MCI (P) 041/02/2020 issn 0219 – 6875 KDN PPS 1867/10/2015(025605)

ASIA’S BEST LAW FIRMS TO WORK FOR EMPLOYER OF CHOICE

Indonesia’s e-court streamlines the disputes process

Remote working raises cybersecurity concerns

We showcase India’s best small firms ALB Indonesia In-House Legal Summit 2020 October 6 - Jakarta

Asian Legal Business is proud to present the 7th run of the ALB Indonesia In-House Legal Summit, which aims to provide with valuable insights into pertinent in-house legal issues, enforcement trends and significant regulatory developments. Join us and reach out to the region’s top decision-makers, leading senior-level corporate counsel and private practice lawyers.

Summit Agenda at a Glance • Understanding Indonesia’s New Regulation On Electronic • The Real Cost of Corporate Compliance in Indonesia (Network and Information) Systems • Case Study: Responding to Regulatory Investigation • Cross-Border M&A – Key Drivers, Challenges and Opportunities • Gift or Bribe? Drawing The Line Between Legitimate And Corrupt • Fine-Tuning Your Dispute Tactics: Strategies That Work Corporate Hospitality • Contracting On The Internet: An In-Depth Look on “Click Wrap” • Stepping Up Your Game: Guide For The Modern General Counsel Contracts *Summit agenda is subject to change up until the event date

Get In Touch With Us Today Sponsorship Opportunities: Amantha Chia, [email protected], (+65) 6870 3917 Speaking & Program Enquiries: Marianne Tocmo, [email protected], (+632) 8789 5095 For more information, visit: https://www.legalbusinessonline.com/ihs/idihls2020 To register for the summit, visit: https://gevme.com/idihls2020

Presenting Sponsor Associate Sponsor Presented By CONTENTS

36 India Firms to Watch

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to streamline the 28 36 claim this as force COVER STORY process. Lawyers Done deal India Firms to Watch majeure event? asses the impact it is With Brexit now out This year’s list of 22 having. of the way, Asian India Firms to Watch 42 ALB Employer of companies may features a diverse Spreading the word Choice 2020 Plus: have to review their group. What unites As Chinese law Last year was widely - Prepared for investment and trade them is strong firms continue to considered a tough dispute, before the strategies to adapt. commitment to client expand in size and year, with resources dispute (A glance service and a great geographies, they shrinking, job on necessary 30 deal of ambition. have begun to realise scopes expanding, evidence in civil Security in a the importance an increasingly litigation in remote world Plus: of marketing in competitive Indonesia) As the global - Lex Consult profile attracting and marketplace to - How e-court coronavirus outbreak retaining clients and contend with and process is causes employees 38 recruiting talent. new regulations to impacting trial everywhere to start Green ambitions navigate. But this proceedings in working remotely, the Southeast Asia’s year is proving to be Indonesia risk of cybersecurity largest economy BRIEFS even more difficult, breaches is has prioritised new as global pandemic 20 heightened. renewable energy 3 spreads, disrupting Mediation central legislation that could The Briefing life and work. At The Singapore Plus: be a chance for the this time, a good Convention on - FTI Cybersecurity country to move 4 employer is more Mediation, set to profile away from coal with Forum critical than ever. come into force in renewable energy By Elizabeth Beattie September this year, 34 resources. 6 is being celebrated as White-collar spike Explainer a boon for Singapore’s Economic slowdowns Plus: FEATURES cache as a dispute almost inevitably - Renewable sources 7 resolution hub, as bring a jump in of energy in Deals 16 well as something white-collar crimes. Indonesia: shaping Enter the e-court that breaks new With the coronavirus the future of 8 Indonesia’s e-court ground in the global outbreak raging, renewable energy Appointments system was launched mediation landscape. companies need to - The outbreak in 2018, as the justice be more vigilant. of COVID-19 is 13 system moved to Plus: effecting deliveries Q&A tackle its notoriously - Paradigm shift in Plus: of contractual sluggish court dispute resolution - The reality of liabilities; can the 14 system and sought rules compliance contractual parties League Tables

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 1 A supportive employer is critical in a time HEAD OF LEGAL MEDIA BUSINESS, like this. Even before the emergence of COVID, which ASIA & EMERGING MARKETS Amantha Chia has the potential to slash legal work in the short term, [email protected] it was tough to be a junior employee in a law firm. The twin forces of technology and heightened competition MANAGING EDITOR have ensured that many law firms, chasing short-term Ranajit Dam profits, are less inclined to invest in their associates. For [email protected] the associates themselves, thus, getting a start at a pres- JOURNALIST tigious law firm is becoming difficult, but once they’re Elizabeth Beattie in, difficult hours, a lack of meaningful work and little to [email protected] no development of skills ensures that they are looking at alternatives like in-house roles or flexible work – that EDITORIAL ASSISTANT is, if they stay on in the legal profes- Aparna Sai [email protected] sion at all. From a law firm’s perspec- tive, skimping on the development of COPY & WEB EDITOR younger lawyers is a myopic strategy. Rowena Muniz A law firm is different from a company [email protected] in the sense that relationships matter SENIOR DESIGNER that much more; if a partner exits, retires John Agra or is for some other reason unable to [email protected] continue practice, the relationship with the client in many cases dies out. It is TRAFFIC/CIRCULATION MANAGER just as important to build both bench Rozidah Jambari strength and prepare for succession, and [email protected] developing a core of strong, committed, SALES MANAGERS accomplished associates will help you do Amy Sim that. And this is where the key question Sales Director, SE Asia, India and Japan comes in – how can you ensure that (65) 6870 3348 people stay? Well, the answer starts at [email protected] the top. Law firm leaders need to first Felix Cheng Sales Manager recognise the importance of engage- (852) 2843 6943 ment. Enthusiasm skyrockets when they [email protected] create a positive environment, promote Krupa Dalal RANAJIT DAM helpfulness, value their staff and provide the resources Sales Manager Managing Editor, necessary for success. But more importantly, create a (91) 22 6189 7087 [email protected] Asian Legal Business culture that fosters empowerment and accountability Thomson Reuters which motivates people to find their own solutions and Jeremy Lim Sales Executive make a difference. This gives your lawyers a greater (65) 6870 3789 sense of ownership —one of the greatest professional [email protected] motivators. These will ensure they stay happy and Steven Zhao committed to your firm for many years to come. Account Manager (86) 10 6627 1360 [email protected] Yvonne Cheung Sales Director, Key Accounts and South China (852) 2847 2003 [email protected]

SENIOR EVENTS MANAGER Julian Chiew Asian Legal Business is available by subscription. Please visit www.legalbusinessonline.com for details. [email protected] 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. AWARDS MANAGER

MCI (P) 041/02/2020 Caryl Aquino issn 0219 – 6875 KDN PPS 1867/10/2015(025605) [email protected]

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2 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM THE BRIEFING: YOUR MONTHLY NEED-TO-KNOW

SG JUDICIARY TURNS TO VIDEO TO ENSURE SAFE DISTANCING As part of its measures to tackle the . COVID-19 outbreak, Singapore’s $4 15 judiciary will be enabling certain PERCENT court hearings to be heard via BILLION teleconference or video conference. Salary cuts for counsel and non-equity Pilots have been run for selected Global revenues of Kirkland & Ellis in 2019, making it the first law firm to pass the 30partners at U.S. law firm Arent Fox, hearings in the Court of Appeal $4 billion mark. Profit per equity partner according to website Above The Law. and High Court to be heard via Associates and staff are having their was up 3 percent to $5.2 million. salaries slashed by 25 percent, while videoconference, and more of such equity partner distributions are being hearings will be increased to reduced by 60 percent. include trials in the High Court. These measures are on top of IN THE NEWS existing steps that were recently imposed, such as limiting the number of lawyers per litigant, COVID HAMMERS M&A and marking out seats in both the State and Supreme Courts for A technology tool that enables ACTIVITY WORLDWIDE safe distancing. mark-ups of text for drafting has been launched by Clifford Chance Global mergers and acquisitions with the aim of reducing time activity plunged 28 percent in and increasing efficiency. the first quarter to its lowest level QUOTE UNQUOTE The CompareNow tool was since 2016, according to data launched by the Magic Circle firm’s from Refinitiv. Deal activity in “A SHOCKING DIVIDE legal tech innovation lab Create+65, the United States dropped by IS EVIDENT: WEALTHY in collaboration with Singapore- half to $252 billion in the first based startup Alpha LegalTech. three months from a year ago, PARTNERS ARE WORKING driving global volumes down to FROM HOME, WHILE THE $698 billion from $964 billion LOWEST-PAID, MOST in the first quarter of 2019. PRECARIOUS STAFF Asia volumes dropped 17 percent Jones Day has again been year-on-year to $142.9 billion. ARE BEING FORCED TO crowned the top law firm brand in However, Europe saw its deal COME INTO THE OFFICE. the U.S. for the fourth consecutive volume more than double to THIS IS AN OUTRAGE.” year by Thomson Reuters’ Acritas. $232 billion thanks to a handful The index is based on data of mega-deals clinched just weeks UK union Legal Sector Workers United compiled from Sharplegal 2019, before the virus started battering says COVID-19 is leading to “abuse” of a comprehensive study of the global the continent’s economies. the industry’s workers. legal market across 55 countries.

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FORUM PANDEMIC PREP It is becoming apparent by now that COVID-19 is a David Cho, Asia co-managing partner, Dechert once-in-a-century event, and as it sweeps across the This unprecedented situation is a learning experience for all. Whilst the management of a situation involving globe, businesses – including law firms – have been an infectious disease wasn’t prepared, Dechert has caught unawares. While firms have responded by conducted business continuity tabletop exercises maintaining work-from-home arrangements and for some years now to deal with major emergen- adjusting their protocols to minimise risks, it has also cies and disruptive incidents, as well as to mitigate highlighted to them the need to put in place plans for risks involving Dechert’s business, offices and its similar seismic events. personnel. Tabletop exercises give people confidence to deal with crises and enhance response capability. Having a plan is essential but ideally, the plan needs to be tested ahead of time to ensure its effectiveness. We regularly test our plans to make sure they are What lessons has the coronavirus fit for intended purposes. Dechert has adapted its outbreak taught your firm about existing business continuity plan to respond to this complicated situation. One can never know what having an infectious disease/ lies around the corner but being prepared puts us pandemic management plan in a much stronger position to deal with unknown contingencies. For example, preparedness exercises in place going forward? allowed us to react quickly to client situations amid the coronavirus outbreak. Dechert was also one of the first international law firms to implement a work-from-home arrangement, to aid in regional Philip Jeyaretnam SC, global vice-chair and containment. ASEAN CEO, Dentons Rodyk Our global and regional leadership teams continue Maria Woehr, senior public relations manager, to closely consult with public health and government Hogan Lovells authorities, and to follow the required action steps We have had to adapt our business to be able to and best practices as directed by these officials. As keep advising our clients, operate our firm, and the only global law firm operating in most of the keep our people safe. That started with travel JEYARETNAM countries where there is a significant outbreak of bans, then reducing meetings, and now almost all COVID-19, our priorities are to protect the health our people globally are working from home. We’ve of our 19,000+ colleagues and their families and dealt with issues such as hurricanes, storms and to support our clients around the world to manage floods before so have solid experience and plans the impacts of the virus. The global CEO of Dentons for remote working and collaboration already in is chairing a global pandemic preparedness task place. To respond to COVID-19, we’ve had to activate force to ensure we can be nimble and consider the those plans on a global basis. As events unfold in most up-to-date information from public health different countries/regions we continue to learn agencies and government authorities, share best from our experiences in each of those markets. CHO practices with our people around the world, and Communication is critical. We have tried to keep take the necessary actions to support clients as they up a steady flow of information to our clients and navigate business challenges created by COVID-19. people to explain how our response is evolving. The As we continue to serve clients during the COVID-19 strength of culture at an organisation is critical at pandemic, we have shifted operations in a limited a time like this. To tackle this significant challenge, number of more than 180 offices worldwide to a organisations need to bring their people and clients remote working status ensuring business continuity; together in a constructive, collaborative, and innova- our people in those offices are working seamlessly, tive way. We are problem solvers and we are applying and all other locations are operating as normal and those skills to our own business as much as to the WOEHR following best practices. needs of our clients.

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their stockholders should be alert. This increased vulnerability would suggest that boards should be prepared and educated about the possibility of share- holder activism,” he says. Among the measures that Kamiya says may be on the table include a review of fiduciary duties “in the activism context, a simulation exercise on how to respond to an activist and placing a shareholder rights plan on the ‘shelf.’” Kamiya adds that “under current Japanese company law, shareholders meetings must be held in person within three months of the fiscal year-end, but given the current circumstances, the People wearing protective face masks due to the outbreak of coronavirus disease (COVID-19) walk in front of Ministry of Justice has issued guide- the Giant Olympic rings at the waterfront area at Odaiba Marine Park in Tokyo, Japan, March 25, 2020, after the announcement of the Games postponement to 2021. REUTERS/Issei Kato lines for companies which are unable to do so in time. In any case, this situation will likely escalate companies’ efforts to use ‘hybrid’ shareholders meetings that A POSTPONED OLYMPICS AND A STOCK will allow some shareholders to virtu- ally attend or participate in the phys- ical meeting, following the guidelines MARKET CRASH: COVID-19 HITS JAPAN issued by the Ministry of Economy, Trade and Industry.” The 2020 Japan Olympics were set front, cartel cases have somewhat Of course, the postponement and to be a perfect opportunity for Japan, a subdued, and investigations on the cancellation of events are also likely to country renowned for its hospitality, to abuse of superior bargaining position continue in the coming weeks, says Otto, excel. With a tourism boom expected, appear to be on the rise. In addition, with this possibly to cause something of and surging global interest, expecta- data privacy and information protec- an influx of legal work. “Since the Tokyo tions were soaring. Fast forward a bit, tion-related compliance work continues Olympics have been postponed and and a global pandemic that is strug- to grow. The revised Civil Code with many other events cancelled or scaled gling to be contained has forced priori- changes to contract law principles as back, force majeure and termination ties to be sharply readjusted. Now, with well as labour laws under ‘equal work, rights, as well as scope of work provisions the Olympics postponed, other events equal pay’ principles for temp staff under a host of contracts, will have to be cancelled, and the entire Asia region become effective in April. With the scrutinised. While restructuring deals grappling with economic uncertainty, economy slowing down, many inves- and negotiating contract amendments, lawyers are carefully assessing the way tors might consider postponing major we need to keep an eye out for unique the Japan market is headed. investments. So, this could affect M&A Japanese law-based competition and Manfred Otto, who heads legal and other investment activities, such as subcontractor protection issues,” Otto and compliance at BMW Group Japan, real estate deals,” Otto predicts. says. Another likely area of legal work is tells ALB that the impacts of the coro- Mitsuhiro Kamiya, Skadden’s Tokyo insolvencies of event planning, tourism navirus outbreak has been “by far” the office leader, agrees that the outbreak and other travel-related businesses. most important development in Japan. is having a significant market impact — “Your own company or client might “Schools were closed, border controls particularly on the M&A process and not go bankrupt, but business part- ramped up, and the stock market across “every element of the acquisi- ners could be affected. So, change of crashed by 30 percent. The Tokyo 2020 tion agreement.” control provisions, securitisation, and the Olympic and Paralympic Games have “As we have said in our various timing to claim your rights as a creditor been postponed, and COVID-19 affects alerts on this topic, every page of an or to invest will become more relevant many other events and industries. The agreement has to be analysed using a considerations,” Otto notes, adding that Bank of Japan announced further mone- ‘COVID-19 lens.’ Also, with share prices queries regarding employment termina- tary easing and the Government prom- declining quite dramatically over the tion and other labour-related topics “as ised fiscal stimulus,” he says. last few weeks, companies may become well as data privacy of sensitive health The impact on legal work has vulnerable to shareholder activists, information” may grow more frequent however been mixed. “On the antitrust and those with activists already among in coming days.

