TIME OF RECKONING Singapore’s legal market at the crossroads

GROWING ARSENAL Litigators have an array of tech tools to choose from

GETTING ON TRACK A closer look at the ASEAN’s railway plans

BOLD IDEAS AND FRESH THINKING IN

MCI (P) 060/02/2017 issn 0219 – 6875 ASIA’S LEGAL INDUSTRY KDN PPS 1867/10/2015(025606) BUSINESS, LAW AND THE “INTERNET OF THINGS” 5 APRIL 2017 / 9AM - 5PM / SINGAPORE

The “internet of things” (IoT) already exists, is growing interviews and round-table discussions with actual IoT rapidly, and is beginning to have a significant effect on developers, regulators and highly experienced lawyers. business structures, commercial contracts and contract • Make a crucial and positive contribution to the future management in all sectors. Research conducted by Cisco of your business by knowing how to address the legal predicts up to 50 billion connected devices by 2020, up requirements that come with adopting IoT solutions from approximately 18 billion in 2015. What are the legal (particularly those related to contractual relationships). and business ramifications of these developments? 6 Public Asian Legal Business presents an intensive one-day PRICING: workshop that equips you with the knowledge to stay Standard Rate: SGD1,000 CPD points ahead of the game. Get a detailed understanding of the Early Bird: SGD 800 (ends 22 March 2017) Practice Area: Corporate/ legal ramifications of IoT such as cyber security, data Group price: SAVE ADDITIONAL 20% - Register five Commercial protection and contractual obligations. participants from your organisation and the fifth person Training Level: General attends for free. SILE Attendance Guidelines: TARGET AUDIENCE: Participants who wish to claim • Senior in-house counsel/general counsel To register for this event, go to: CPD Points are reminded that • Private practice lawyers www.regonline.com/IoT2017_SG they must comply strictly with • Chief Technology Officer (CTO) the Attendance Policy set out in the CPD Guidelines. This includes • IT coordinators / consultants For more information about this event, go to: signing in on arrival and signing • Procurement specialists and contract managers www.legalbusinessonline.com/masterclass/IoT2017_SG out at the conclusion of the activity • Legal departments in government bodies/regulators in the manner required by the CONTACT FOR FURTHER INFORMATION: organiser, and not being absent from the entire activity for more BENEFITS OF ATTENDING: Taranjit Kaur than 15 minutes. Participants • Be ahead of the game by getting a detailed +65 6870 3909 who do not comply with the understanding of the legal ramifications of IoT such [email protected] Attendance Policy will not be as cyber security, data protection and contractual able to obtain CPD Points for attending the activity. Please refer obligations through revealing case studies. to www.sileCPDcentre.sg for more • Get insider information by listening to extracts from information.

AGENDA: 8.30am or less contract management? • What is a “Decentralized because your organization uses Registration • What happens when there is a Autonomous Organisation” IoT breach of contract? (DAO). Is it really a new business • What are the lessons of the 9.00am structure? If so, how does it work? October 2016 Dyn cyber-attack? The fourth industrial revolution? 10.00am • What is the relationship between What is IoT? Where are the Data: who owns, controls and has start-ups, universities and 3.00pm opportunities? responsibility for data generated by established business? Afternoon tea break • More than just “self-driving cars”: IoT devices • What are the key issues for joint bringing the internet into the • Making sense of the “truck load ventures and acquisitions? 3.30pm physical world of sand”: IoT and fine-grained • How can business models adapt Drafting and negotiating key • Standards, platforms and data analysis to embrace IoT? contract terms: what are the main interoperability • Blockchain, distributed ledger • Data and privacy: the risks issues • Streamlined processes and “just and data protection involved in cross border transfers • Intellectual Property (IP) rights in time” fulfillment • Data collection, retention, and offshore storage • Warranties and indemnities: what • Asset-tracking and dynamic analysis and monetisation: who you need to cover contracts benefits? 12.30pm • Limiting and excluding liability • Real-time data and analytics • Data security: who is responsible? Networking luncheon • Drafting for dispute resolution in for government, business and Who is liable? an online world without borders individuals • Compliance in the cloud: how to 1.30pm ensure adequate protection The issue of liabilities 5.00pm 9.15am • What are the principal legal and End of event Dynamic contracts and supply 10.30am compliance risks? chain efficiency Morning tea break • How far does existing law cover • How do “smart” or “dynamic” novel situations likely to arise contracts work? 11.00am from the IoT? • When, how and where are Business structure and IoT • How is the law developing around dynamic contracts formed? • How is IoT development being the world to accommodate IoT? • Do dynamic contracts mean more organised and funded? • Are you at risk of liability just CONTENTS MARCH 2017

