26 Asian Legal Business | December 2024 Cover Story chose the city-state for its first overseas outpost. This move was driven by the increasing needs of “decoupling of supply chains” and a growing preference among clients for Singapore as a seat to resolve cross-border disputes. This trend highlighted one of the key practice areas that saw robust growth over the past year, as Singapore’s sound dispute resolution framework, renowned for its neutrality and institutional credibility, continued to attract complex international arbitration cases and cross-border legal matters. “We have seen, for instance, a slight diversification in the profile of clients,” says Sean Yu Chou, deputy managing partner at Big Four firm WongPartnership. “Russian parties affected by Western sanctions have sought advice on matters such as the application of Singapore law as the governing law of their contracts, and the migration of the agreed seats for arbitration to Singapore from traditional Western seats,” notes Chou. Singapore’s geopolitical neutrality was the secret sauce for the ADR bonanza witnessed by the city. “There’s been a decade-long secular shift to Singapore being perceived as a trustworthy, sophisticated and neutral legal hub,” says Thio Shen Yi SC, joint managing partner at TSMP Law Corporation. “Recent geopolitical shifts, as the world divides itself into different ‘trust zones’, amplify the need for these qualities, particularly neutrality.” The soaring demand for dispute resolution expertise, bolstered by the reassurance of the “Singapore brand”, gave star lawyers the impetus to break through the shackles of conflicts in full-service firms. Joining a raft of dispute boutiques was Sreenivasan Chambers, founded by veteran litigator Sreenivasan Narayan SC, who previously headed K&L Gates’ association firm in Singapore. Another example was Paul Tan, former head of arbitration for Asia at Gibson Dunn & Crutcher, who joined One Essex Court as international counsel and arbitrator. “In the disputes space, there is more disaggregation than consolidation,” says Thio. Driving this change were clients who became increasingly discerning in their selection of legal representation. Rather than engaging entire law firms, they began to display a growing trend of handpicking individual lawyers based on specific expertise. This became evident in international arbitration cases, where clients started assembling bespoke legal teams, says Thio. “Mid-sized firms need to build up relationships and connectivity in the region and beyond, building personal goodwill and trust, instead of institutional presence.” As the domestic market grew fragmented and competitive, many smaller local firms found themselves compelled to enhance their cross-border capabilities while seeking opportunities in overseas markets. Mid-sized Singapore firm PDLegal, having already opened an office in Thailand in 2023, entered into a Formal Law Alliance with Liverpool-headquartered Hill Dickinson. “We can link our clients up seamlessly. And they trust that because we are in an alliance with Hill Dickinson. They are comfortable to engage our services,” says Gerard Quek, deputy managing partner at PDLegal. Also driving firms’ regional expansion was a notable uptick in international clients requesting guidance on navigating the intricacies of conducting business in Southeast Asia, as the evolving geopolitical landscape prompted many to reassess their global business strategies and legal arrangements. Securing a portion of that cross-border business could hinge on whether the partner maintains a direct relationship with the client, a strategy that firms with leaner teams could be better placed to execute. The obstacles, however, are also unique. “You’re not a brand and firm known outside of Singapore. And there are regulatory barriers. These are things that we cannot control but can strive to overcome,” says Quek. International law firms, with their sprawling global networks, appeared to have the upper hand in capitalising on Southeast Asia’s rapid economic transformation. However, the recent closure of U.S. tax firm Butler Snow in Singapore again served as a sobering reality check in the face of the growing risk of complacency. Another notable example was McDermott Will & Emery. In 2021, it opened a Singapore office in a bid to relaunch its physical Asia presence, and by 2022, it had lured over at least seven partners from rival international firms. That resident partner count had dropped to just one by early 2024 following a string of departures. It showed that even with upbeat vision, market potential, and government cheerleading, the Singapore legal market comes with its own set of idiosyncrasies, practical complexities, and a surprisingly modest appetite. Expansionist dreams, therefore, might need to be tempered with a dash of local realism. “2025 is going to be a volatile year,” says Thio. “There will be a greater focus on profitability rather than absolute growth. The challenge is balancing the competing tensions of law as a business, and law as a calling.” (SW) Japan: Pole position As Hong Kong’s appeal waned and Singapore played it characteristically safe, Japan emerged as the new darling amongst international investors. And it was the very factor that once held Japan back - decades of sluggish economic growth – that made it a compelling draw. Japan’s prolonged period of ultra-loose monetary policy, coupled with a persistently weak yen, had created favourable financing conditions for foreign investment. This economic climate allowed investors to acquire undervalued assets at attractive prices, bringing a significant shake-up to Japan’s traditionally conservative M&A landscape. According to LSEG data, there were 154 cross-border M&A deals in Japan by December this year - a whopping 921 percent jump year-on-year - with a total deal value of $81.9 billion. The
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