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EXPLAINER

anti-money laundering (KYC/AML) of promulgating the rules under requirement, the new law attempts the new statutes,” says Kim. to curb the potential downsides of “Once everything is put in place, digital currency, such as funding only then will it be clear where SOUTH KOREA illicit activities.” On the flip side, while the current regulatory gaps exist. South Korea has already been gravi- In particular, whether the new tating towards such measures before compliance requirement will let the law was formally passed by “indi- mid-sized exchanges survive will ROLLS OUT rectly pressuring the banks that did be something to watch for,” he business with major digital currency adds. exchanges to impose stringent KYC/ AML requirements,” says Kim, noting WHAT KIND OF CRYPTO this requirement proved “fairly effec- LEGAL WORK IS THIS tive,” with South Korean authorities LIKELY TO GENERATE recently apprehending a child pornog- FOR LAWYERS IN raphy ring called Welcome to Video by THE MARKET? tracing transactions through a digital Clear legal guidelines will help REGULATORY currency exchange. But such meas- stimulate new opportunities ures can also hamper business. “On for domestic and cross-border the other hand, however, the stringent lawyers who are working in KYC/AML requirement also can mean digital currency, Kim says. “On FRAMEWORK that all but three to four of the largest one hand, domestic Korean exchanges in South Korea will be put transactional lawyers should see In March, the South Korean out of business,” warns Kim. a boon in activity, as the compli- National Assembly passed new legis- ance function for the digital lation that will provide a regulatory currency trade shifted signifi- framework for cryptocurrency, encom- FROM A REGULATORY cantly from banks to exchanges. passing transactions and exchanges. PERSPECTIVE, WHAT We may also see a flurry of The unanimous passing of this eagerly MORE NEEDS TO BE subsequent M&A activity in the awaited development has arrived at a DONE TO HELP SUPPORT wake of these new regulations, time when the coronavirus outbreak SOUTH KOREA’S as the mid-sized exchanges that looms large around the globe, domi- CRYPTOCURRENCY cannot meet the compliance nating headlines. Yet, for lawyers and MARKET? requirements will be acquired businesses in the market, the news is As with any type of legislation by the larger ones,” he adds. significant. “For South Korea, this is roll out targeting businesses, Regulatory action can also be a landmark moment,” Michael Kim, a lawmakers must walk a fine line expected, says Kim, predicting co-founder of Kobre & Kim, tells Asian between stifling innovation and that on the cross-border side, Legal Business. protecting those in the market given the borderless aspect of “Unlike the United States, where against predatory or illegal oper- digital currency, South Korean the general thrust of the law is ‘every- ations. The simple answer is, regulators will likely play a role thing that is not specifically prohibited until regulatory muscle comes clamping down on fraud and is allowed,’ the general thrust of the law into action, the true impacts misconduct “with a nexus to the in South Korea, particularly in relation remain to be seen. Korean market”. to financial regulation, is ‘everything “There is a balance to be “As can be seen from the that is not specifically allowed is prohib- struck between discouraging Welcome to Video child pornog- ited’,” he elaborates. Additionally, by illicit or fraudulent transac- raphy ring case, a well-regulated passing this comprehensive legisla- tions and encouraging market digital currency market enables tion, “South Korea is announcing that activity and innovation. Although tracing illicit digital currency digital currency will be a legitimate part we now have the overarching transactions. Lawyers around of the financial system —which hope- framework of the law, we do the world that practice asset fully will lead to a more stable yet inno- not yet know exactly how South recovery now have a new juris- vative trading environment,” Kim says. Korean regulators will strike that diction with clear guidelines set He specifies that “by imposing balance as they have only just around digital currency to rely a fairly strong know your customer/ begun the months-long process upon,” he says.

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WHAT UNIQUE tion, compounded by a lack of disconnect between various juris- CHALLENGES DOES geographical limits. dictions approach towards cryp- CRYPTOCURRENCY POSE “The mostly ‘borderless’ tocurrency. While some markets FOR REGULATORS? nature of digital currencies can take a heavy handed regulatory Cryptocurrency regulation create ambiguity and complexity approach or are simply closed also comes with specific chal- for regulators, forcing them to off to cryptocurrency, others are lenges, requiring high levels seek the assistance of other actively encouraging growth. of regulatory know how and, regulators in different countries “Unless regulations follow at times, access to additional that are also facing the same from multiple countries, digital expertise. Regulators may also questions on how to regulate. currency will continue to pose encounter erratic jumps in value But the most significant the same challenges it always and challenges with classifica- challenges may linger in the has,” says Kim.

DEALS

$10.6 BLN $3.32 BLN $3 BLN $2.6 MLN Charoen Pokphand Financing of seven Copenhagen Central Retail Group’s acquisition of airports in Hokkaido Infrastructure Partners Corporation’s IPO Tesco’s businesses in Deal Type: Project financing of Changfang Deal Type: IPO Thailand, Malaysia Financing Xidao Offshore Wind Firms: Allen & Overy; Deal Type: M&A Firm: Baker & McKenzie Farm Project Shearman & Sterling; Firms: Allen & Overy; (Gaikokuho Joint Deal Type: Project The Capital Law Office Freshfields Bruckhaus Enterprise) Financing Jurisdiction: Thailand Deringer; Linklaters Jurisdiction: Japan Firms: Baker McKenzie; Jurisdictions: Malaysia, Lee & Li; Linklaters; Thailand, UK Watson Farley & Williams; White & Case Jurisdictions: Singapore, Taiwan

$1.4 BLN $926 MLN $592 MLN $450 MLN SBI Cards’ IPO Li & Fung’s proposed Max Financial’s Qatar Holding’s Deal Type: IPO privatisation by Golden acquisition of acquisition of stake in Firms: Allen & Overy; Lincoln Mitsui Sumitomo’s Adani Transmission Cyril Amarchand Deal Type: Privatisation stake In Max Life Deal Type: M&A Mangaldas; Herbert Firms: Conyers Dill & Deal Type: M&A Firms: AZB & Partners; Smith Freehills; Latham Pearman; Davis Polk & Firms: AZB & Partners; Cyril Amarchand & Watkins; Shardul Wardwell; Kirkland & Cyril Amarchand Mangaldas; Cleary Amarchand Mangaldas Ellis; Slaughter and May Mangaldas Gottlieb Steen & & Co. Jurisdictions: China, Jurisdictions: India, Hamilton Jurisdiction: India Hong Kong Japan Jurisdictions: India, Qatar

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APPOINTMENTS

INDIA’S TRILEGAL JOINS JSA IN TESS FANG MELODY HE-CHEN JAE-HYON AHN LEAVING LEAVING LEAVING White & Case DLA Piper Orrick, Herrington & Sutcliffe ELECTING NEW MPS JOINING JOINING JOINING Allen & Overy Ashurst Duane Morris Selvam Rahul Matthan and Karan PRACTICE PRACTICE PRACTICE Singh, founding partners of Indian law Corporate Corporate Energy & Infrastructure firm Trilegal, will step down from their LOCATION LOCATION LOCATION leadership roles at the end of March to Hong Kong Hong Kong Seoul make way for two elected managing partners, according to media reports. This makes Trilegal the second known law firm in India to have elected managing partners after J. Sagar Associates (JSA), and is a sign of growing modernization in an industry where the larger firms tend to be effec- tively controlled by families. From April 1, Trilegal will be led by managing partners Sridhar Gorthi CHARLES MCCONNELL SAMUEL NGO MICHIHIRO NISHI and Nishant Parikh, who were elected LEAVING LEAVING LEAVING Linklaters K&L Gates Skadden, Arps, Slate, by partners of the firm. Corporate Meagher & Flom partners in the firm’s Mumbai office, JOINING JOINING White & Case Jones Day JOINING both Gorthi and Parikh specialise in Clifford Chance PRACTICE PRACTICE PRACTICE M&A and private equity. Banking Disputes M&A After the transition, Matthan LOCATION LOCATION LOCATION and Singh will become members of Singapore Hong Kong Tokyo the firm’s consultative board and will have supervisory roles. According to Mint, the new supervisory board will have seven members against the current four-member board. Two other people have been elected to be part of Trilegal’s management committee. Trilegal did not respond to ALB’s request for comment. Last year, JSA elected senior partner Amit Kapur and partner Vivek MAUREEN POH JAKE ROBSON JEREMY TAN Chandy to become joint managing LEAVING LEAVING LEAVING partners of the firm until March 2022. Ince Morrison & Foerster CMS Holborn Asia They are part of a five-member exec- JOINING JOINING JOINING utive committee which also includes Helmsman King & Wood Mallesons Bird & Bird PRACTICE PRACTICE PRACTICE partners Amar Gupta and Upendra Disputes M&A TMT Sharma, and former joint managing LOCATION LOCATION LOCATION partner Dina Wadia. Singapore Singapore Singapore

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BRIEFS IN MALAYSIA, A NEW GOVERNMENT BRINGS NEW UNCERTAINTIES After much back and forth, Malaysia officially has a new prime minister and cabinet. Former Prime Minister Mahathir Mohamad’s ousting set the tone for a controversial political period, and as the new prime minister and career politician, Muhyiddin Yassin, took charge last month, questions began Malaysia’s Prime Minister Muhyiddin Yassin waves to reporters before his cabinet announcement in swirling. What exactly does this mean for Putrajaya, Malaysia March 9, 2020. REUTERS/Lim Huey Teng business in the country — are formerly promised reforms under threat or will One silver lining, however, is that “There has been a number of things remain stable? much of new cabinet ministers are concerns that since UMNO is once again Leonard Yeoh, partner and Nurul arriving as “seasoned politicians with in power, charges against its leaders may Qarirah, associate at Tay & Partners say years of experience in various portfolios, be dropped or not properly tried. Najib that continuing political instability within as compared to the Pakatan Harapan Razak, Malaysia’s former prime minister the new coalition is to be expected going government where most were first- has reportedly stated that along with forward. “In fact, such jostles for power time ministers.” Say Yeoh and Nurul: the new government he is expecting a could be seen barely after a week the “Drawing on these experiences may help more ‘conducive environment’ leading to new cabinet was appointed, with certain to bring some assurance and confidence a fair trial. The same sentiment is shared members of the newly formed coalition in the public, which in turn would lead by UMNO’s president Ahmad Zahid voicing their dissatisfaction with the to greater political stability. It remains Hamidi, who is facing multiple charges; distribution of ministerial positions that to be seen whether this will be the case.” he expressed that the ‘dark clouds have appears to favour MPs from one party But, of course, it isn’t just local poli- passed,’” Yeoh and Nurul tell ALB. more than others,” Yeoh and Nurul say. tics casting a shadow over businesses But it’s not all cause for concern. Among the challenges the new PM at present. The coronavirus outbreak The lawyers say there are some positive faces is having to satisfy “all component has stymied the global economy, with indicators on the horizon. parties of the coalition and ensure that Malaysia not immune either. “In addi- “One might also be optimistic and he commands enough support to lead tion to the political situation, Malaysia consider that Muhyiddin had made it a the government”. is also greatly impacted by the spread point to not appoint any MPs currently “One example of such attempts of COVID-19 in the country which had facing criminal charges as ministers. by the PM was the appointment of a forced the country into a two-week This may show Muhyiddin’s commitment bloated cabinet, with some ministries Control Movement Order. The decline towards improving public confidence in now divided into two or three different in oil prices to below $30 per barrel is the new government and to dissociate his ministries and having multiple deputy also a hard hit for Malaysia, especially cabinet from allegations of corruption and ministers, to ensure that as many parties considering that Budget 2020 was based misconduct. The position of the Attorney as possible are given a slice of the cake,” on oil prices being above $60 per barrel,” General has also been filled by Tan Sri they say. Yeoh and Nurul add. Dato’ Sri Idrus Harun, a former Federal The new coalition is likely to be The 1MDB scandal remains a Court judge who is widely regarded as highly Malay-biased, say the lawyers, significant political hot-button topic a man with integrity. It is reported that adding that “the political landscape is for Malaysia and with the return of the the new AG has given the green light for expected to be more divided, especially United Malays National Organisation the prosecution team to proceed with the considering the lack of diversity in the (UMNO) to power, all eyes will be on the former Prime Minister’s trial relating to new cabinet.” new government. the 1MDB case,” Yeoh and Nurul say.

10 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BRIEFS ORRICK TO EXIT HONG KONG MARKET, MAYER BROWN HK TRIO WINDING DOWN OPERATIONS IN AUGUST TEST POSITIVE FOR

U.S. law firm Orrick, Herrington & Sutcliffe is set to close its office in Hong Kong, with operations scheduled to be wound COVID-19 down by August 31, 2020. Three lawyers from Mayer Orrick tells ALB that the decision had been made a while Brown’s Hong Kong office have tested ago, but the announcement was delayed because of the COVID-19 positive for COVID-19, according to the outbreak. The firm’s Hong Kong lease expires in June, and Orrick firm. The lawyers recently returned will secure temporary space to support its team and clients until from a business trip overseas, where the end of August. they are thought to have contracted The firm’s Hong Kong team now comprises of four part- the virus. ners and seven other lawyers and trainees, who advise on areas “We confirm that all three of our including investment funds, M&A and disputes. Hong Kong-based colleagues (whose After losing the entirety of its Hong Kong capital markets identity cannot be revealed for privacy practice in 2017 to Morgan Lewis & Bockius, the firm sought to reasons) who had recently returned to rebuild in Hong Kong with a focus on technology and innova- Hong Kong together from an overseas tion, but did not see the growth it was looking for. business trip have unfortunately all “While our practices in Beijing, Shanghai and Taipei tested positive for COVID-19,” the firm have thrived, we unfortunately have not been able said in a statement. to grow our team in Hong Kong in a way that aligns There are reports, including from with our strategy globally and creates opportu- The Standard, that that group includes nities for cross-office collaboration,” Orrick says. Hong Kong partner Menachem Hasofer. Additionally, its litigation and arbitration head in Hasofer is co-leader of Mayer Brown’s Hong Kong, Charles Allen, also left to join U.K. international arbitration practice. firm RPC last June. The lawyers have immediately gone into self-quarantine following the firm’s policy and have not been to any of Mayer Brown’s offices nor, as far as the firm was aware, have had any direct interaction with other members of the firm for around a month, the DENTONS HELPS QUASH $3 BLN ARBITRATION statement added. “We have allowed our lawyers and staff to work from CLAIM AGAINST PNG home and have made essential shift arrangements during this period,” the Dentons PNG, the Papua New Guinea firm of Dentons, has represented Mayer Brown statement further said. the country in obtaining from its Supreme Court a judgment quashing a $3 A few weeks ago Alfred CY Chow, billion arbitration claim brought by Independent Timbers and Stevedoring a partner at Hong Kong firm Kwan & which was advised by Squire Patton Boggs, Manatt, Phelps & Philips and Chow, reportedly became the first Leahy Lewin Lowing Sullivan. lawyer in the city to have tested posi- The claim was brought by IT&S in 2015, and made against PNG’s tive for COVID-19. failure to act on a forestry and road project agreement in the country’s Western Province. The Dentons team, led by partners Erik Andersen and Stephen Massa, was instructed by the PNG attorney-general and state solicitor. It contested the arbitration and challenged the arbitral court’s jurisdiction over the claim. After a lengthy battle, PNG’s Supreme Court ruled that a claim by arbi- tration is not authorised in this case, permanently staying the arbitration and awarding all costs to PNG. According to Dentons, had the ruling not been in its client’s favour, the result would have been worth a third of the country’s annual budget.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 11 BRIEFS DREW & NAPIER LAUNCHES REGIONAL NETWORK WITH MALAYSIA’S SHEARN DELAMORE, INDONESIA’S CORONAVIRUS TO HIT U.S. LAW FIRM MAKARIM & TAIRA S Singapore Big Four law firm REVENUE, WITH LAYOFFS ON THE WAY Drew & Napier has become the latest law firm in the city-state to establish U.S. law firm revenue will take a hit and layoffs are likely on the a regional network after setting up horizon, as demand for certain legal work drops and clients take longer to Drew Network Asia (DNA), which also pay bills as a result of the coronavirus pandemic, industry consultants said. counts Malaysia’s Shearn Delamore & Before the crisis, law firms had expected a “low single digit” revenue Co. and Indonesia’s Makarim & Taira increase for 2020, but now revenue is expected to be “absolutely flat” or S as members. “lower single digit down” for the year, said Mehrnaz Vahid, the head of Citi DNA is comprised of “blue chip Private Bank’s law firm group, which provides financial advice and services firms with a high standing in their to law firms, in an interview with Reuters. respective countries and in ASEAN.” Firms “all expect collections to slow down, period,” Vahid said. According to Drew, the alliance will The rapid spread of the coronavirus, which can cause the sometimes- help the member firms offer a full fatal respiratory illness COVID-19, has forced courts, businesses and schools suite of services to clients within the in the United States to shutter, with nearly one in three Americans now ASEAN region. “While remaining under orders to stay at home. independent, depending on the Corporate and litigation practice groups could be hit especially hard, as clients’ needs, we will operate as a many mergers and acquisitions and other deal work gets put on hold, while “firm of firms” so that our clients will litigators deal with court closures and trial delays nationwide, according to be seamlessly serviced in multiple Vahid and Brad Hildebrandt of Hildebrandt Consulting. jurisdictions,” the firm said in a Some corporate lawyers are being asked to work on restructuring or statement. bankruptcy matters as those practice groups may see an unprecedented Among Drew’s fellow Big Four upswing in demand, as could employment lawyers, Vahid and Hildebrandt firms, Rajah & Tann is at the helm said. of a network that spans 10 countries But not everyone can be transitioned to new roles. Large firms are – nine ASEAN nations and China. already considering layoffs, though they likely will not follow through with Meanwhile, WongPartnership set up a them until a few weeks later, when firms have a better sense of the finan- law network called WPG in 2017. Also, cial impact of the pandemic, Vahid said. RHTLaw, which recently parted ways Underperformers and those close to retirement age are the most likely with Taylor Wessing, to be impacted by layoffs, she said. led the formation ”There’s a lot of firms taking a hard look at these things,” Hildebrandt of the ASEAN Plus said in an interview. Group – a network To be sure, it’s not clear how long the pandemic will last or how severe of 11 law firms around the economic fallout will be. Both Hildebrandt and Vahid said it is possible the Asia-Pacific that firms rebound later this year, especially as the industry started 2020 region – in 2014. off strong. And Aquinas Law Nonetheless, many large law firms are already asking for additional Alliance was instru- lines of credit, though there’s no uptick in credit use, yet, Vahid said. mental in setting up ”[Firms] just want to make sure that they have the lending available to the ASEAN Legal them, if they need it,” she said. “If the collections don’t come in on time.” Alliance (ALA).