38 Employees of a solar farm company walk between panels at the farm in Nakorn Ratchasima province, Thailand. REUTERS/Athit Perawongmetha

COVER STORY FEATURES BRIEFS 20 18 back of consumer 36 3 ALB Innovation In-house Q&A promise Keeping ASEAN The Briefing List 2017 In conversation on track In our annual list with Jeff Bullwinkel, 30 Countries in 6 spotlighting new ideas associate general Time to build Southeast Asia have Q&A and fresh thinking counsel and director In the first of our series plans to build a rail within Asia’s legal of corporate, external on Chinese investment network connecting 6 industry, we spotlight & legal affairs, Asia into Southeast Asian the entire region. Asia Deals 15 organisations that Pacific and Japan, at countries, we look These ambitious are making waves Microsoft at the Philippines, transportation 8 with their innovative which recently signed projects, however, face Appointments approaches 24 a massive investment complex legal and BY RAJ GUNASHEKAR City at the crossroads and financing package regulatory challenges 10 Law firms in Singapore with China Startup Talk are now facing a fairly 38 clear choice: to react 32 Bright future 16 quickly to the changes Brave new world As part of its League Tables happening to the As commercial integrated energy industry, or risk being disputes increase blueprint, the Thai left behind across Asia, support government is placing services for litigation increasing emphasis 28 and arbitration are on solar power, and Looking inwards mushrooming as well, lawyers are already Inbound China M&A with technology firms witnessing an uptick takes flight on the playing a big part in related work

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 1 NEW TRICKS FOR AN OLD PROFESSION. The winds of change sweeping the legal industry have today reached gale-force proportions. Firms are beginning to realise they are under siege, from a combination of increasing competition, changing client habits and fast- evolving technology in the legal space. Severe disruptions to the industry have meant that old ways of thinking are just not PUBLISHER Amantha Chia valid any more, and choosing not to change – or changing [email protected] too slowly – can be a surefire recipe for disaster. If the writing isn’t already on the wall for legal service providers, there’s a MANAGING EDITOR good chance a jolt of the new reality will hit them very soon. Ranajit Dam [email protected] The time, then, has come to discard the old ways and embrace innovation – begin making changes to the way NORTH ASIA JOURNALIST you do the most basic of things, and adopt an attitude of John Kang nimbleness and flexibility along the way. It is not an easy [email protected]

sell, for the legal industry has been notoriously resistant to ASSOCIATE EDITORS change. Just by the virtue of being the kind of word it is, Eileen Ang “innovation” is easily misconstrued and frequently brushed [email protected] off, a fuzzy word that is more closely associated with Raj Gunashekar meaningless management-speak than it should be. [email protected] For at its most simple, innovation implies nothing more SENIOR DESIGNER than simply a new method, idea or product. And that is its John Agra RANAJIT DAM greatest strength as well, for innovation can provide simple [email protected] Managing Editor, solutions to many of the complex problems that the legal Asian Legal Business industry sector today. And this innovation doesn’t have to be TRAFFIC / CIRCULATION MANAGER Thomson Reuters Rozidah Jambari anything absolutely revolutionary. A change in mindset can [email protected] be innovative, as can be rethinking the most basic processes to deliver effective results. So read the writing on the wall, ACCOUNT MANAGERS Shyanne Chen look hard in the mirror and get started. Advertising Sales Manager (India, Indonesia, Malaysia, Singapore) (65) 6870 3253 [email protected]

