia, our strategy has consistently focused on our people and meeting our clients’ evolving needs. As the complexity of our work has increased, investing in our people has positioned us as one of the best-in-class international law firms in Asia. We understand the unique needs of our Southeast Asia clients, and tailor our services to highgrowth sectors such as Technology, Private Equity, Real Estate, Life Sciences, Financial Services, Energy, and Energy Transition. What steps are you taking to ensure that the Singapore office continues to attract and retain top talent? Levison & Saw: By developing talent, fostering growth, and maintaining a collaborative and inclusive environment, we equip our teams to address complex client needs and deliver innovative, highquality, tailored solutions. We attract top candidates by positioning the firm as an industry leader, offering superior professional development opportunities, mentoring, and an exceptional culture. Our hiring processes are designed to identify high-potential candidates who align with our culture and values, ensuring the right blend of technical expertise and cultural fit. We offer the highest quality work and exposure to diverse projects, including pro bono and diversity and inclusion initiatives. Additionally, we empower our lawyers at all levels to build strong client relationships, ensuring they understand unique needs and respond quickly to changing demands. This approach fosters flexibility, responsiveness, and efficiency.
10 Asian Legal Business | December 2024 Hong Kong legal recruitment market to continue strategic evolution into 2025 As 2025 approaches, the Hong Kong legal market is reflecting on a year of cautious resurgence and strategic transformation. The 2024 recruitment landscape was characterised by a gradual but meaningful recovery, marked by selective hiring, targeted practice group expansions, and a rollercoaster of market dynamics. The year unfolded in distinct phases: A tentative January restart saw recruitment activity begin to pulse, with firms exploring talent in litigation, funds, and financial services. By March, a steady recruitment rhythm emerged, with a premium on candidates possessing robust bilingual skills and at least oneyear of post-qualification experience. The summer months brought a more pronounced uplift, particularly in transactional practices like M&A, private equity, and leverage finance. As October rolled in, the market showed increased vitality, with partner-level movements and strategic repositioning becoming the norm. The ongoing recalibration of the legal market, marked by the closure of 14 U.S. law firms in mainland China since mid-2023, continues to reshape talent strategies. “The majority of the law firms closing in China, however, have confirmed that they remain very committed to Asia and are focusing their attention on other offices in the region whether that be in Hong Kong, Singapore, Seoul and Tokyo,” says Camilla Worthington, managing director of recruitment firm Worthington Legal. U.S. law firms have had to adapt to market headwinds, moving to lean associate structures while leveraging regional opportunities across Asia. This has given the PRC and smaller UK firms the opportunity to attract top talent from American rivals. “Many partners are attracted, in particular, by the model at PRC firms, which often gives them greater autonomy over fees, enabling them to offer the same service to their clients but at a lower cost,” Worthington says. Consequently, language remains a critical differentiator in hiring strategy. “There has now for many years been a strong requirement for lawyers in Hong Kong to have strong Mandarin-language skills and this is only going to continue,” Worthington emphasises. The Greater Bay Area (GBA) Legal Professional examination has become a key credential, enabling lawyers to strengthen their competitiveness and tap into the vast potential of the GBA market. The practice area landscape in 2024 was anything but static. Regulatory and dispute practices were in high demand. “Disputes teams are busy, and firms are interested in candidates that are versatile and able to work across commercial litigation, regulatory disputes, as well as arbitration matters,” Worthington explains. While sectors like M&A and leverage finance showed promising signs of recovery, capital markets showed slow growth, but Worthington sees positive signs in the future. “We are starting to see an uptick in workflow, and we anticipate that if it continues, firms may need to start to rebuild teams, albeit slowly,” she says. Technological disruption emerged as a defining theme of 2024. All lawyers, whether in-house or within law firms, are going to need to embrace the use of generative AI, Worthington predicts. “It doesn’t mean the demise of the profession,” Worthington asserts, “just a transformation in the way certain tasks are undertaken to drive efficiency and productivity.” Law firms have invested heavily in AI literacy, developing comprehensive upskilling programs and establishing robust risk frameworks in order to remain competitive. “As client expectations evolve and clients are becoming more aware of the benefits of legal technology, they are going to want to see firms demonstrate how they are using technology to generally enhance service delivery,” Worthington says. As a result, recruitment strategies underwent significant evolution. “With the increase in technology and firms working with leaner teams,” Worthington notes, “there is greater pressure on candidates to demonstrate not just technical skills, but strong interpersonal abilities and the capacity to become trusted advisors to clients.” The traditional allure of high salaries continued to wane while work-life balance, personal growth, and meaningful career trajectories took centre stage. “As has been the case for many years, mid-level candidates continue to want to move in-house, seeking greater stability and work-life balance together with less pressure from billing targets,” Worthington explains. As we enter 2025, the legal market appears poised for cautious optimism. The year promises continued selective hiring, focusing on versatile lawyers who can navigate complex technological and regulatory landscapes. Firms are expected to prioritise candidates who can demonstrate adaptability, technological proficiency, and cross-border expertise. Worthington explains that due to limited number of roles in the Hong Kong market against the large number of available candidates, securing a role in a top-tier firm is incredibly competitive. “Candidates should expect a rigorous interview process that will look at their analytical skills, strategic approach as well as the ability to communicate clearly and concisely in both English and Chinese. Written tests and case studies are becoming the norm,” she says. The Briefs