12 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BRIEFS

Q&A ‘THE ATTENTION TO PERSONAL RELATIONSHIPS CANNOT BE UNDERESTIMATED’ In June last year, Helena Samaha became Lex Mundi’s new president, succeeding Carl Anduri. Given the business’ impressive expansion under her predecessor, Samaha has her work cut out for her. But far from being daunted, the legal industry insider feels there is still room for growth.

ALB: What is your vision for the tools for some time such as Zoom or network? What new projects or plans Microsoft Teams. are you excited to tackle? SAMAHA: Lex Mundi is already very ALB: Long term, what’s on the horizon established globally as an unrivalled for Lex Mundi? What challenges and network bringing together top-tier firms opportunities do you see ahead? from around the world. Our key projects SAMAHA: The legal industry has been that are underway revolve around the transforming for some time, and this use of technology and having the right will continue. It remains to be seen resources in place to enable Lex Mundi whether the consolidation of law firms to operate as a central platform for and services in the long term will prove member firms working together seam- to be successful, especially as we appear lessly on cross-border matters: Watch HELENA SAMAHA to be entering a de-globalisation era this space. The resources are far- now. Traditional, local, law firms are reaching and include project manage- indeed under pressure from the Big ment, agile working methods, qual- SAMAHA: Like many organisations Four (accountancy firms) entering the ified personnel, and technology, that and indeed our members too, we are legal services space, as well as the alter- will provide clients with the coordina- adapting. In our case, we have a very rich native service providers and the global tion and transparency they need when program of events we hold all around the law firms. However, the issue is: once managing multi-country engagements. world to bring members together and you leave aside the automation of low General counsel are often looking to increasingly, by popular demand, these value work, where will the best talent avoid surprises, they also want effi- are open to clients too. With travel being choose to work? The in-house side of ciency, speed of response and value. It suddenly so restricted, we have had to the profession is increasingly attractive is increasingly important for law firms decide very quickly which programs as it can now provide a real career track to be nimble, flexible, uncompromised we can run virtually, and which ones with improved remuneration levels. If in their quality of advice and to be great are best postponed. The safety of our indeed the next generation of lawyers people to work with. Our human quali- people and member firms come first. are mostly interested in having a clearer ties and the attention to personal rela- We are pooling our unrivalled resources purpose in their work, more visibility, tionships cannot be underestimated to put together specific support during more responsibility, more influence on in my opinion. We are all people, not this crisis for clients with international strategy, and more flexibility, then you robots. businesses. can expect to see in-house legal teams In terms of our team at Lex Mundi, grow. ALB: The novel coronavirus outbreak we moved to remote working quite Having said this, firms such as has been uncharted territory for seamlessly. We already had a working- ours that are independent, nimble, everyone. How are you navigating from-home policy in place, in addi- truly local, and very prominent in their the current market challenges, while tion to the fact that several of the team markets, all the while being part of a also ensuring the wellbeing of your members work remotely from various homogeneous global family, could be members as well as the team at Lex parts of the world. So, we have been very attractive too - for talent and clients Mundi during this difficult time? using video conferencing and online alike.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 13 BRIEFS

NORTH ASIA AND SOUTHEAST ASIA/SOUTH ASIA LEAGUE TABLES

North Asia Announced M&A Legal Rankings North Asia Announced M&A Financial Rankings

No. 1 - Mori Hamada & Matsumoto No. 1 - Nomura

9,039.6 Value ($MLN) 10,557.6 Value ($MLN) Deals: 24 / Market Share: 6.2 Deals: 22 / Market Share: 7.2

Value Market Value Market Rank Legal Advisor ($MLN) Deals Share Rank Legal Advisor ($MLN) Deals Share 2 Anderson Mori & Tomotsune 6,876.7 14 4.7 2 Morgan Stanley 10,537.1 11 7.2 3 Norton Rose Fulbright 6,614.1 5 4.5 3 China International Capital Co 7,193.2 7 4.9 4 Commerce & Finance Law Offices 6,579.7 1 4.5 4 Minsheng Securities Co Ltd 6,689.5 3 4.6 5 Davis Polk & Wardwell 4,090.4 2 2.8 5 HSBC Holdings PLC 6,638.3 3 4.5 6 Nishimura & Asahi 4,009.7 36 2.7 6 Lianchu Securities Co Ltd 6,579.7 1 4.5 7 Lee & Ko 3,803.0 20 2.6 7 Anglo Chinese Corp Finance 6,158.1 1 4.2 8 Nagashima Ohno & Tsunematsu 3,617.7 27 2.5 8 Deloitte 5,787.3 13 3.9 9 Kim & Chang 3,165.9 26 2.2 9 Goldman Sachs & Co 5,250.0 4 3.6 10 Freshfields Bruckhaus Deringer 3,051.4 4 2.1 10 CITIC 4,498.3 14 3.1

(*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A) (*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A)

Southeast Asia / South Asia Announced M&A Legal Rankings Southeast Asia / South Asia Announced M&A Financial Rankings

No. 1 - Freshfields Bruckhaus Deringer No. 1 - Goldman Sachs & Co

13,295.9 Value ($MLN) 13,295.9 Value ($MLN) Deals: 4 / Market Share: 20.3 Deals: 3 / Market Share: 20.3

Value Market Value Market Rank Legal Advisor ($MLN) Deals Share Rank Legal Advisor ($MLN) Deals Share 2 Allen & Overy 11,113.1 4 17.0 2 Barclays 10,739.3 3 16.4 3 Linklaters 10,600.0 2 16.2 3 Greenhill & Co, LLC 10,600.0 2 16.2 4 Allen & Gledhill 8,205.3 3 12.5 4 Deloitte 8,884.9 4 13.6 5 WongPartnership LLP 8,056.5 5 12.3 5 JP Morgan 8,788.9 5 13.4 6 Cyril Amarchand Mangaldas 6,371.8 29 9.7 6 Credit Suisse 8,035.7 2 12.3 7 Davis Polk & Wardwell 3,645.9 2 5.6 7 Citi 4,280.8 6 6.5 8 Shardul Amarchand Mangaldas & Co 3,469.6 7 5.3 8 Morgan Stanley 3,689.6 3 5.6 9 S&R Associates 3,179.6 8 4.9 9 Platinum Securities Co Ltd 2,695.9 1 4.1 10 Slaughter and May 2,933.5 3 4.5 10 KPMG 1,545.8 4 2.4

(*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A) (*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A)

Any North Asia Involvement Announced M&A Activity - Quarterly Trend

Series1 Series2 440 5,000 Transactions of No. 374.4 354.5 324.7 340 4,000 267.9 282.1 283.9 283.8 253.1 243.8 257.7 245.2 254.6 218.5248.1 218.7 229.5 3,000 240 201.2 191.7 201.2 168.4 174.0 179.7 142.6 149.7142.7 158.8 146.4 2,000 114.7 131.9 115.3123.1 140 95.6 93.5 1,000

Rank Value US$ Billion 40 0 1Q 12 3Q 12 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 3Q 15 1Q 16 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19 1Q 20

League tables, quarterly trend, and deal list are based on the nation of either the target, acquiror, target ultimate parent, or acquiror ultimate parent at the time of the transaction. Announced M&A transactions excludes withdrawn deals. Deals with undisclosed dollar values are rank eligible but with no corresponding Rank Value. Non-US dollar denominated transactions are converted to the US dollar equivalent at the time of announcement of terms. North Asia includes China, Hong Kong, Japan, South Korea, Taiwan. Data accurate as of 1 April 2020.

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Indonesia’s e-court system was launched in 2018, as the justiceE-COURT system moved to tackle its notoriously sluggish court system and sought to streamline the process. While it will take some time and further development before Indonesia’s e-courts can be well and truly effective, its potential is being welcomed with enthusiasm.

BY ELIZABETH BEATTIE

While its development came long and a lot of paperwork, and there are comes as a solution to support and boost before the COVID-19 outbreak, legal only two judges and few registrars to the ease of doing business in Indonesia,” processes that minimise physical contact administer the cases, it could be that Sanger and Arisandi say. “We are of the are likely to be front of mind for everyone you only have a hearing at 3 pm,” she view that the e-court system will bring for practitioners everywhere. An example says. “So, you have to wait six hours in added value in contract enforcement as is Indonesia’s e-court system, launched the court to get a hearing. For a hearing the trial will be more effective and effi- in 2018, which is being hailed as a with the agenda of the submissions of cient for justice seekers.” welcome option in a country that has the dossiers to ensure the court process Time is a significant benefit of the traditionally suffered from archaic or can be smoother. You don’t have to wait e-court process, with the current system slow legal processes. hours for a hearing, you just can submit it often dragging on, resulting in ineffi- Prawidha (Wida) Murti a partner online. Therefore, the e-court was intro- ciencies for lawyers and clients alike. at Oentoeng Suria & Partners (OSP), duced in Indonesia.” With the new e-court system, Sanger which operates in association with and Arisandi say it is “easier for parties Ashurst, tells Asian Legal Business that PERKS OF THE NEW SYSTEM to measure the timeline of a case”, with Indonesia’s current system has long Arthur Wailan Sanger and Febry this also leading to a faster trial process been a challenge to navigate for lawyers Arisandi, partners at Indonesian law firm than the conventional court process. and clients. “The background is that Sandiva, agree that the primary motiva- “Time-saving is an advantage of the current process is a bit messy. You tion for the e-court launch was to fulfil course,” Murti agrees, adding that the might go to court for a hearing sched- the needs of the court to offer simple, process of having to go to court to submit uled at 9 am, and find that because there fast and low-cost trials. As the coun- physical documents is a time suck is massive amount of administration try’s economy continues to rise, “e-court which the e-court can help to bypass

16 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM DISPUTES

Supreme Court and Supervised Judiciary Bodies.” In the fourth paragraph of the letter, it stated that “civil, religious, and state administrative court proceedings are suggested to maximise the utilisa- tion of e-court litigation,” says Murti, adding this recent letter could “help to accelerate the implementation e-litiga- tion/the e-court in this current situation where traditional appearance before the court is not advisable.”

HOW IT MEASURES UP Indonesia’s e-court system was devel- oped with the help of comparative e-court system studies in jurisdictions such as Singapore, Malaysia and the U.S., but time will tell how well it meas- ures up. “It is difficult to measure now because it has not been implemented 100 percent, but if the idea is fully imple- mented, our court proceedings should be the same as other foreign courts where all the submissions can be made online,” says Murti. And, in the meantime, more areas need to be developed further. Sanger and Arisandi believe more work need to be done before Indonesia’s e-court can be measured up against those in other jurisdictions. “On the website of Indonesia Supreme Court, they claim that e-court system in Indonesia is equal with the system in Singapore with its capacity for online document new system will spell a shift in working and Malaysia. However, in our view, it submissions. culture. “Before the e-court system, the needs to be developed further, especially Another benefit is a more trans- lawyer can wait for couple hours for a in witness trial,” they say. parent process, Sanger and Arisandi trial, and now when they use e-court And while e-court system offers note. As “the parties can monitor the system they can be more effective and speed, in line with other e-courts around case through the website and all the efficient with time to deliver work and the world, it also requires the consent of payment will be paid online through a advice to their client,” say Sanger and the parties involved. “In the first hearing, state-owned bank,” they say. Arisandi, adding that because lawyers the judge will ask parties for consent to Then there’s the cost advantage to can be more effective with their time, run the trial through the e-court system. consider. The lawyers say that the e-court this will also lead to improving lawyers’ If the parties agree to do so, then the process can be “relatively more cost-effi- client relationships while reducing legal trial will continue by e-court system. cient than the conventional process, as costs at the same time. But when one party does not agree to this system will reduce the waiting time Moreover, Murti adds that another use e-court system, then the judges and the cost of a trial”. unplanned advantage of the system is its will choose the conventional system,” Sanger and Arisandi add that the capacity for socially distancing during Sanger and Arisandi say. Then when the e-court offers many clear benefits that cases. Due to the COVID-19 outbreak, e-court is selected as the forum of choice, spell significant change for the court Indonesia’s Secretary of Supreme Court only registered accounts will be able to process — and importantly, for lawyers issued a circular letter last month “on upload trial documents. in the market that may struggle with the the Adjustment of Judge and Court But even after approval is given to sluggishness of the current system. Officials Working System and Preventive share documents, lawyers and clients They say that for lawyers, the Measure to the Spread of Covid-19 in the should remain conscious of data safety

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 17 BROUGHT TO YOU BY PARULIAN SITUMORANG & PARTNERS Prepared for Dispute, Before the Dispute (A Glance on Necessary Evidence in Civil Litigation in Indonesia)

I believe that the last thing every litigator Information and Transaction expands the would like to experience is realising that the scope of evidence so that we now can client does not have the necessary docu- use print out as a formal evidence. From ments to support their stance in a dispute. all of the types of evidence that already This not necessarily happened because the mentioned, the type of evidence that a client deliberately not keeping any docu- party has full control are the evidence of ments pertaining the dispute, but can also documents and witness; which also can be caused by lack of knowledge from the be used as a foundation for the other type client of what document that should be of evidence. kept. For example, in any business contract, Ellrico Parulian Situmorang it is pivotal that respective party has the Partner Therefore, while the party still has the agreement (contract document) and also [email protected] control over the potential evidence, it is all of the documents that entails. paramount that such party complete and Parulian Situmorang & Partners maintain all of the documents pertaining Therefore, regardless how friendly a World Trade Center 5, 11th Floor, the agreement/contract. On top of that, it contract negotiation can go or how smooth Jl. Jend. Sudirman Kav. 29-31, is also advisable that the progress of the the execution of the contract can be, respec- Jakarta 12930, Indonesia implementation of the business contract tive parties must maintain the “what if”’ T: (62) 21 522 8133 also be witnessed by someone who is worth mindset throughout the process. We need E: [email protected] of a witness stand. to remember that the contract is made W: www.pspartners.co.id as a rule of the game and sometime the From our point of view, those two types of flow of the game is not as we expected in evidence are the very minimum that a party the beginning. This is where the litigation that a party can put forward in a civil liti- should maintain from the beginning of a process may enter into the picture to settle gation, namely: (i) documents (surat), (ii) contract business in Indonesia and therefore the difference between the parties. witness (saksi), (iii) expert witness (ahli), they are prepared for a dispute even before (iv) assumption (persangkaan), (v) confes- the dispute takes place. And of course, it is In general, the Indonesia civil procedural sion (pengakuan) and (vi) Oath (sumpah). every party’s desire that such preparation laws acknowledge several types of evidence The Law number 11 of 2008 on Electronic would not be used in the future. (eps)

risks which may occur throughout the so I would say the proceedings will be But even once the necessary infra- process. “As the court documents are more confidential in a sense,” she adds. structure is rolled out, it will not likely be confidential data and many of them a seamless integration into mainstream are very important — signatures, state- HURDLES STILL TO OVERCOME use either. There are continuity issues ments, etc. — we think that the possi- The pain points that Murti has observed which can make some cases ineligible to bility of data leak has to be noted by meanwhile include critical challenges go through the system — namely those both lawyers and clients when they around a lack of necessary infrastruc- that have already begun. “The second choose e-court system,” Sanger and ture. “Most of the hearings in Jakarta, problem is, you have to start e-court from Arisandi say, adding that currently the and outside Jakarta, don’t have enough the very beginning and most of the cases system is continuing to be developed, infrastructure for the e-court process,” we have are ongoing since 2018 when and the lawyers noted there were weak- she says. “Indonesia is a bit behind the e-court was not yet implemented nesses within the system. One aspect in terms of infrastructure and to have and we still need to have a traditional to consider, they warn, is that accounts this e-court to be implemented well, hearing for such cases,” says Murti. in the e-court system “bound the advo- you have to have good infrastructure As a result of these issues, and cate (personal) and it is not under the supporting it. You have to have a good the newness of the e-court system, firm name, therefore a risk in data secu- Internet connection, not just in Jakarta the real impact this will have on the rity will arise when that person resigned but in every region in Indonesia, you have market remains to be seen Murti tells from the firm before the case is finished.” to have a well-implemented system for Asian Legal Business. “We haven’t seen But there are some areas where storing online documents,” she says. “I a significant impact over the past year the e-court system could help to ensure am confident that our court system will since the regulation is implemented. I greater privacy for clients and cases. be just as good as other countries. Right think in five years, you will see it fully “When you have an open hearing... now, we’re not sure if it can be imple- implemented,” she predicts. you submit documents and you have mented 100 percent, so we just have to an audience watching that hearing,” wait and, hopefully, in the next few years FURTHER DEVELOPMENTS NEEDED points out Murti, “That will not happen the government will focus on making Both Sanger and Arisandi say that again unless it’s a cross-examination, progress in that particular area.” e-court system is “a breakthrough” in