Henry Cheng Account Manager (Hong Kong, Korea) (852) 2847 2016 [email protected]

Amy Sim Sales Manager (Japan, Singapore, Taiwan) (65) 6870 3348 ERRATUM [email protected] In the “Firms To Watch” feature in the February issue of Asian Legal Sardor Yangibayev Business, the entry for Apisith & Alliance incorrectly stated that Sales Executive (Philippines, Singapore, the firm had appeared before the International Criminal Court. Thailand, Vietnam) It actually appeared in an International Chamber of Commerce (65) 6870 3190 [email protected] arbitration, representing a Japanese claimant. Any inconvenience caused is regretted. SENIOR EVENTS MANAGER Julian Chiew [email protected]

Asian Legal Business is available by subscription. Please visit www.legalbusinessonline.com for details. Asian Legal Business has an audited average circulation of 11,402 as of 30 September 2016.Copyright is reserved throughout. No part of this publication can be SENIOR AWARDS AND 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 OPERATIONS MANAGER accept no responsibility for loss. Tracy Li MCI (P) 060/02/2017 issn 0219 – 6875 [email protected] KDN PPS 1867/10/2015(025606)

Thomson Reuters 18 Science Park Drive Singapore 118229 / T (65) 6775 5088 / F (65) 6333 0900 10/F, Cityplaza 3, Taikoo Shing, Hong Kong / T (852) 3762 3269 www.thomsonreuters.com

2 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM THE BRIEFIBRIEFSNG: YOUR MONTHLY NEED-TO-KNOW BAKERS, A&0 BACK COMING SOON: LEGAL TECH CENTRE LAW FIRM Ulster University in Northern Ireland has launched what is being hailed as the UK’s first “legal innovation centre.” The centre aims to lead the development of technology used in legal services. It is supported by Ulster SCORECARDS University’s law school and its school of Close on the heels of General Electric computing and intelligent systems, as well as creating a “Yelp for lawyers,” helping the law firms Allen & Overy and Baker McKenzie. company’s internal legal teams select outside counterparts to work on matters, comes the news that Groupon is using 34% - Proportion of Japanese evaluation cards to assess their external innovators on 100 Global Innovators counsel. The “scorecards” evaluate law List for 2016 published by firms’ performance on things like cost and also let firms know how they fared Clarivate Analytics. The other Asian compared to others used by the company. jurisdictions on the list were China This lets firms how well they did, as well and Taiwan (1 percent each). as areas for improvement.

81% - Proportion of workers in the legal industry who say they are bored, according to a study by employment specialist Emolument, with repetitive and dull work as the likely cause. “Never in my judicial career have I seen SMALL LAW FIRMS FACE a man fallen BIGLAW CHALLENGES According to Thomson Reuters’ Legal from so high.” Executive Institute, small firms — those with fewer than 30 attorneys — are not immune Presiding judge Mr Justice Andrew $1 bln - Reduction in HSBC’s legal from the changes roiling Biglaw, including Chan Hing-wai at the trial of Hong fee pressure and the growth of technology. In Kong’s former leader Donald Tsang spend globally for 2016, according to its annual report. This follows an increase a survey of 300 small law firms, 78 percent Yam-kuen. Tsang recently became the said acquiring new client business was a city’s highest-ranked official to be put of $500 million in 2015. Last year, the challenge, 62 percent pointed to fee pressure, behind bars after he was sentenced to bank recorded a 62 percent fall in pre-tax while 69 percent cited spending too much 20 months in prison for misconduct profits to $7.1 billion from $18.9 billion. time on administrative tasks.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 3 BRIEFS