11 Asian Legal Business | December 2024 Brought to you by Worthington Legal Alternative Careers for Lawyers in Private Practice Many lawyers in private practice reach a point where they reassess their pursuit of partnership, finding the traditional role of fee earner less appealing. While in-house legal positions are a common alternative, they aren’t suitable for everyone. Fortunately, law firms offer various roles that provide fresh perspectives, growth opportunities, and a break from the conventional demands of time recording and billing. These roles often come with improved work-life balance, stable hours, and more flexible arrangements, including part-time options and remote work. Knowledge Lawyer/Professional Support Lawyer (PSL) Knowledge management has gained greater prominence in law firms in recent years. PSLs now help drive efficiency, enhance workflows, and non-qualified professionals, often part of global teams working across various jurisdictions. In Asia we have seen many firms favour individuals that can cover a broader role which often covers data privacy, employment law, conflicts as well as SRA and Law society regulations. Strong communication skills are essential for collaborating with partners and managing compliance obligations effectively. Legal Technology The use of legal technology is growing in importance as firms seek to enhance efficiency, lower costs and improve service delivery for clients. Lawyers transitioning into legal tech roles need a keen interest in technology and may require additional training. You will play a key role in the application of new technologies and the managing of external suppliers. Attorney Development and Learning With a focus on professional development, law firms are recognizing the benefits of having experienced lawyers in attorney development roles. Responsibilities include associate guidance and training, coaching and performance management. These professionals work to enhance the skills and career trajectories of lawyers, ensuring robust training and mentoring programs are in place. and support fee earners, evolving beyond their traditional specialised technical legal roles. In larger firms, multi-tiered knowledge teams exist, offering genuine career advancement opportunities. Responsibilities may include legal research, training, mentoring, delivering client seminars and business development. Initially prevalent in magic circle firms in Asia, the trend is expanding, with many firms recognizing the value of PSLs in supporting local teams. Legal Project Management Legal project management applies project management principles to legal service delivery, allowing lawyers to focus on substantive legal work. Project managers handle planning, cost management, and document oversight. As legal projects grow increasingly complex, skills in document management and legal technology become crucial. Emotional intelligence is vital for building relationships among stakeholders, and the demand for legal project managers is expected to rise across Asia. Risk and Compliance The primary role is to ensure compliance with professional standards, regulations and legislation and to mitigate risks for the firm. Compliance teams in law firms typically consist of qualified Camilla Worthington Founder/Managing Director camilla@worthingtonlegal.com Worthington Legal www.worthingtonlegal.com Sizzling valuations are no bar for Asia data centre deals as AI growth beckons (Reuters) Global investors are queueing up to invest in data centre operators in the Asia-Pacific either by buying stakes directly or via public offerings, unfazed by their rich valuations that are driven by demand for artificial intelligence-based services. Many industry executives say the regional data centres will continue to command high valuations due to the nascent nature of the industry and its growth outlook. Some, though, say a lack of robust infrastructure could cast a cloud on their outlook. Data centres house computer servers and equipment that companies use to process and store data. A valuation benchmark for the sector was set in September when a consortium led by alternative asset manager Blackstone agreed to buy Australian data centre group AirTrunk for an implied enterprise value of over A$24 billion ($15.58 billion), or over 20 times the target’s forward core earnings. The process to sell a minority stake in Indonesian data centre NeutraDC, for example, has attracted interest from Singapore Telecommunications (Singtel) and BDx Data Centers. A sale of a roughly 20 to 30 percent stake in the data centre arm of Indonesian state-owned communication company Telkom, which kicked off in October, could value the business at more than $1 billion, sources have said. Brokerage BRI Danareksa Sekuritas’ analyst Niko Margaronis said NeutraDC could be valued at more than 20 times core earnings, helped by factors including a capacity expansion plan to reach 500 megawatts by 2028 to 2030, from around 60 MW by end-2024. In another example, Australia’s HMC Capital said that strong interest from investors had led the company to upsize the IPO of its data centres business DigiCo REIT to A$2.75 billion. The new valuation benchmark for data centre deals compares with average market-wide multiple of around 16 times core earnings in the broader private infrastructure deals globally, according to asset intelligence company Realfin. The AirTrunk deal has propelled Asia Pacific to the top of the M&A league table in the global data centre market this year, with deal value totalling $17.03 billion, more than half of the global transactions, LSEG data showed.