18 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BROUGHT TO YOU BY SANDIVA LEGAL NETWORK How E-Court Process Is Impacting Trial Proceedings in Indonesia

For a litigation lawyer in Indonesia, it was common In the first hearing, the Panel of Judges will ask the to wait several hours in court before the trial started. counterparty (defendant) whether they agree with In many cases, the trial only takes not more than 10 the trial to be conducted through E-Court. If all minutes. We assume that the Supreme Court of the parties agree, the Panel of Judges will determine Republic Indonesia (the “Supreme Court”) finally the dates of the hearing for each agenda, which realized that they have to build a better system to the parties will need to sign of its agreement. The simplify the hearing proceedings by introducing Registrar will upload the hearing dates in the Court the administrative dispute and electronic trial Calendar. The parties will need to upload the court through the regulation of the Supreme Court No. 3 document on the determined date and time. In the year 2018. The electronic trial or known as E-Court event, a party does not upload the relevant court system which consists of E-Filling, E-Payment, document, it will be deemed that the party has E-Summon, and E-Litigation. The E-Court rules Arthur Wailan Sanger forfeited its right. and regulations are subsequently refined with the Partner enforcement of the Supreme Court Regulation No. [email protected] The E-court process will simplify the ‘paperwork’ 1 of 2019 (“Perma No. 1/2019”). Perma No. 1/2019 trial which only takes less than 5 minutes to encourages the court to apply the electronic courts Febry Arisandi upload court documents. However, witnesses (E-litigation) system. Partner and evidence hearing still be held in the court. [email protected] Nevertheless, witness and evidence hearing can be The proceedings of E-Court conducted with performed remotely through audio-visual media the supports of information technology and Sandiva Legal Network communication with the consent of the parties. communication as follows: Menara Rajawali, Lantai 12, Mega Kuningan • E-Filling: Online Registration. Lot #5.1, Jl. Dr. Ide Anak Agung Gde Agung, The court decision shall be deemed to be read to • E-payment: Online Payment. Kuningan Timur, Setiabudi (12950), the parties, attended by the parties when the Court • E-Summon: Online Summon. Jakarta Selatan, DKI Jakarta Decision is uploaded in the E-Court system. • E-Litigation: Online Trial. T: (62) 21 5099 2333 W: legal.sandiva.co For now, the E-Court system only applies for District By registration through E-Court, the party will Court, Religious Court, Administrative Military automatically obtain court fee estimates and Court, Administrative Court, and Commercial payment numbers. The court fee is payable through registered. The Parties will receive a trial summons Court. The e-court process will have a good impact an electronic channel. The Registrant will receive through e-mail and it could be seen through E-Court on lawyers and clients. It will be time and cost- a case number in the E-Court application and will application. However, the e-court proceedings are efficient for lawyers and thus will benefit clients as display a notification that the case number has been still subject to the agreement with the counterparty. well.

“In the first hearing, the judge will ask parties for consent to run the trial through the e-court system. If the parties agree to do so, then the trial will continue by e-court system. But when one party does not agree to use e-court system, then the judges will choose the conventional system.” — Arthur Wailan Sanger and Febry Arisandi, Sandiva

terms of reforming the litigation land- One highly important suggestion Yet, despite the systems’ current scape in Indonesia. Sanger and Arisandi advise is that the difficulties and demand for further “The transparency, effectivity, and system is adjusted so that more people development and adjustments, the efficiency of this system will positively can be added to one registered account. e-court system has been met with bring a new culture for the lawyers and They say this is important from a security widespread interest and enthusiasm it will impact to the client as well. The sense, as well as ensuring practicality. from those in the legal community in system will also reform the way court “At the moment, it has only one Indonesia. work, which can be more transparent person (advocate) for each case/trial. While Murti feels there is a long and easier to be monitored by the This development is needed to mitigate way to go before the system will be able parties,” Sanger and Arisandi say of its the risk of a data security leak — e.g. if to be fully functional and operate opti- many benefits. the person resigns or dies. The infra- mally, she, along with the greater legal But while it is expected to have a structure has to be developed as well, community, nevertheless feels opti- transformative impact across the whole among others, faster internet connec- mistic. “When this is launched, we are market, for e-courts to be truly effec- tion and well-prepared supporting staff very happy to embrace it. We’re enthu- tive and secure, there remains a need for (clerk) who understand the trouble- siastic, and welcome this development,” further development and adjustments. shooting of this system,” they say. Murti says.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 19 DISPUTES

Last year, 46 different coun- also allow Singapore’s dispute resolu- tries, including the U.S., China, South tions mechanisms to shine. “Mediation Korea and India came together to sign complements arbitration as it allows the United Nations Convention on users of Singapore arbitration to make a International Settlement Agreements serious attempt at settlement supported Resulting from Mediation, also known as by specialised institution, like SIMC the Singapore Convention on Mediation. (Singapore International Mediation Set to come into force in September Centre), and trained mediators with a 2020, the convention is being hailed by proven track record for reaching settle- lawyers locally for its innovation, as well ment. The mediation convention now as the boost it provides to Singapore’s gives teeth to enforce any settlement image as a dispute resolution hub. reached which will give even more reason Bazul Ashhab, managing partner to choose Singapore as a preferred and head of dispute resolution at Oon arbitration venue. I expect arbitration & Bazul, tells Asian Legal Business that cases to increase with the signing of the the new convention has clear bene- Singapore mediation convention,” Bazul fits. “It paves the way for mediated predicts. commercial settlement agreements The high-profile, international to be enforced across borders through nature of the convention, at the same a simplified process, giving credibility time so strongly associated with to mediated settlements. The coming Singapore (and Asia), is also being into effect of the convention allows the welcomed as a first. Doraisamy weighs enforcing party to go directly to a court in: “As the international treaty is the in a state party to seek enforcement first United Nations treaty to be named rather than spending considerable time after Singapore, it will definitely have and resources to obtain a judgement or a positive effect on the recognition of award for breach of contract under the Singapore as a global dispute resolu- dispute resolution clauses found in the tion hub, which already provides a full settlement agreement, and then there- suite of options for commercial parties after having to apply for that judgment to resolve their cross-border disputes, to be recognised in a foreign jurisdiction. be it through litigation, arbitration, or This I believe will lead to a reduction of mediation.” defaults of settlement agreement,” says “Having already established itself Bazul. MEDIATION as a hub for litigation and arbitration Peter Doraisamy, managing services, the addition of the Singapore director of Peter Doraisamy Advocates Convention, which can be regarded and Solicitors, lists the three key advan- as the equivalent of the ‘New York tages as: “One — providing parties with Convention’ for mediation, will signifi- the option to apply directly to the courts CENTRAL cantly aid Singapore’s efforts in estab- of the State where the assets are located The Singapore Convention lishing itself as mediation hub on an such that execution may also be sought international level,” he says. if the enforcement process is successful. on Mediation, set to But Singapore isn’t the only bene- Two — Providing a uniform international come into force in ficiary of the convention. There will also framework to enforce mediated agree- September this year, be a positive knock-on effect across Asia ments of cross-border disputes, which more broadly. “During the conference will then give businesses more confi- is being celebrated as held in Singapore before the signing dence in opting for mediation to resolve a boon for Singapore’s of the Singapore Convention, we were disputes. And three — reduction of costs cache as a dispute able to hear from speakers from Asian and time required to enforce mediated countries such as Myanmar, Malaysia, agreements as the non-breaching party resolution hub, as well as Korea, and China, who were all in full will no longer have to commence a fresh something that breaks support of the convention. They felt that action against the breaching party new ground in the global international trade would strengthen through litigation or arbitration.” between countries in the Asian region as mediation landscape. the certainty and legitimacy derived from A BOOST TO BRAND SINGAPORE the convention will indirectly increase Of course, the latest developments BY ELIZABETH BEATTIE the confidence amongst investors in

20 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BROUGHT TO YOU BY PETER DORAISAMY LLC

Paradigm shift in dispute resolution rules

In May 2016, the Ministry of Law announced the The proposed rules also introduce a Case Conference establishment of the Civil Justice Review Committee mechanism, which undoubtedly is an expansion (“CJRC”) which was tasked to propose reforms to the of the Case Management Conference (“CMCs”) in Singapore civil justice system. Magistrate’s Courts suits. What is perhaps the most significant inclusion in the Case Conference mech- Although the Committee remarked in its report that anism is a general requirement for parties to file the current system worked well for a majority of users and serve their list of witnesses and the Affidavits of and stakeholders,1 the Committee’s proposed amend- Evidence-in-Chief (“AEIC”) of all or some witnesses ments were substantial. At its core, the proposals after the close of pleadings and before the exchange seek to establish a judge-led dispute resolution of any documents.5 system. Peter Doraisamy The combined effect of the new proposed rules on the The focus of this article is on the effects of the changes Managing Director production of documents as well as the requirement on rules in relation to (i) the Production of Documents [email protected] to file and exchange AEICs after the close of pleadings and (ii) the introduction of the Case Conference mech- is likely to result in a front-loading of costs resulting anism to all claims. Mato Kotwani from an increase in work required in reviewing all Counsel documents prior to the commencement of the action The proposed amendments reveal a paradigm shift in [email protected] and requiring the quick preparation of AEICs soon the principles underpinning the rules on the produc- after pleadings have closed. No announcement has tion of documents; a claimant is now to sue and Peter Doraisamy LLC Advocates and Solicitors yet been made as to when the proposed rules will proceed on the strength of his own case and not on 1 Coleman Street #08-02 The Adelphi come into force. the weakness of the defendant’s.2 As a result, the rules Singapore 179803 on general discovery are now being replaced with rules T: (65) 6220 0325 requiring parties to exchange all documents which F: (65) 6220 0392 they will be relying on within 14 days after the date of W: www.pdlegal.com.sg 1 See paragraph 3 of the Report of the Civil Justice Review the Case Conference.3 Committee 2 See Chapter 8, Rule 1 of the Draft Rules of Court 2018 This means that a party is now only legally obligated new rules also do provide for the registrar/judge to 3 See Chapter 8, Rule 2 of the Draft Rules of Court 2018 to disclose documents, which he will rely on and he implement a broader scope of discovery, it appears 4 See Chapter 8, paragraph 2 of the Civil Justice Commission does not have to disclose all relevant documents (as that this will likely be the exception rather than the Report was the case with general discovery). Although, the norm.4 5 See Rule 7 Chapter 7 of the Draft Rules of Court 2018

their countries in pursuing international Bazul agrees that mediation is a Bazul, the current landscape is primed trade,” says Doraisamy. good fit for the region: “The preserva- for further legal changes in the future. tion of relationships is highly-valued and “In Singapore, we have a government CULTURAL FIT embedded as a priority in most Asian which is pro-business and deeply under- In recent times, mediation, says cultures. As mediation is now increas- stands the need to ensure Singapore Doraisamy, is also being actively ingly seen as a quick, fair, and effec- remains relevant to the rest of the world promoted by more Asian countries. “This tive dispute resolution mechanism to and region. There is a constant vigilance is because mediation falls in line with resolve even complex commercial on what the global business commu- Asian sensibilities and culture. Examples disputes (this is seen by the fact that nity needs and ensuring that need is in include the 2012 amendment to China’s 46 states had signed the Singapore the interest of Singapore’s economy. A Civil Procedure Law, which adopted the Convention on Mediation during the close working collaboration between principle of ‘mediation first’ in its Article official signing ceremony), we expect the government and lawyers assist in 122, the Malaysian Mediation Act 2012, to see rapid growth in the adoption of quickly introducing business-friendly and the Hong Kong Mediation Ordinance mediation as one of the main modes laws. I expect for these reasons there to 2013. This trend suggests that Asian of resolving international commercial be more Singapore-led legal conven- countries will likely rely on Singapore disputes in Asia. I believe mediation tions,” he says. as a mediation hub due to it being at dispute resolving professionals will be Doraisamy adds that the latest the forefront of convention’s enact- engaged as a first resort rather than last developments place Singapore at the ment. Hence, it is safe to say that the resort,” he says. forefront, internationally. “To have the Convention will have a positive impact in signing ceremony of the Convention Asia as parties in the region will be more BLAZING A TRAIL in Singapore is undoubtedly a signifi- confident in the enforcement of settle- Will this be the first of more Singapore-led cant milestone for Singapore as it indi- ments agreements resulting from medi- developments? While Singapore’s legal cates a growth of the legal landscape in ation and will, in turn, look to Singapore technology prowess is well documented, Singapore in becoming a dispute resolu- as a potential venue for the mediation when it comes to reshaping the law, this tion hub not only on a regional level, but of their disputes,” he adds. is something of a newer trend. Says an international one,” he says.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 21 COVER STORY

HONG KONG CMS Gall HM Chan & Co Oldham Li & Nie Stephenson Harwood

INDIA Cyril Amarchand Mangaldas EMPLOYER J. Sagar Associates Khaitan & Co. L&L Partners Singh & Associates

INDONESIA AKSET Law Assegaf Hamzah & Partners OF CHOICE SSEK Legal Consultants Last year was widely considered a tough year. With resources shrinking, job scopes expanding, KOREA an increasingly competitive marketplace to contend Bae Kim & Lee with and new regulations to navigate, many lawyers Kim & Chang in Asia met the end of the year with a sense of relief. Yulchon But now, as a global pandemic spreads and remote working arrangements are tested, the challenges of MALAYSIA LAW Partnership last year would be surely welcomed. In these difficult MahWengKwai & Associates times, a good employer is more critical than ever. ZUL RAFIQUE & partners For this year’s Employer of Choice survey, (mostly) happy respondents took a moment to PHILIPPINES consider what their employers do well, and what Cruz Marcelo & Tenefrancia Quisumbing Torres they could do to improve. BY ELIZABETH BEATTIE V&A Law

SINGAPORE Drew & Napier Duane Morris & Selvam Eng & Co Eversheds Harry Elias Stephenson Harwood

THAILAND Tilleke & Gibbins Weerawong C&P

VIETNAM LNT & Partners Rajah & Tann LCT Lawyers Tilleke & Gibbins

22 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM COVER STORY

What makes a good employer? It’s a ques- tion that all employees have a million answers to, but according to our latest Employer of Choice survey, certain key attributes are most important. Prominent among these are development, encour- agement and feedback, and flexibility. “Caring” and “understanding” were words regularly bestowed upon their employer by those who felt truly satis- fied in their workplaces, with “flexibility” rounding out other answers as another much-appreciated attribute. While survey respondents were not short on suggestions for what their firm could do to improve, for most, it was simply a matter of having access to “more.” Some commented that they wanted more of the professional development opportunities their firm already offered, while others wanted more chances to improve their expertise or education. DREW & NAPIER Some requested more flexible working arrange- ments, but given the necessity of this during the COVID-19 outbreak, this will likely be up for discus- FEELING VALUED sion with more firms across the board. Others still Having contributions and successes recognised told Asian Legal Business they were happy with by management is another critical decider for job what was on offer from their firm, and praised their satisfaction. In this regard, the responses were employer’s openness and opportunities available. slightly more mixed. Some respondents said their