creating a 2,300-lawyer firm with that an international law firm revenues in excess of $750 million. and a domestic law firm can work Talks with HEP, a 90-lawyer outfit together in Singapore’s increasingly in Singapore and Brunei well- competitive legal market. Joint known for its disputes work, began law ventures (JLVs) and formal in 2015. The two parties signalled law alliances (FLAs) are among they were close to tying the knot the more popular ones, but EHE after Eversheds moved into the SGX eschewed both in favour of what it Centre, the building housing HEP’s calls a “transformative merger”, or Singapore office, last year. full financial integration. At present, For Eversheds Sutherland, the the only other merger in Singapore merger offers, first and foremost, known to head down that path is local law capabilities. “One of the Morgan Lewis Stamford, which key benefits from this merger is the brought together local law firm ability to participate meaningfully Stamford Law Corporation and the in cases involving Singapore law,” U.S.-headquartered Morgan Lewis said Stephen Kitts, the firm’s & Bockius. Asia managing partner. “This is For EHE, this will mean the particularly important for Eversheds- Eversheds Sutherland Singapore Sutherland’s major global clients, office and business being including international investment transferred to HEP, with the banks and other financial services international partner acquiring organisations, a number of a minority stake (reportedly 33 which have their Asia or regional percent) in the merged firm. “We headquarters in Singapore.” will create a framework to deliver On the other hand, for HEP, growth and generate significant a middleweight Singapore law economies of scale,” said Kitts, ‘INTERNATIONAL firm with big ambitions, the adding that the merged firm merger thrusts it into the global will leverage on Eversheds’ and spotlight. “Eversheds is a bespoke Sutherland’s global name as well international law firm,” said Fong. as the goodwill HEP has garnered STAGE’ BECKONS FOR “Harry Elias Partnership has been in Singapore for over 27 years. a Singapore-centric business. It Kitts noted that the HEP will benefit from being grafted and Eversheds Sutherland HARRY ELIAS AFTER into an established network of partners spent “considerable international practices within the time” debating the strengths and Eversheds family and from getting weaknesses of various business EVERSHEDS MERGER access to the spectra of expertise structures, including FLA and JLV. within Eversheds to provide greater “The strategic goal for both firms fire power in servicing clients locally was to identify the best structure Following in the footsteps of Stamford and regionally. We will be able to that would support long-term, Law Corporation, Harry Elias Partnership (HEP) tap into an immense store of legal sustainable and profitable growth,” has become the latest Singapore law firm to knowledge and technology.” he said. “During these discussions, enter into a full financial merger with a global There are a number of ways it quickly became apparent that brand, in this case Eversheds Sutherland. The new entity, which recently received regulatory approval and is set to launch May 1, will be “This combination will certainly not affect the merged known as Eversheds Harry Elias (EHE). It will firm in terms of its ability to service its clients in the be helmed by Philip Fong, who is the current short term or long term. If anything, the combination will managing partner of HEP. enhance and broaden the firm’s existing abilities.” Almost two years in the making, the merger comes at a busy time for Eversheds, which only - Philip Fong, Harry Elias Partnership recently completed a transatlantic merger with U.S.-based Sutherland Asbill & Brennan,