12 Asian Legal Business | December 2024 Brought to you by CIETAC CIETAC Officially Launched the International Arbitration Cooperation Initiative 2024 At the China Arbitration Summit 2024 & China-MENA Arbitration Summit (the “Summit”) held on September 26, the China International Economic and Trade Arbitration Commission (“CIETAC”) officially launched the “International Arbitration Cooperation Initiative 2024” (the “Initiative”), an important achievement aimed at strengthening cooperation in the rule of law in international arbitration. Against the background of in-depth development of economic globalization, in order to effectively adapt to the new opportunities and challenges brought about by the changes of the times, strengthening international cooperation to promote the development of international arbitration has become a wise solution. On the one hand, the number of international arbitration cases has been on the rise in recent years, and strengthening international cooperation in arbitration is a realistic need for international economic and trade dispute resolution. Taking CIETAC as an example, the number of foreign-related cases accepted and the total amount in disputes have continued to grow, involving an increasing number of countries and regions. With a high level participation by foreign arbitrators and diverse procedural languages and applicable laws, CIETAC awards are widely recognized and enforced worldwide, fully demonstrating the practical need of deepening international arbitration cooperation. On the other hand, there is already a consensus within the arbitration community to strengthen international arbitration cooperation. In CIETAC’s key cooperation achievements related to the Belt and Road, such as the Beijing Joint Declaration of Belt and Road Arbitration Institutions and its Cooperation Mechanism, and Cooperation Mechanism on Law Ascertainment of Belt and Road Arbitration Institutions, as well as in the RCEP and ASEAN International Arbitration Summits, China-Latin America International Arbitration Forum, and China-Central Asia Arbitration Forum organized by CIETAC, both Chinese and foreign arbitration institutions have expressed active support, showing the strong will of the international arbitration community to deepen exchanges and strengthen cooperation. (Wang Chengjie, Vice Chairman and Secretary General of CIETAC, moderating the launching ceremony of the Initiative) Hence, CIETAC officially formulated the “International Arbitration Cooperation Initiative 2024” this year, and organized a dialogue between China, the Middle East and North Africa arbitration institutions on September 25 on the eve of the Summit to further discuss the text of the Initiative, which received a warm response and was unanimously adopted. The Initiative indicates that international arbitration is an indispensable dispute resolution mechanism for cross-border commercial disputes. In order to promote the development of international arbitration, the international arbitration community should strengthen their ties to collaborate. It is necessary to continuously adhere to fairness and justice, ensure the transparency and independence of arbitration; deepen the cultural exchange of arbitration, advocate open and win-win cooperation, actively seek judicial support, and strengthen the enforcement of cross-border awards. It is also necessary to work together to make good use of technological innovation, striving to achieve green arbitration, gather the strength of alternative dispute resolutions to improve the quality of arbitration services, and work together to train talents to solidify the foundation for future development. Up to now, the Initiative has gained the support and response of 30 international arbitration institutions, mainly from the Middle East and North Africa region. In the future, CIETAC will work with all parties to take the Initiative as a guideline, continue to play an important role in international arbitration, foster the vigorous exchanges on the rule of law, and jointly write a new chapter for international arbitration cooperation. CIETAC Tel: 010-82217788, 64646688 Fax: 010-82217766, 64643500 Email: info@cietac.org Website: www.cietac.org
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