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 23 COVER STORY

firm was “limited” in its recognition, while others decision-making, and the firm’s partners and said management would take credit for successes. employees know this,” Tse says. “The initiatives the Another issue was suggestions not being “taken firm has in place involve people from every level of seriously,” and requiring those trying to make seniority, and every type of role and department.” “For years now, changes having to additionally chase up staff Ongoing learning is a key priority for staff we have given members to be heard. across every level of their career, Tse says. From lawyers the Some were appreciative of positive feedback technical skill development, to training around all- flexibility of or kind words, while others praised their team for important technology and innovation, to business working from home fighting for them and making them feel valued and development and secondment opportunities. These periodically, when celebrating their successes. can be accessed by interested staff. they choose, no But those who feel truly valued and satisfied After all, the internal development reason required. in their work, there were often multiple reasons — programmes that are the most well-received by This was a simple decision because including an excellent work culture. employees and new hires are those that offer we have the best, One respondent from a large Singapore firm learning opportunities, says Tse. “The firm provides motivated and described their team as truly believing in its people, on-the-job learning, workshops, seminars and ambitious lawyers and developing them into “important individuals; retreats, as well as secondments – whether that we can ask for. not just another work unit.” be to a different office in the firm’s network, or a In return, our trust “I have been blessed with inspiring mentors client,” she says. and flexibility who gave me meaningful opportunities and pushed empowers and me to achieve things I wouldn’t have on my own, PREVENTING BURNOUT motivates them and for that, I will always be grateful,” they add. But while development opportunities may be ample to be at the top of Law firms, on their part, are making sure within firms eager to upskill their staff, this must their game and they can meet the needs of their employees and also be balanced against workload. Given the pres- produce excellent work. The partners ensure an engaged workplace. For example, while sure heavy-nature of lawyers’ work, coupled with are always there to COVID-19 has highlighted the importance of flex- the need to remain “on” and contactable for long provide guidance, ible working arrangements, Singapore Big Four firm periods, in recent years, firms have stepped up and mentorship, Drew & Napier has been offering it for years now. rolled out programmes that protect against burnout training and “In the current COVID-19 situation, our whole and create opportunities for their lawyers to decom- encouragement.” firm is working from home,” says press and re-energise. Avoiding burnout is some- Kelvin Tan, Kelvin Tan, director of dispute resolution at thing that the top firms increasingly consider care- Drew & Napier Drew, and “so the transition has been seamless.” fully, take seriously, and respond to tactfully. “For years now, we have given lawyers the Veeranuch Thammavaranucupt, senior flexibility of working from home periodically, when partner at Thailand’s Weerawong C&P, says that they choose, no reason required. This was a simple preventing burn out is inbuilt in the way the firm decision because we have the best, motivated and operates. “We care about our people: our philos- ambitious lawyers we can ask for,” he adds. ophy is that the firm is a platform to support all “In return, our trust and flexibility empowers lawyers’ advancement in the profession,” she says. and motivates them to be at the top of their game “Last year, we implemented new measures and and produce excellent work. The partners are always new technology systems so that lawyers may work “Fostering an there to provide guidance, mentorship, training and from anywhere at any time and we have designed environment where encouragement. With our IT connectivity systems, the office with the facilities to meet their needs and well-being is at the there is no lack of resource and support when our wishes in a comfortable work environment. We also heart of the firm’s lawyers are outside the office,” says Tan. installed an on-site gym.” values is central to This demonstrates, he says, the “relentless But safeguarding against this goes beyond the success of focus on great work, strict ethics and constant simply creating spaces for lawyers to work comfort- Stephenson Harwood. It training,” while also exhibiting how “mutual trust ably. Veeranuch says the firm also emphasises “a permeates every and empowerment allows everyone to adapt to culture of collaboration”. “Often, lawyers from level of activity their work-life priorities.” Tan notes that this is different practice groups work as a team. Regular and decision- “winning formula for everyone”. informal activities have fostered a great team spirit making, and the Mannet Tse, regional head of HR at – we work hard and play hard together, for example, firm’s partners Stephenson Harwood, says that the firm have at our TGIF events. We have an annual retreat where and employees various initiatives in place to help support profes- we conduct brainstorming sessions so that all staff know this.” sional development. “Fostering an environment may be part of the initiatives for improvements in Mannet Tse, where well-being is at the heart of the firm’s the office, i.e., workplace environment and work Stephenson values is central to the success of Stephenson procedures; we also celebrate our hard work and Harwood Harwood. It permeates every level of activity and successes,” adds Veeranuch.

24 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM COVER STORY

Tse agrees that good workplace culture is crit- ical when it comes to keeping employees happy and performing at their best for the long run. “Stephenson Harwood places real value on creating a work environment where ambition thrives, poten- tial is developed and talent is rewarded,” says Tse, adding that “Core to this is an emphasis on supporting the well-being of all colleagues, and an understanding of the importance of safeguarding mental health.” Among the firm’s initiatives in place to combat burnout are informal activities, such as hiking trips, to formal mental well-being workshops and one-to-one support mechanisms.

CEO OF YOUR CAREER As traditional law firms adapt to the treat of ALSPs and alternative legal offers absorbing their talent, they are increasingly taking a different approach STEPHENSON HARWOOD towards their employees, and empowering them to work in a way that best serves their abilities and enables them to “be the CEO of their careers.” institutions and international law firms. “Our soft Veeranuch says that many of the firm’s lawyers skills training is also very popular, for example, attend its legal skills training sessions, which are writing, negotiation, presentation and leadership provided by the partners. These are also comple- skills,” she adds. mented by programmes organised by reputable This development is very much tied into a state

“We’re thrilled once again to have our efforts in this area recognised by ALB, made all the more important because so much of the feedback they received came from our people.” Mannet Tse, regional head of HR, Asia

Offices | Beijing | Dubai | Hong Kong | London | Paris | Piraeus | Seoul | Shanghai | Singapore | Yangon Associated offices | Athens | Bucharest | Guangzhou | Jakarta

www.shlegal.com

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 25 W EER AW O N G , C H INN AV A T & P A R T NERS L T D .

“They have a deep understanding of not just the legal aspects, but the commercial and strategic factors, too.”

“When a client asks them why, they explain things and think outside the box, which is why we work with them.” - Chambers and Partners 2020 Combining local expertise with international standards of excellence, we help our clients develop business opportunities worldwide.

Awarded Employer of Choice for 7 consecutive years

Awarded Firm of the Year for 6 consecutive years

Awarded Deal of the Year for 9 consecutive years

Top tier firm in Thailand

WEERAWONG, CHINNAVAT & PARTNERS LTD. 22nd Floor, Mercury Tower, 540 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Thailand Tel: +662 264 8000 Fax: +662 657 2222 Email: [email protected] www.weerawongcp.com W EER AW O N G , C H INN AV A T & P A R T NERS L T D . COVER STORY

“They have a deep understanding of not just the legal aspects, but the commercial and strategic factors, too.”

“When a client asks them why, they explain things and think outside the box, which is why we work with them.” - Chambers and Partners 2020 Combining local expertise with international standards of excellence, we help our clients develop business opportunities worldwide. WEERAWONG C&P Awarded of mind as well. “In addition, our ‘be the CEO of your of particular practice groups, or even on a more Employer of Choice career’ policy is very well received by our lawyers: bespoke and personalised level. The firm also for 7 consecutive years this policy accommodates the needs of each lawyer recognises the value for colleagues of having if they want to commit more hours or fewer hours in the opportunity to mentor others, as well as be a given period and we remunerate them according mentored, and the role that this plays in developing “Over the years, Awarded to their preference. Along with the CEO policy, they longer-term managerial skills; there are numerous we have found that do not need to work at the office, they can work opportunities for more junior colleagues to play the most effective Firm of the Year anywhere but they must meet their professional a mentoring role, whether to peers or juniors, as mentorship is for 6 consecutive years commitments re clients and the office. We support appropriate,” she says. on-the-job their working and learning anywhere with high- mentoring by seniors in each speed internet and advanced mobile equipment,” LONG-TERM VIEW practice group Veeranuch tells ALB. With development programmes committed to Awarded and an open-door With an emphasis on being your own CEO, upskilling staff, getting the best results and encour- Deal of the Year policy for partners. the message to staff is one of autonomy — this is aging retention, the importance of these elements Further, we have for 9 consecutive years something the firm places at the heart of its internal working together to create a good workplace is a established a mentoring programmes too. “Over the years, we priority for firms. listening committee have found that the most effective mentorship Veeranuch says the firm’s various initiatives comprised of Top tier firm in Thailand is on-the-job mentoring by seniors in each prac- work in tandem to help support its internal culture. partners, senior tice group and an open-door policy for partners. “We care, not only for the well-being of our lawyers, associates and Further, we have established a listening committee but also for their progression and development junior associates. comprised of partners, senior associates and junior in the legal profession. So, our training sessions The listening associates. The listening committee will receive are designed to develop a professional mindset — committee will receive feedback/ feedback/concerns from lawyers and escalate these strategic thinking, effective communications and concerns from comments to the management level to implement negotiations, positive approach and service mind- lawyers and improvements,” says Veeranuch. edness. Our social events are fun, and they rein- escalate these At Stephenson Harwood, Tse says there force our internal culture — a pro-collegial atmos- comments to is a range of internal mentoring and coaching phere amongst trust-worthy team players who have the management programmes available for the team. enthusiasm and a passion for excellence,” she says. level to implement “Colleagues can choose whether they want Another important element, says Tse, is improvements.” more formal or informal support and adjust it to ensuring buy-in from across the whole company. Veeranuch reflect the stage they’re at in their career or any “Fostering an environment where well-being is Thammavaranucupt, particular hurdles they might be facing, including at the heart of the firm’s values is central to the Weerawong C&P personal ones,” she says. success of Stephenson Harwood. It permeates every This is also linked to a quality the firm prides level of activity and decision-making, and the firm’s itself on: its approach to flexibility, Tse adds. partners and employees know this. The initiatives “While there are structured schemes in places – the firm has in place involve people from every such as the development partner and high poten- level of seniority, and every type of role and depart- tial programmes – there is also a range of other ment. Because everyone is involved in them, it’s an WEERAWONG, CHINNAVAT & PARTNERS LTD. options, which can be adjusted to meet the needs authentic part of the firm’s culture,” she says. 22nd Floor, Mercury Tower, 540 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Thailand WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 27 Tel: +662 264 8000 Fax: +662 657 2222 Email: [email protected] www.weerawongcp.com BREXIT

With Brexit now out of the way, Asian companies may have to review their investment and trade strategies to adapt.

BY ASIAN LEGAL BUSINESS

With the United Kingdom offi- cially leaving the European Union in late January, Brexit is now done and dusted, and Asian businesses with interests in one or both areas need to start making adjustments. While the impact on areas such as data flows and regulations is DONE likely to be limited early on, other areas such as immigration and trade may begin experiencing changes much faster, and the differences between the United Kingdom and European Union likely to get larger over time. Barring any disruptions or changes spurred by the novel coronavirus disease (COVID-19) pandemic, Brexit will be implemented through to the end of the DEAL year to Dec. 31, 2020. MATTERS OF TRADE Brexit uncouples the UK from the EU economic system and without any replacement arrangement will cause severe disruption, says Ross Denton, senior counsel at Baker McKenzie’s EU, Competition and Trade Department in London. The disruption may not be felt right away. UK and EU investment and trade law are likely to be highly aligned in the short term but differences are likely to emerge over time. “If the UK and EU can agree with “There will be more uncertainty some form of free trade arrangement, then the disruption and economic costs in Asian businesses who are not will be lower.” living and breathing Brexit but Asian companies that trade with just seeking to maintain links Europe via the UK may have to adjust, as there is a big difference between the into the EU and UK.” Single Market treatment of trade and — Ross Denton, Baker McKenzie investment that was in place between the UK and the rest of Europe before Brexit and trade terms under World Trade Organization (WTO) rules.

28 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BREXIT

“Companies that have used the UK changes would be gradual,” says under the particular immigration rules to trade with the EU, or vice versa, will Catherine Leung, legal director at Lewis of the country where they will be based, now have to investigate the economics Silkin in Hong Kong. However, she notes, which could restrict the types of role that of that model,” Denton says. Companies there remains an element of uncertainty can be filled by British workers and the that depend heavily on just-in-time for companies going forward who have length of time they can be based in an supply chains, such as automakers, may traditionally built supply chains with EU country. be among the most affected. Europe, particularly companies who And there may be additional If the UK and EU do not agree on a have been trading via the UK to the costs. For instance, it can cost £7,500 free trade agreement (FTA), then goods larger EU market. to sponsor a worker in the UK and a coming into the UK for export to the EU “It remains to be seen what the sponsor license may also come at a cost. may be subject to customs controls and impact would be for trade of products At the same time, “certain roles may not duties and may face additional customs and services to and from the UK and be deemed skilled or highly paid enough controls and duties on the way into the EU after the implementation period for and therefore ineligible for sponsorship. EU. The UK has “ambitions to do new Brexit ends,” says Leung. This doesn’t impact companies from any FTAS with a number of Asian markets” The UK has agreed to implement geographical region but does impact including China and India, so a signifi- any new EU employment directives and certain industries disproportionally,” the cant amount of activity is likely. to comply with rulings from the European partners note. Hotels and restaurants, “Mitigation measures, such as Court of Justice, domestic courts and for example, have traditionally recruited customs warehousing may be available tribunals between now and Brexit and a lot of European staff but may not be but will be an additional cost,” Denton this arrangement can be extended for able to do so in the future. says. Even if the UK and EU do agree on another two years. Data protection is another area an FTA “those Chinese goods may not be “As far as employment law is where the impact may be felt slowly, able to avoid the additional checks and concerned, the degree of regulatory although some industries are more duties on movement in the EU, because harmonisation that Asian companies will concerned about this. One is the finan- those Chinese goods may not pass the be familiar with between the UK and the cial services industry, an industry that rules of origin necessary for duty-free EU will continue,” Lewis Silkin partner worries about the loss of “passporting” import into the EU.” Colin Leckey tells Asian Legal Business. rights and the ability to offer finan- “Companies dealing in finished “Once the implementation period has cial services throughout the EU single goods are the most vulnerable, with ended, a great deal depends on what market. those in the agricultural or foods precisely is the nature of the free trade The Withdrawal Agreement gener- sector the most at risk, and those in IT agreement that is agreed between the ally keeps the status quo regarding data and pharma products less likely to be EU and the UK – assuming anything is transfers, which means businesses must affected,” says Denton. “There will be agreed, which is not certain.” comply with the General Data Protection more uncertainty in Asian businesses “Historically, one of the main Regulation (GDPR) and rules are likely who are not living and breathing Brexit aims of Brexit supporters was to have to be very similar after Brexit. Data flows but just seeking to maintain links into the freedom to move away from EU between the EU and UK should continue the UK and EU.” employment regulations such as the without interruptions while transfers Ultimately, these changes are likely Working Time Regulations and the between the UK and Asia should also to boost demand for legal advice. Agency Workers Regulations, and create continue. “Firms with strong trade and regu- a more employer-friendly environment, The new global reality domi- latory practices will be in demand as although this has not featured heavily nated by the outbreak of the COVID-19 clients seek to navigate these issues,” in recent debate,” he says. “Whether pandemic could change the timeline and says Denton. Ironically, there are fewer of this will re-emerge in the years to come shape of Brexit. these practices in the UK because, after remains to be seen.” “Until COVID-19 came along, Brexit the country joined, most of these issues Another consideration is immigra- dominated conversation,” says Leckey. were dealt with in Brussels. tion. Here again, not much is likely to “The impact of COVID-19 means that change fast for Asian companies, which all of a sudden trade talks between the SLOWER IMPACT have traditionally had to comply with UK UK and EU seem a rather less pressing Employment and human resources immigration rules to bring staff in. matter.” issues are also some of the key consid- Multinational companies may feel “While the UK Government is still erations, but the impact may be felt more of an impact. formally committed to walking away slowly. According to the lawyers at from the table if no deal is done by June “We do not foresee any immediate Lewis Silkin, Asian companies’ British 2020, the likelihood of an extension to or mid-term impact on Asian compa- employees will also lose their right to that being agreed against the current nies from an employment law perspec- freely work across Europe. They will backdrop seems increasingly high,” says tive arising out of Brexit, and any such have to obtain qualifications to work Leckey.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 29 CYBERSECURITY

There is not a part of the world that hasn’t been affected by the novel coro- navirus disease (COVID-19) pandemic. As self-isolation and quarantines come SECURITY IN A into effect, more people are working remotely and connecting online instead of in person. While corporations and small busi- nesses alike scramble to find digital solutions for the conundrum, cyberse- curity concerns need to be on top of the list. Even the U.S. Federal Bureau of Investigation has warned of a spike in cybercrimes. And those in the legal field are seeing it too. “In our experience, we are seeing REMOTE an increase in the amount of businesses being affected by cyberattacks recently, as cybercriminals look to try and exploit IT weaknesses when users are working remotely,” says Lauren Hurcombe, a senior associate at DLA Piper’s Hong Kong office. “Organisations should therefore be mindful of these risks and implement effective remote working policies and WORLD arrangements as a matter of priority.” Even in January 2020, software consultancy Check Point Research stated that the leading malware threat Emotet was spread during the month using a coronavirus-themed spam campaign. That month, Emotet affected 13 percent of organisations globally. “The ‘most wanted’ malicious threats impacting organisations continue to be versatile malware such as Emotet, XMRig and Trickbot, which collectively hit over 30% of organisations worldwide,” says Maya Horowitz, the director of threat intelligence & research and products at Check Point. “Businesses need to ensure their employees are educated on how to iden- tify the types of topical spam emails that are typically used to propagate these threats, and deploy security that actively prevents these threats from infecting their networks and leading to ransom- As the global coronavirus outbreak causes employees ware attacks or data exfiltration.” everywhere to start working remotely, the risk of International groups like the World cybersecurity breaches is heightened. Lawyers in Asia Health Organization also had to put out a statement warning people of scams discuss the steps they are taking to keep their clients run under the guise of coronavirus secure – and themselves as well. BY ASIAN LEGAL BUSINESS related issues.

30 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM CYBERSECURITY

CYBER CONCERNS “There are several working arrangements would comply Mark Bennett, a counsel at Bird & Bird’s with their regulatory obligations. Hong Kong office, believes there are cyber risks associated “For example, this may throw certainly increased cybersecurity risks with a remote working up issues where there is a sizeable for companies with more employees environment: increased number of contingent staff deployed working from home, as the network is by a company in the financial services only as secure as its weakest link. COVID-19 related phishing sector looking to give such staff remote “Many employees may be and ransomware attacks; access,” he says. connected to home networks (or even unsecured home Wi-Fi public networks) or using home devices THE HUMAN FACTOR which are not as secure as office networks networks; vulnerable Sophisticated cyberattacks are one and devices - for example, because they Wi-Fi routers that use thing, but human error is also a major do not meet basic security requirements default login credentials; concern. such as requiring unique passwords or “From a cybersecurity perspective, using multi-factor authentication, which Internet-connected the main risks with working from home are usually built into office cybersecurity devices that can be used arrangements continue to be around requirements,” says Bennett. as access points to a managing human error,” says Hurcombe. “When you have a large portion of Hurcombe says that breaches can the workforce potentially using unse- home network; and happen whether through employees cured connections or devices, this inevi- malware campaigns being complacent and not adhering to tably increases the risk of exposure to disguised as distribution the same protocols as though they were cyber threats and being subject to a in the office, or due to the difficulties in cyber-attack.” of legitimate information navigating and properly responding to Bennett also believes the risk regarding COVID-19.” issues in the event of an incident when increases further where companies have key decision-makers and information — Kyung Kim, FTI Consulting outsourced their IT services to third party security teams are spread out across providers who would usually only have different time zones and geographies. on-premises access to the company’s IT Ultimately, mindfulness and systems but may now be forced to access sensible practices go a long way. systems remotely. “For those working outside of the Kyung Kim, the senior managing dures. Companies should review their office, and in particular. from home, director and head of cybersecurity for existing information security policies, common sense needs to be exercised. the APAC region at FTI Consulting, says as well as business continuity/disaster Making sure device screens are not left several possibilities are arising from this. recovery plans, to check whether they open or visible to just anyone or taking “There are several cyber risks cover remote working scenarios and if calls in more private places are good associated with a remote working envi- so, ensuring that these are followed,” practices to enhance general security,” ronment: increased COVID-19 related says Tan. says Mariel Dimsey, a partner in CMS’ phishing and ransomware attacks; unse- And if there are no existing policies Hong Kong office. cured home Wi-Fi networks; vulnerable or plans, companies should develop at “Employees may not think they Wi-Fi routers that use default login least some basic rules on remote working possess data that is valuable to cyber- credentials; Internet-connected devices and access to company systems. criminals, but between intellectual prop- that can be used as access points to a “In any event, all employees and erty, customer information, or confiden- home network; and malware campaigns contractors must be aware of the rules tial data, odds are they have something disguised as distribution of legitimate and in this respect, it is helpful to provide sensitive on their machine,” says FTI information regarding COVID-19,” he practical guidance on how to follow Consulting’s Kim. says. these rules. Companies should also He emphasizes that when working Jeremy Tan, a partner in Bird & ensure that they have incident response in a remote setting, employees should Bird’s Singapore office, recommends plans in place, and that employees are also take care to not download or access ensuring good cyber hygiene and aware of the need to report any actual or this sensitive type of information unless consistent practices in the normal course suspected incidents,” says Tan. they absolutely must and should ensure of business to avert any mishaps. For companies in regulated sectors that they are always operating in a “Ensure you have robust cyber such as financial services or telecommu- protected environment. policies and procedures in place and nications, Tan also advises that they be “Furthermore, this data should more importantly in these circum- mindful of their regulatory obligations never be transmitted over unencrypted stances, ensure that all employees to business continuity, outsourcing and email,” says Kim. are aware of these policies and proce- cybersecurity, and whether their remote Others also advise keeping attach-

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 31 CYBERSECURITY ments within secure systems, which law “Ensure you have and approaches. Even prior to the virus firms should already have in place. outbreak, we already had very robust “Documents circulated in our firm’s robust cyber policies and measures in place as a lot of our lawyers e-mail system are shielded by a spam procedures in place and work remotely when on business trips so filter and our IT team. Messages are ensure that all employees remote working has always needed to filtered and any suspicious messages work well for us,” says Dimsey. or attachments will get caught and won’t are aware of these Tan agrees, stating that law firms reach our personnel. Our lawyers are policies and procedures. generally already have robust infor- notified and additional steps for verifi- Companies should review mation security policies and incident cation are required to receive a message response plans in place. “The harder that has been classified as suspicious,” their existing information part is making sure that all employees says Dimsey. security policies, to across the firm are aware of what needs Communicating the need and check whether they cover to be done, and how to implement good importance for vigilance to remote cybersecurity practices at home. In our workers may seem obvious but is still remote working scenarios experience, we have been working with essential. and if so, ensuring that our lawyers and all staff to make sure “From a business perspective, these are followed.” they have access to a company device communication is key. Businesses (e.g. work laptop) and to only connect should take the time to remind staff — Jeremy Tan, Bird & Bird to the network using a secure connec- around maintaining compliance with tion through our VPN (and have been internal security protocols when working stress-testing our network to make sure remotely,” says Hurcombe. it continues to function effectively under “Organisations should take the these circumstances),” he says. time to inform employees of expected GET READY Bird & Bird’s Tan says they are also ways of working and send out regular Now is also the time to ensure all systems reminding all employees of their existing reminders and top tips about main- are in place and updated. information security policies. taining good security and data practices, “Organisations should also take “For example, only using work as well as ensure there is appropriate IT the time to ensure that their IT security computers for work purposes, not support to limit the potential impact of systems, back-ups and anti-virus soft- sending any documents using personal any issues.” ware are up-to-date and IT service desks email accounts, not storing company Hurcombe suggests that such are appropriately staffed to help deal data on personal devices or external communications could be in the form of with any issues quickly,” says Hurcombe. storage devices (e.g. USB keys), and so periodic company-wide email reminders Giving IT the resources they need on,” he says. “These policies are already and/or the implementation of e-learning to buff up security online and handle in place but become much more perti- modules. any threats that come their way is also nent in these circumstances.” Workers that aren’t digital natives a good idea. His Hong Kong colleague, Bennett, may not easily identify threats online, “IT security personnel should be sees employers playing a vital role in and then fall for phishing scams. In fact, given the resources they need to handle preventing any cyber slip-ups. the World Economic Forum estimates the increase in employees accessing the “For employers – we would that 98 percent of cyber-attacks use company network from home, and all encourage employers to review existing some form of social engineering tactics. staff should be notified of an increase information security policies, or where “Most importantly, ensure that in phishing and malware attacks and there are none, developing basic rules employees are adequately trained and how to spot such an attack,” says Kim. on remote working and access. If are provided with practical guidance on He has a couple of recommenda- possible, consider limiting the amount how to protect against cyber threats, and tions. “All employees working remotely of access to systems or information that how to recognise any potential threats should use a virtual private network employees can access remotely to the (e.g. phishing emails). For employees (VPN) to access the company network; bare minimum required,” says Bennett. – be sensible and follow the rules. multifactor authentication should be That is quite a laundry list of things If anything feels suspicious or unse- implemented on all devices; and oper- to think and act on, but maintaining the cure, check with your company before ating platforms should be regularly cybersecurity of any company when most proceeding,” says Bennett. updated to ensure known vulnerabilities workers are going remote and digital is “Communication between are fixed,” says Kim. possible. employers and employees is critical It’s a good sign some firms are “As long as additional precautions to ensure successful remote working confident in their setups and seemingly are considered, working remotely can arrangements, especially in the current prepared for anything. be conducted safely and securely,” says climate,” says Hurcombe. “Every firm has different setups Kim.

32 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BROUGHT TO YOU BY FTI CYBERSECURITY

FTI Cybersecurity 16/F Gangnam Building, 396 Seocho-daero, Seocho-gu, Seoul 06619, Republic of Korea T +82 2 2190 3727 E [email protected] W www.fticybersecurity.com

Company Bio FTI Cybersecurity provides independent cyber and risk management advisory services with a core offering focused on cyber readiness, incident response, and complex investigations. We take an intelligence-led, expert-driven, strategic approach to global cybersecurity challenges affecting your organisation – your people, your operations, and your reputation.

We build a safer future by helping businesses understand their own environments, harden their defenses, rapidly and precisely hunt threats, holistically respond to crises, and recover operations and reputation after an incident. Our team has a unique ability to include sector and industry expertise alongside our cybersecurity capabilities.

Our team, capable of deploying worldwide, consists of more than 300 dedicated cybersecurity experts, incident response consultants, developers, and data analysts with extensive investigative backgrounds, led by those with decades of experience at the highest levels of law enforcement, intelligence agencies, and global private sector institutions.

With our global team’s deep experience in law enforcement and government, we maintain relationships with the top global intelli- gence agencies, regulatory authorities, and private agencies to better support our clients in their prevention, response, and investi- gation of cyber threats and incidents.

Achievements FTI Cybersecurity supports all needs and challenges related to cybersecurity, including global investigations, forensic accounting and technology, data and analytics, data privacy and protection, crisis management and strategic communications, and anti-money laundering.

Drawing from both government and private sector, our experts routinely tackle large-scale analytic challenges requiring complex custom technical solutions. We regularly construct and leverage technical platforms to collect, analyse, and correlate data in demanding envi- ronments requiring precision and speed.

Regardless of the size or sector of a business, FTI Cybersecurity can create custom, scalable solutions designed to address and combat cyber threats proactively, while effectively and efficiently maintaining the operations and reputation of the business. This includes using cutting-edge capabilities around a trusted core of comprehensive offerings, enabling clients to address their most critical needs and integrate new solutions atop or alongside pre-existing policies and programs.

Key Personnel Kyung Kim, Senior Managing Director and Head of Cybersecurity, APAC Kyung Kim is an expert in cybersecurity, privacy, risk management, crisis management, investigations, and national security matters. Prior to joining FTI Consulting, Mr. Kim served as the head of the Federal Bureau of Investigation (FBI) and Special Advisor to two U.S. Ambassadors, covering all FBI national security matters affecting the U.S. and Korean Peninsula. During the North Korea nuclear crisis, Mr. Kim provided strategic risk mitigation guidance to the private sector and U.S. Government executives, including the White House, Secretary of State, Secretary of Defense, CIA Director, FBI Director, and U.S. Marine Corps Forces Cyberspace Command. Mr. Kim led the efforts to create a permanent FBI cyber agent position in U.S. Embassy and the Korean National Policy Agency HQ to proactively address cyber threats and vulnerabilities. He also coordinated with the FBI Cyber Division and Cyber Investigative Joint Task Force to provide training to host nation entities to better address cyber threats emanating from North Korea, China, and Russia.

Anthony J. Ferrante, Senior Managing Director and Global Head of Cybersecurity Anthony J. Ferrante is an expert in data privacy and cybersecurity resilience, prevention, response, remediation, and recovery services. He has more than 20 years of top-level cybersecurity experience, providing incident response and preparedness planning to more than 1,000 private sector and government organizations. Mr. Ferrante main- tains first-hand operational knowledge of more than 60 criminal and national security cyber threat sets, and exten- sive practical expertise researching, designing, developing and hacking complex technical applications and hard- ware systems. Prior to joining FTI Consulting, Mr. Ferrante served as Director for Cyber Incident Response at the U.S. National Security Council at the White House where he coordinated U.S. response to unfolding domestic and international cyber- security crises and issues. Building on his extensive experience, he led the development and implementation of Presidential Policy Directive 41 – United States Cyber Incident Coordination, the federal government’s national policy guiding cyber incident response efforts. Before joining the National Security Council, Mr. Ferrante was Chief of Staff of the FBI’s Cyber Division.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 33 WHITE-COLLAR CRIME WHITE-COLLAR SPIKE Economic slowdowns almost inevitably bring a jump in white-collar crimes. With the coronavirus outbreak raging, companies need to be more vigilant than normal. BY ASIAN LEGAL BUSINESS

With law and regulatory enforce- found a link between economic down- Add to this the need to overcome ment agencies shuttered across Asia, turns and increases in criminal activity. sudden tensions in the economic and reporting and auditing deadlines The UN report focuses on more tradi- financial infrastructure. Bribery and delayed and courts shuttered or back- tional crimes such as robberies, homi- corruption are possible solutions to, for logged, concerns are increasing the cides, or car thefts, but the same may example, critical shortages of specific white-collar crime could spike as the happen with white-collar crime. products. At the same time, “cyber-crim- novel coronavirus disease (COVID-19) Delays in regulatory enforcement inals might also exploit the uncertainty pandemic rages and economies take a and slow court action during a crisis and confusion to perpetrate cybercrime, hit. could also play a role. These delays are such as phishing scams or malware,” These concerns are not without already happening. Ang says. There have been already precedent. History suggests that, with instances of cyber-criminals looking to the economy plummeting, white-collar MISGUIDED PERCEPTION manipulate fears of COVID-19 to acquire crime will increase. Singapore has put in place measure to confidential and sensitive information. “Similar increases in white-collar limit the number of people in buildings And, as a result, risks related to crime incidents have been seen previ- and courtrooms, measures that are likely white-collar crime increase. Compliance ously in economic downturns, in partic- to cause delays. programmes, training and due diligence ular during the 2008 financial crisis In Hong Kong, courts have been may all be disrupted by work-from-home where hard times drove more people to closed on-and-off since late January requirements while companies may resort to investment scams and supply as the government implemented work- also be tempted to “scale back or delay chain fraud as well as bribery in order to from-home measures to deal with its certain mitigation measures,” says Ang. make money wherever possible,” says own outbreak of COVID-19. At the same According to the lawyers at Norton Annie Birch, an associate in the dispute time, the Hong Kong Exchanges and Rose Fulbright, one way to mitigate resolution practice at Norton Rose Clearing (HKEX) and the Securities and these risks is stress-testing compliance Fulbright Hong Kong. Futures Commission will allow delays policies and procedures and digitalising The reasons for this uptick are of up to 60 days in company filing of them. In-person compliance training fairly straightforward, says Wilson Ang, audited accounts on a case-by-case should also be moved and rolled out a dispute resolution partner at Norton basis. online. Rose Fulbright Singapore. “In a poor These are among the many They suggest companies to notify economy, profits are likely to be dimin- factors that could create a misguided the internal audit functions on the ished and targets which were previ- perception. heightened white-collar crime risks and ously set may no longer be realistic,” ”This may give wrongdoers the include additional checks in their audit he says. “Coupled with the pressure on false impression that a window of oppor- mechanisms. Companies should also employees to meet unrealistic targets, tunity has opened up for taking chances,” remind their employees of these risks the risk of white-collar crime such says Alfred Wu, a dispute resolution so they stay vigilant. Channels should as accounting fraud or financial mis- partner at Norton Rose Fulbright Hong also be put in place for whistle-blowing accounting is likely to be more enhanced, Kong. “Like the current battle against initiatives and staff should have access especially if management is slow to react the pandemic, self-vigilance and disci- to these channels. to the developments.” pline of businesses at the management What’s key, says Ang, is that In a 2012 report, the United Nations level and at the operations level cannot compliance programmes continue to run Office on Drugs and Crime (UNODC) be emphasized more strongly.” with a “business as usual” mindset.

34 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BROUGHT TO YOU BY THE RED FLAG GROUP

The reality of compliance

Having been in various forms of compli- on arrival into a country. While it ance for the last twenty years, here are has happened, everyone knows my top takeaways that are designed to it is a remote risk and one not to be direct, challenging and a warning to worry about. Any scare mongering compliance teams to think differently generally acts negatively and makes and adjust their approach. compliance looks lame.

1. Management Reality. The reality 7. Hiring processes are broken. Hiring of compliance is that most of the in management and leadership is management see compliance as so broken that a manager sacked important to keep their right to Scott Lane for a compliance breach in one operate but not important enough Chief Executive Officer and Chairman company will turn up at a compet- to err on the side of caution and do [email protected] itor after a few weeks. In most cases, more than required because it is the the competitor will know all the facts right thing to do. Doing the basic The Red Flag Group and still go ahead. required by the law and nothing Level 20, Strand 50, more is standard behaviour and 50 Bonham Strand, 8. The market really doesn’t see anything more is exceptional. Sheung Wan, Hong Kong compliance issues (and their T: (852) 3185 0700 possible resultant charges from 2. Never let compliance slow down F: (852) 3185 0701 government agencies) as a mate- business. Compliance in manage- E: [email protected] rial effect on the books of a busi- ment will always be doing the W: www.redflaggroup.com ness and loses interest in compli- minimum and keeping the wolves ance issues after a week or so. at bay, but never doing anything 4. Management would rather tick that would slow down business, boxes. Compliance is still seen as 9. Markets are too powerful. No one affect revenue negatively or cost a box-ticking exercise and unfortu- will downgrade a company based too much that becomes noticeable. nately most things that compliance on compliance breach for very long. Management will entertain compli- teams do involve boxes and their The market is far too powerful and ance for a while if it is not too noisy or ticking. While teams keep doing will always look at the underlying expensive. No CEO wakes up every that, management will be happy. business and write off the known day thinking about compliance and They like to see compliance busy on compliance issues. Drops in the what they are focused on. They only these areas, so they stay out of other market due to a compliance issue wake up and think like that when areas. will be reversed in a matter of days you cross the line and start slowing or weeks. down business. 5. There is no consequence for compliance failures. It is rare that 10. Compensation drives behaviour, yet 3. Compliance is the fifteenth member a management team feels the effect very few compliance programmes of the management team. While of their compliance lapses. In most can impact the compensation plan members of the compliance team cases, unless they were directly of managers. If it is included in the are sometimes invited to meetings involved in fraud themselves, they plan, it is often small, negligible and and report to management, the role rarely lose their jobs nor suffer rarely actioned. itself will never be a key member major consequences. The fees, of the leadership of the company. charges, costs of compliance are Knowing these issues is the first step. The Similarly, your budget is normally mostly immaterial and a rounding second step is accepting that they exist immaterial, small and inconsequen- error. and acknowledging that you likely not tial to the company. They will make change them in almost every company. you work for it; they will challenge 6. Managers don’t accept the scare The third step (post acknowledgment) you on it as part of the standard tactics of compliance. Everyone will lead you to focus on the things that process - but it is just part of the knows managers never go to jail and matter and not the things that you can’t process for costs management. no one will be trapped at an airport change.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 35 INDIA

Established in 2002 and headquartered in Delhi, Singh and Associates (S&A) has offices in Gurgaon, Mumbai and Bangalore. The firm specialises in liti- 2020 INDIA gation and ADR, contracts and transac- tions, corporate and tax, and intellectual property. In 2019, the firm won arbitra- tions for clients which amounted to approximately 60 billion rupees ($812.7 million). Over the past year, S&A’s head- count has increased from 105 to 151. FIRMS TO WATCH Singularity Legal is an Asia-and- This year’s list of India Firms to Watch features a Africa-focused international disputes boutique which was established in 2017 diverse group. While some have been in the business by Prateek Bagaria. In 2019, the firm was for decades, others were only set up in the past named the Rising Law Firm of the Year 12 months. What unites them is strong commitment at the ALB India Law Awards. The firm handles cross-border disputes across to client service and a great deal of ambition. sectors including energy and resources, construction and infrastructure, shipping RANKING BY ASIAN LEGAL BUSINESS, TEXT BY APARNA SAI and insurance, international trade and business, and private equity and finance.

Ajay Sahni & Associates, which was in areas such as M&A, corporate, labour Noida-based boutique Sujata Chaudhri launched in 1983, recently opened its and employment, real estate, venture IP Attorneys was founded in 2014 by Mumbai office. The firm specialises in capital and private equity, education Sujata Chaudhri. The firm specialises in intellectual property, trademark, copy- laws, defence and aviation, franchising, all aspects of trademark law, branding right, patent, design, geographical indi- media and entertainment, dispute reso- issues, designs and copyrights. The cation, disputes, licensing, enforcement, lution, insolvency, software/information firm has been involved in major litiga- protection, audit, transactions, valua- technology, and general corporate and tion matters in the past year and has tions, commercialisation, monetisation, commercial matters. represented major brand owners from investigations, legal, technology, media, India and overseas. and telecommunication. It is the first law Pioneer Legal, which was founded in firm in India to offer blockchain-based April last year, represents domestic UBR Legal Advocates was founded by IP solutions. and international clients on corporate Bharat Raichandani in 2015. In 2019, the and commercial laws, employment firm opened offices in Vapi and Delhi. It Meanwhile, GameChanger Law laws, insurance, intellectual prop- focuses on tax litigation such as direct, Advisors specialises in commercial erty, telecommunications, information indirect taxation and foreign trade and contracts, corporate law, employment technology, infrastructure and project policy-related matters. UBR Legal also law, FDI/foreign trade, intellectual finance among others. The firm currently advises on commercial laws, arbitration property and venture capital transac- has an office in Mumbai, but is in the and contractual laws. tions. Founded in 2011 by Amrut Joshi, process of expanding its operations and the firm has three partners, and offices will soon setup its commercial litigation LAW FIRM SHOWCASE: in Bangalore and Delhi. The firm has and arbitration practice. Lex Consult represented clients from various sectors Lex Consult is a Mumbai-based corpo- including fintech, sports, entertainment, Another firm which made the list is PSL rate commercial and transactional and gaming, social enterprises/impact Advocates & Solicitors. Established advisory boutique law firm with two investments, and venture capitals. in 2012, the firm has offices in Delhi, partners and six fee-earners. Founded Mumbai, Bangalore and Chandigarh, in 2019, the firm specialises in mergers Established in 2004, LexCounsel Law with the latter two being set up last and acquisitions, strategic alliances and Offices is a Delhi-headquartered corpo- year. The six-partner boutique hired joint ventures, private equity and venture rate/commercial and litigation law firm five associates over the past year. SP L capital, structured finance, dispute with four partners and 35 fee-earners. has represented clients from sectors strategy and real estate. The firm recently opened an office in including automotive, food, hospitality The firm’s clients include Pioneering Bhubaneshwar. LexCounsel specialises and real estate. Ventures, Arshiya Limited, Sukkhi Online,

36 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BROUGHT TO YOU BY LEX CONSULT Lex Consult Nyay Sagar, 2nd Floor, Kalanagar, Bandra East, Mumbai – 400 051, India E [email protected] W lexconsult.co.in

Key Personnel Naresh Pareek, Partner, +91 90 0407 3498 Naresh Pareek is a partner at Lex Consult, and has an experience of over a decade in corporate commer- cial and transactional advisory. His primary areas of practice are joint ventures, financial & technical collab- orations, mergers (including demergers), acquisitions, private equity investments, business restructuring and cross border transactions. Having worked at top law firms before co-founding Lex Consult, Naresh has advised clients on a wide range of issues relating to acquisitions, structuring (including entry and exit strat- egies), regulatory trends and compliances, strategic issues and developments in a variety of sectors such as manufacturing, power/infrastructure, healthcare, retail/consumer goods, financial services, real estate, media & technology, e-commerce, fintech, insurance and hospitality. As a trusted advisor to a number of his clients, Naresh is often requested to go beyond the limits of a typical transactional lawyer and advise on contentious matters such as shareholder disputes, arbitra- tions, liquidation proceedings and fraud investigations.

Majid Afsar Siddiqi, Partner, +91 88 7961 4511 Majid Afsar Siddiqi specializes in joint ventures and acquisition, shareholder exits and disputes. He has, in the past, also advised leading banks and financial institutions in their lending and structured financing transac- tions. While having primarily represented investors, Majid has also represented Indian promoters on a variety of deals in sectors ranging from pharmaceuticals, agri-business companies, logistics and real estate to finan- cial services, retail, education and technology consulting services. Majid has successfully been able to use this sectoral experience to implement methodical due diligence strategies, efficient negotiations, effective drafting and faster deal-closing. Majid has spent his formative years at top law firms prior to turning entrepreneurial and has regularly advised international clients in structuring their investments in India, especially in relation to heavily regulated sectors such as real estate and retail. He was one of the key members of the team which successfully obtained the requisite government approvals and concluded the first and only foreign direct investment deal in the multi-brand retail sector in India.

Accelerated Learning Edutech, Mestech adapting to the dynamic requirements of encouraging a work environment that India Services, Niyogin Fintech, Arevuk clients in a responsive, effective and effi- attracts new generation lawyers; and Advisory Services and Lesma Limited. cient manner; training associates while retaining talent as the firm believes Notable work of Lex Consult includes giving them the necessary guidance and that it is equivalent to hiring new ones. representing Pioneering Ventures in the space to showcase their abilities; and Additionally, this year, Lex Consult acquisition of a further 28 percent stake leveraging the collective knowledge intends to consider fresher ideas along in Desai Fruits and Vegetables from of the firm’s lawyers to service clients with building a connect with various law Deepak Fertilizers and Petrochemicals in various sectors like manufacturing, schools in India (through internships, Corporation; acting in the court- chemicals, fintech, agriculture and agro- presentations and so on. approved merger of Valiant Organics tech, media and entertainment, edutech, Partners Majid Afsar Siddiqi and and Amarjyot Chemicals; representing hospitality, real estate, retail and more. Naresh Pareek, who each have more Accelerated Learning Edutech, which Some of the changes in business than a decade of experience in the legal operates the School of Accelerated conditions which the firm believes worked industry, are key members of Lex Consult Learning, in its seed funding round in its favour include the dynamic nature along with associate Shubham Soni. from Astarc Ventures and others; and of the regulatory regime which saw Siddiqui specialises in joint ventures, representing Niyogin Fintech Limited numerous clients requiring guidance to structured finance, cross border acquisi- in its acquisition of a majority stake in operate in a compliant manner resulting tions/investment, real estate and retail. Investdirect Capital Services, the holding in a closer working relationship between Meanwhile, Pareek is well versed in joint company for Moneyfront – a platform both the parties, government policy and ventures and court approved mergers, for direct investments in mutual funds. legislative measures such as IBC, RERA, cross border/private equity transactions, The firm attributes its success in the GST, FDI liberalisation and others. and infrastructure power manufacturing. past year to focussed partner attention The firm’s growth strategy includes In the future, the firm intends to on each deal; recognition by clients and addition of practice areas through inor- grow further while expanding their counterparties of its transactional experi- ganic acquisition of partner practices; team as well as developing a knowledge ence; the approach to the unique require- leveraging the firm’s existing network management team and leveraging the ments of a young millennial workforce; to make further inroads in the industry; latest technology.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 37 RENEWABLE ENERGY

GREEN ViewAMBITIONS of Cirata Dam, Hydro Electric Power for Java and Bali, Cianjur, West Java Indonesia. Akhmad Dody Firmansyah/Shutterstock.com Southeast Asia’s largest economy has prioritised new renewable energy legislation that could be a chance for the country to move away from coal with renewable energy resources. We speak to two prominent energy lawyers in Indonesia about how they expect to see it impact the sector. BY RANAJIT DAM

ALB: At this time, President Joko Regulation (PR) to accelerate the Regulation No. 4/2020 encom- Widodo is expected to soon sign the progress of renewable energy. The draft passes many subject matters meant to long-awaited presidential regulation PR is expected to address various issues be regulated under the PR, for instance, on renewable energy. What specific encountered by investors. The discus- the power purchase price. Purchase price elements in the law are you looking sion on the draft PR is taking longer has been the specific focus for most forward to? than expected, while industry incentives investors, as it helps them determine EVA ARMILA DJAUHARI, partner, also need to be considered. The recently the economy of their investments. Under Armila & Rako: Indonesia is striving passed MEMR Regulation No. 4 of 2020 the current Regulation No. 4/2020 the to ensure that 23 percent of its energy (Regulation No. 4/2020) is said to be pricing scheme refers to PLN produc- comes from renewable energy sources a “quick fix” for current hurdles faced tion costs, which does not necessarily in 2025. At present, the proportion of by potential investors. In parallel, the reflect the economy of the project and renewable energy has reached only legislature is also working on the draft of the investment rate of return. The current around 12 percent. Due to this moderate the Law of Renewable Energy (the Bill), draft of the PR introduces a slightly growth, the Indonesian government which will be the foundation of all regu- different price scheme as Regulation has been preparing the Presidential lations in this sector. No. 4/2020 as it applies staging scheme

38 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM RENEWABLE ENERGY of price depending on the age of the in the law and regulation to avoid any Indonesia, negotiating various contracts project. The scheme is designed for gap that could dampen the interests. with PLN, financial institutions, contrac- higher price for the first period of the Incentives for renewable power tors, and other parties, handling project project, as such allowing prompt repay- producers is equally important to financing and acquiring new projects ment of finance of the relevant project. improve the investment climate. including assisting them with due dili- Besides the price scheme, incentives for Perhaps, in lieu of BPP as a reference in gence exercise and preparing transac- renewable energy players would also setting the price, the government could tion documents as well as assisting with be the element everyone looks forward base the price scheme on the economy of licensing, approvals and compliance. to, whether it is fiscal, administrative or the project since each project is unique. Clients of the firm include public otherwise. That way, it allows the power compa- and privately held companies, large and MARCIA WIBISONO, partner, Yang & nies securing financing relatively easier, emerging businesses as well as public Co: In past few years, Indonesia has been hence the failing rate of renewable sector entities. developing a new element of renewable energy projects could be significantly Type of works or clients are energy from using the palm crude oil reduced. projected to be similar once the PR and/ as a raw material to be processed into WIBISONO: The current challenge is or the Bill are passed but the interest biodiesel as a fuel. Indonesia, as one of that our country is depending on the in this sector is anticipated to be much the countries that has been using palm import of diesel, which affects bigger. oils for a long time, is making a break- foreign exchange. To over- WIBISONO: Approximately through to cultivate it as one of the ingre- come this, our government is 20 percent of our practice is dients for making B30 (a biodiesel blend encouraging the use of B30, related to the energy sector. containing 30 percent fuel produced which also would suppress At the moment, our works are from palm oil). The Government of the country’s deficit in oil and mostly related to the merger Indonesia has required the use of this gas trading. Hence, it can be and acquisition, conducting B30 as fuel for certain companies. The said that the ESDM Decree legal due diligence, advising Government of Indonesia has been might indirectly be phrasing in the business structure trying to enact the legal protection for about the positive values and compliance with the B30, which was started with the issu- about using B30, yet hope- EVA ARMILA regulations. DJAUHARI ance of Decree of the Minister of Energy fully, in 2020 these would be Once the bill is passed, and Mineral Resources of the Republic supported by having legiti- we expect to assist more Indonesia No. 227 K/10/MEM/2019 mate regulation. potential clients in starting concerning Conducting a Trial of Mixing One thing that needs to their renewable energy busi- Thirty Percent of Biodiesel (B30) into be considered is that busi- ness in Indonesia. diesel oil type for period in 2019 (ESDM nesses would always choose Decree). The issuance of such decree the easiest and cheapest fuel. ALB: How would you describe shows how serious our government is Consequently, we think that it the overall renewable energy when it comes to introducing the use of will be helpful if the producers landscape in Indonesia B30 in Indonesia. could obtain an incentive from right now? What are some While the ESDM Decree encour- the government such as tax of the kinds of potential it ages the use of B30, we expect to have incentives or tax holidays due MARCIA possesses, and what are its WIBISONO a further regulation which supports the to their support and persis- biggest challenges? use of B30 by providing attractive bene- tence on the development of renewable DJAUHARI: Although somewhat lagging fits to the producers and users. The key energy sector. some of its neighbouring countries and strategies are further explained below. even its target to progress renewable ALB: How large is your energy prac- energy, Indonesia offers a lot of opportu- ALB: Broadly speaking, how do you tice? What kinds of work does it do at nities to invest in this sector. The govern- expect it will improve the investment the moment, and what kinds of clients ment’s firm target and strong commit- climate in the renewable energy sector does it serve? Do you expect that to ment to developing renewable energy, and why? change once the bill is passed? economy and political stability coupled DJAUHARI: The keyword to attract DJAUHARI: Various aspects of corpora- with the fact that it is an archipelagic investment is “stability” in all respects, tion have been the focus of our practice state, make Indonesia an attractive including regulatory stability. Consistent but principle industries the firm represent target for renewable energy investment. regulation at all levels will provide are energy and resources with renewable Regulations which are often over- certainty for business. Hence, the energy included within. Currently, the firm lapping and conflicting with each other, government shall vet all aspects of busi- involves in numerous works for clients lacking coordination between the ness in this sector and make certain they ranged from structuring and preparing regional and central government and have been appropriately accommodated them to commence their business in PLN limited capacity remain the major

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 39 BROUGHT TO YOU BY ARMILA & RAKO Renewable Sources of Energy in Indonesia: shaping the future of renewable energy

In 2025 Indonesia target 23% of its national energy price will be at the maximum of 85% of the local BPP or sourced from renewable energy and in 2050, it is the price will be agreed by both parties if the local BPP expected to reach 31%.1 Perhaps it is an ambitious is below the average national BPP. This scheme applies target as the realisation in 2019 only reached 12.36%, for solar, wind, biomass, biogas and ocean power. just about half of the 2025’s target, which is far below the expectation. The government targets investment in renewable energy to reach USD2.3 billion in 2020, which number Renewable energy is also hoped to contribute towards is derived from the assumption that target electricity the national non-tax state revenue (Pendapatan Negara consumption for 2020 is increased to 1,142 kWh/capita Bukan Pajak or “PNBP”). In 2020, PNBP from all energy compare to 1,084 kWh/capita in 2019. Thus, there are and mineral sectors is targeted to reach IDR 181.7 tril- ample investment opportunities in this sector. lion - lower than the last year target of IDR 214.3 tril- Eva Armila Djauhari lion. Of such revenue from energy and mineral sectors, Partner With regard to the renewable fuels, numerous govern- renewable energy contributed only IDR 0.9 trillion. This [email protected] ment programs have been introduced to support the year, renewable energy is expected to contribute more use of non-fossil fuel such as biodiesel mandatory towards PNBP, i.e. around IDR 1.2 trillion. Armila & Rako policy that is targeted to reach 10 million kilo litre 12th Floor, Lippo Kuningan, and the use of electric cars and stoves. As for electricity from renewable sources, various factors Jl. HR. Rasuna Said Kav. B-12, contribute to the failure of reaching such revenue target Jakarta 12920, Indonesia Despite the Covid-19 pandemic which has been causing including the unattractive feed in tariff scheme which T: (62) 21 2911 0015 slowdown of global economy, Indonesian govern- refers to the PLN production costs (“BPP”), complex F: (62) 21 2911 0016 ment’s target and commitment towards renewable red tape in government sphere as well as uncertain W: www.armilarako.com energy remain strong. This is in line with continuous and conflicting regulations, to name a few. improvement in many respects initiated by the govern- ments at all levels including improvement in coordina- The government endeavours to boost investment in the previous mandatory BOOT scheme. PPA model is tion between governmental departments, revision to this sector by identifying several incentives for investors aimed to be more attractive and acceptable by finan- unfavourable regulations and simplification of permits. in addition to its agenda fixing the regulations. MEMR cial institutions without ignoring the importance to Regulation No. 4 of 2020 (“Regulation No. 4/2020”) balance the risks of PLN and the investors. just recently passed to amend the MEMR Regulation No. 50 of 2017. Subject to few conditions, such regu- In general, the pricing scheme under such Regulation 1 As regulated in the Presidential Regulation No. 22 of 2017 lation allows fiscal incentives, land access and availa- No. 4/2020 still refers to BPP. In the event of the local concerning General Plan of National Energy (Rencana bility, simple licensing procedures and elimination of BPP is above the average national BPP, the purchase Umum Energi Nasional or RUEN)

“Incentives for renewable power producers is renewable energy sector. Consequently, the producers could improve in the B30 equally important to improve the investment climate. production. Perhaps, in lieu of BPP as a reference in setting Although renewable energy in the price, the government could base the price scheme Indonesia is very promising, there are pros and cons in the development of on the economy of the project since each project this sector. Potentially, it will reduce is unique. That way, it allows the power companies the country’s deficit in importing fuel, securing financing relatively easier, hence the increase domestic palm oil consump- tion and it will help to protect the envi- failing rate of the renewable energy projects ronment because B30 is producing could be significantly reduced.” less CO (carbon monoxide). However, the biggest challenge is that until now — Eva Armila Djauhari, Armila & Rako we still import methanol as the mixing material in producing B30. Therefore, our government needs to find a solution in providing the material for producing B30. obstacles in this sector. In addition to WIBISONO: As we view that the ESDM those challenges, absence of willing- Decree is an introduction to the use ALB: How do you expect the renewable ness and lack of knowledge of the local of B30, we expect the government to energy scene in Indonesia to evolve community on the importance of the issue further implementing regulations over the next few years? industry particularly for local economy to support such decree. Along with DJAUHARI: Renewable energy in makes it even harder and detrimental for the government’s support to use and Indonesia has been growing steadily. investors when commencing business in produce B30, the producers would indi- Commitment from the government this sector in many areas in Indonesia. rectly support the development of the towards renewable energy from the

40 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM BROUGHT TO YOU BY YANG & CO LAW OFFICE The outbreak of COVID-19 is effecting deliveries of contractual liabilities; can the contractual parties claim this as force majeure event?

The rapid deployment of COVID-19 has caused The Force Majeure clauses at least must cover (i) the World Health Organization (WHO) declares a the broader definition which covers all unforeseen public health emergency and making Indonesian circumstances; (ii) the obligations of the affected government closes international borders for party such as notifying in writing the occurrence of temporary. Business sectors have been affected Force Majeure event within certain time to the other because of contractual parties cannot deliver their party; (iii) the good faith of the affected party such obligations on time. Therefore, contractual parties as the effected party must using all reasonable are looking to their agreements or contracts to find endeavors to rectify its obligations; and (iv) the ways to escape liabilities and not considered as the further consequences of the agreements or contract defaulting party because of non-performance of the because of Force Majeure event. obligations. The question is how the contractual parties’ act as a good faith for not being considered Marcia Wibisono Hence, although our Indonesian Civil Code as the defaulting party because of non-performance Partner clearly states that the parties are not liable to due to this Covid-19 situation? Can the contractual [email protected] pay losses and its interest in the occurrence of parties use the Force Majeure clause in their Force Majeure event, but the wording of the agreements or contracts? Christian Yang definition of the Force Majeure event shall clearly Senior Associate stipulate that COVID-19 or any pandemic events Article 1244 of Indonesian Civil Code (“Indonesian [email protected] shall be considered as Force Majeure event, as Civil Code”) stipulates that the affected party must well as the obligations of the affected party. pay the losses and its interest, if the affected party Yang & Co Law Office Therefore, if the affected party fails to fulfill one cannot prove that there is an unpredictable event Multivision Tower 3rd Floor, of the requirements of the Force Majeure clause or (which are beyond the parties’ control) or Force Jl. Kuningan Mulia Lot 9B, unable to prove that such non-performance event Majeure which caused the effected party’ obligations Jakarta Selatan 12980, Indonesia was caused by Force Majeure, then such party may are impossible to be performed. In practice, the T: (62) 21 2938 0878 become liable to the losses and interest because agreements or contracts do stipulate about the F: (62) 21 2938 0877 of non-performance. Force Majeure clauses. However, recently the Force W: www.yangandco.com Majeure clauses are often considered as ‘boilerplate’ or ‘standard clause’. The parties are often not paying stipulating the clear obligations to be conducted by much intention on this clause. Therefore, it would the affected party to show there is a good faith in this Note: the content of this article does not constitute be difficult if there is no clear definition and not Force Majeure event. legal advice and should not be relied on as such. outset to date play a significant role “There are pros and cons in the development of this in the success of renewable energy in Indonesia in the next few years. The sector. Potentially, it will reduce the country’s deficit in commitment has been translated as importing fuel, increase domestic palm oil consumption continuous improvement by the govern- and it will help to protect the environment because ment in many respects such as regula- tion, coordination among governmental B30 is producing less CO (carbon monoxide). However, institutions and incentives for investors. the biggest challenge is that until now we still import Educating the community regarding the methanol as the mixing material in producing B30. benefits and importance of this sector is also crucial in order to maintain condu- Therefore, our government needs to find a solution in cive environment. I am confident if all providing the material for producing B30.” these are consistently improved, the — Marcia Wibisono, Yang & Co target for renewable energy will ulti- mately be reached. WIBISONO: We are very confident that the renewable energy sector in Indonesia will be a valuable and important sector soon with some improvements. This is between institutional structures d. Providing support for the devel- because sooner or later the un-renew- domestic especially to overcome opment of the renewable energy able energy should be replaced by the issue of licensing and land industry within domestic and renewable energy for sustainability. We acquisition; exemption from import tax on believe that this is going to be an inter- b. Apply taxes carbon monoxide renewable energy equipment; and esting sector. Some keys strategies to emissions; e. Providing education to the commu- be considered are as follows: c. Providing investment support for nity regarding the application of a. strengthening coordination renewable energy sectors; renewable energy.

WWW.LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – APRIL 2020 41 CYBERSECURITY

unit and no high-end professionals ever entered this area,” he says. Nowadays, a marketing depart- ment is an almost essential part of any Chinese law firm, and high-end talent in this space is highly sought after. Dorothy Xing, member of the managing SPREADING committee of East & Concord Partners, tells ALB that although her law firm’s marketing department was established five years ago, it has seen several of its marketing executives move to other law firms. “The mobility of marketing THE WORD officers demonstrates that this area is flourishing,” she points out. Given the rise in both awareness and hands-on experience, have Chinese law firms generally established a system- atic marketing strategy? It is noteworthy that as professional organisations providing legal services, law firms formulate their marketing strategies differently from other commer- cial institutions. In addition, Hua says: “A law firm’s marketing strategy needs to be based on its market position, busi- ness focus and development, system, income and revenue, as well as the current market and economic conditions. As Chinese law firms continue to expand in size and These factors need to be considered as a whole, which will eventually drive law geographies, they have begun to realise the importance firms to adopt different marketing strate- of marketing in attracting and retaining clients and gies.” Therefore, in terms of marketing recruiting talent. Today, almost all Chinese law firms approaches, Chinese law firms already have a playbook to follow while showing have an in-house marketing department and they are diversification in their approaches. seeing positive results from their marketing strategy INTERNAL SETUP and brand building. BY HU YANGXIAOXIAO Although most Chinese law firms now have an in-house marketing or similar department, their composition and In China, the marketing strategy of they want to continue to consolidate management vary greatly. A common law firms has evolved over the years. As their presence and bring in more busi- practice is to set up a marketing depart- professional service providers, law firms ness, they must build their marketing ment that is headed by a partner but had been relying on word-of-mouth for capabilities like commercial organisa- operated by non-legal marketing their expansion for a long time. Lawyers tions in other sectors. specialists. This is how JunHe and East believed that clients would eventually Warren Hua, member of the & Concord run theirs. come to them because of their reputa- managing committee of JunHe, tells Take East & Concord as an example, tion, and only a few of them were willing Asian Legal Business how Chinese law which was formed after two established to do commercial marketing. firms have reversed their thinking. law firms in Beijing merged in 2014. However, times have changed with “During the first 30 years, the develop- Xing tells ALB: “It is also because of the the rising numbers of lawyers and law ment of China’s legal industry mainly merger that everyone began to reflect on firms, the increasingly fierce competi- relied on legal professionals to open up our brand and subsequently established tion in the legal service market and the market and there was little attention the marketing department.” Currently, the constant evolution of fee models. to building a marketing team. Most law the law firm’s marketing department Chinese law firms have realised that if firms set up the team as a back-office works on four areas, namely submis-

42 ASIAN LEGAL BUSINESS – APRIL 2020 WWW.LEGALBUSINESSONLINE.COM CYBERSECURITY sions for awards, business develop- ment (including drafting proposals) and business support, native content and “Marketing in China’s legal industry is still at other legal media marketing, as well as business development and marketing an infant stage. As the industry grows rapidly, resource management, which was estab- marketing will be done professionally with lished in 2020. the division of labor. By then, more high-end Another common practice is to form a special marketing team which is headed professional talents will join the cause to promote by a partner and joined by partners from the development of China’s legal industry.” different practice areas or branches, senior lawyers as well as personnel from — Warren Hua, JunHe LLP other functional departments. This is the approach that Commerce & Finance Law Offices adopts. Speaking of this setup, Andrew Zhang, member of the managing committee and head of marketing of the law firm, explains: “Marketing specialists may work more on external communi- cation, but currently, we focus more on extracting the firm’s internal information and integrating it for communications. Law firms are more complex institutions with diverse practise areas and offices in different areas, by assigning part- ners from important practice areas to join the working group, the marketing team can track data more easily, and the marketing strategies could also be At times, online and offline activi- tation, while Xing adds that in addition executed more efficiently.” ties share the same theme. A prime to receiving the awards, paying atten- example would be JunHe’s integrated tion to the rankings can help a law firm TARGETED INITIATIVES marketing strategy in 2019, the year better understand where they are in the In terms of specific marketing when the law firm celebrated its 30th market. “Legal media and rankings will approaches, Chinese law firms have anniversary. Marketing activities that lead law firms. What adjustments have generally established a set of initiatives year centred on its 30th anniversary. been made to this year’s awards? What through experience in recent years. The law firm organised over a hundred are the research directions? What new Law firm marketing can be done offline legal seminars and non-legal trends have emerged? These agencies both online and offline. As most Chinese salons, as well as four client apprecia- are industry observers and can help law people get information from their mobile tion events. It also published dozens firms complete their market research,” phones nowadays, law firms publish of articles about the law firm’s culture. Xing says. their achievements, news, articles and Then an event boasting more than a In 2020, East & Concord’s marketing research reports on their websites and thousand attendees in the UAE at the strategy shines a new light on the explo- WeChat accounts to stay active. They end of the year marked the culmination ration and use of academic institutions. then choose suitable external plat- of a successful year of marketing. Xing tells ALB that the law firm has estab- forms for additional marketing. Email lished the Law and Technology Research marketing is also a common approach. EXTERNAL RESOURCES Fund with the Renmin University of China. East & Concord sends its core achieve- Besides internal actions, the three law Over the next three years, East & Concord ments to, and shares its knowledge with, firms also mention the importance of will allocate several million yuan from its hundreds of its regular clients by email. leveraging external resources. The marketing budget to the university and As for offline marketing, law firms external resources that they use the third-party projects that are deemed suit- organise presentations, join events most are legal media such as Asian Legal able to promote the law firm with their organized by professional organisations Business, law firm rankings and various resources. “As far as I know, there are no such as media and arbitration commis- industry associations. similar partnerships between a law firm sions, and visit clients to explain hot Hua believes that winning legal and an academic institution like ours in legal issues. awards can enhance a law firm’s repu- the market,” Xing says.

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TALENT DEVELOPMENT FOR CONTINUED BUSINESS SUCCESS BY ANKUR GUPTA

In 2019, Big Four professional developing people with the appro- with bringing capabilities to harness services firm PWC published a report priate mindsets and skillsets could tools and techniques to automate work- on how law firms were adapting to be the make-or-break factor for busi- flows as part of its in-house Automation paradigm transformations in busi- ness continuity and success in the Academy. An intended outcome is to ness models, utilising technology to evolving operating environment. This help overcome perceptions around boost productivity and support new view is echoed within the profession, lawyer unwillingness and ability to ways of working, building innova- by customers of legal services and adapt to technology informed oper- tion cultures, and enhancing agility to service providers such as those special- ations. Meanwhile, the Singapore better serve their client needs and navi- ising in technology solutions, although Attorney General’s Chambers is gate the complexities in the operating tech providers may unwittingly paint upskilling its lawyers and support staff environment. a narrative that deemphasises invest- to deploy baseline MS Office applica- The PWC survey respondents ment in people over investment in apps tions in innovative ways for stream- included UK-headquartered law firms, and platforms. Stuart Barr, who over- lining internal processes for document as well as international firms having sees HighQ, an end-to-end solution for assembly and template generation. offices there. The respondents were law firms offered by Thomson Reuters, On-the-job training is intended to surveyed on “key future challenges,” emphasized in a recent podcast that help staff overcome potential mental defined as “the most significant chal- for law firms, “the sweet spot if you can barriers related to operating in unfa- lenge facing the legal profession over find them will be people who can work miliar territory and challenging stere- the next 2-3 years.” Unsurprisingly, across different technology platforms otypes that lawyers tend to be uncom- technological change, new entrants’ to bring them together.” fortable with or unwilling to adopt new and talent retention were identi- The hiring strategy of law firms ways of working with technology. Such fied as the most pressing ones, along across jurisdictions increasingly includes efforts leverage on workplace learning with Brexit and the ensuing economic attracting professionals with diverse as a building block of staff development. uncertainty. skillsets and experience, often from Done right, it can be a very effective These challenges are opportu- outside the legal sector. This is evident people development endeavour. nities for law firms to strengthen not from job posts by law firms on LinkedIn Beyond developing technical just traditional legal services offerings and their websites seeking technology competencies, initiatives like the but also explore diversified revenue managers, project managers and data Automation Academy can ingrain abil- streams, offering non-traditional prod- scientists. What is not so evident is ities to work within the firm with both ucts and services. Navigating such chal- whether systematically developing external and internal business support lenges deftly is no longer just about staff capability is a strategic priority, professionals and non-legal domain improving on metrics of efficiency, client as is hiring diverse talent. Conversations experts, opening channels for interpro- growth or scaling up, or about having and action around actively developing fessional collaboration. Legal profes- an IT strategy or workflow dashboards. staff capabilities across functions are sionals working in isolation cannot be The challenges call for reinventing the underpublicised. It does not mean that expected to render improved client law firm in anticipation of an unfamiliar such efforts are not underway. There is service design and delivery. This has future. growing recognition among certain law been the experience of enterprises born Beyond the market gyrations, find- firms of nurturing a learning infrastruc- around largely certain core profes- ings arising from the PWC survey indi- ture, which can support new ways of sions such as the Big Four professional cate that it is not “business as usual.” working with clients and working inter- services firms, hospitals, airlines and IT Longstanding service offerings are not nally in innovative ways. Two exam- services. as profitable as before. People costs ples from Singapore highlight efforts remain high the PWC survey reveals, at developing lawyer skills with innova- but the return on investment in hiring tive service delivery as the goal. Ankur Gupta is a law lecturer at the and developing talent is not paying Clifford Chance Asia Pacific has School of Business at Singapore’s off as expected. In this new reality, been experimenting systematically Temasek Polytechnic.

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