4 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM BRIEFS

integrate effectively. “We will also Eversheds-Harry Elias could need to transition clients, of course, kick off Singapore’s tie-up and begin a concerted business development and marketing season, but finding the right campaign to promote the new firm partner is key in the local and regional markets,” Headcount of Eversheds The EHE merger might just be the start of a he said. “These plans are already Sutherland prior to its merger wave of team-ups in Singapore, according to 2300with Singapore’s Harry Elias well-advanced and discussions industry watchers. “I do expect that the number of are under way with some of the collaborations between foreign and local firms to largest clients of both firms. increase in general as the Singapore market opens there was both a cultural alignment There remains much to do on the more and more,” said Philip Fong, who will take the and common goals and ambitions. ‘back office’ side, of course, as we helm of EHE starting May. Due diligence was undertaken combine Eversheds Sutherland’s The reasons behind this are numerous. One motivation, according to Fong, is the growing and, in parallel, both firms made a international experience and Harry competition in the Singapore market. “Local number of cross-referrals. This, in Elias’ local market knowledge.” firms will not want to be marginalised as more turn, gave everyone the confidence The merged firm is expected international firms enter the local arena and that a transformational merger was to have more than 100 lawyers and compete for work,” he said. “Local firms will want the best strategy.” fee earners, including 29 partners. to increase their standing to garner more work while “The key consideration was: Of However, integration is not international firms will want to cooperate with local these three modes of collaboration, expected to be a big problem. “EHE firms for jobs involving Singapore law.” However, the way the combinations are set which mode would provide the best is a Singapore firm comprising up will vary widely. “The mode of collaboration chance of fulfilling a key objective mainly of HEP staff and lawyers,” will depend on the peculiarities of the parties,” of both firms, which is to create said Fong. “HEP is a strong firm said Fong. “Some local firms, big or small, value a business that is profitable and with good corporate values, sound independence above everything and would not sustainable?” said Fong. “It was financials and a vibrant people- dream of merging. Some foreign firms are risk- felt that a merger instead of a JLV centred working environment. averse or are not interested in investing money or or FLA was the best option, given This combination will certainly not assets and be a minority partner in a local firm. Some foreign firms may only be interested in specific or the make-up of the firms’ practice affect the merged firm in terms of limited practice areas in Singapore law, and this groups and practice group leaders, its ability to service its clients in the will limit the number of genuine choices available. the culture/ethos/mindset of short term or long term. If anything, Hence, whether there will indeed be more joint the key decision makers, and the the combination will enhance law ventures or mergers… will ultimately depend perceived business prospects of the and broaden the firm’s existing on the foreign and local firms finding the ‘right’ legal industry in the region.” abilities.” counterpart.” According to Fong, one of the That said, he acknowledged Azmul Haque, founder of the recently established boutique Collyer Law, said that initial concerns is to ensure that that the process would take time collaborations would occur only where there were existing business operations are and effort. “An integration plan is clear synergies seen by both Singapore law firms and not disrupted and will continue already in place to smoothen out foreign law firms. “Of late, whether an international seamlessly throughout the the process,” said Fong. law firm seeks a local alliance in Singapore depends integration. “Another key priority He added that the Harry Elias much on its global ambition and strategy, including is to speedily inform present and brand “is and will remain a powerful for Asia, and whether Asia presents a significant potential local and foreign clients brand” in Singapore. “As such, it will opportunity for new revenues, or whether it is merely a ‘defensive play’ to counter leakage of work of the new combination as well as be retained, albeit combined with to other global competitors who do have an the new offerings and capabilities,” the Eversheds brand,” said Fong. office,” he said. he said. “Yet another priority is “This is necessary if we wish to go to ensure that lawyers and staff into and grow on the international coming from each firm get familiar stage, where the Eversheds name with one another quickly so that we is well-known and recognised.” can develop a close understanding relationship forthwith and leverage on one another’s strengths and networks.” For Kitts too, the immediate priority will be to ensure that teams get to know one another and

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 5 BRIEFS

MANAGING PARTNER Q&A: SYCIP What is your strategy to ensure the firm continues to remain successful? SyCip is at the forefront ‘WE NEED TO LEAVE A COLLECTIVE LEGACY’ of legal practice in the Philippines. To stay ahead of the competition, we should Hector M. de Leon, Jr. support given by my partners and operate more efficiently. remain on the cutting edge. was recently named as the and the other members of the Further strengthening the I am confident that with our new managing partner of SyCip community. firm’s system of governance wealth of talent, coupled SyCip Salazar Hernandez will be a definite focus point. with the SyCip work ethic, we & Gatmaitan, one of the What are your top priorities The greatest asset of will remain a cutting-edge Philippines’ largest law firms. as the managing partner of the firm is our people. In firm. The firm will continue He spoke to ALB about his SyCip, particularly for the first this regard, I intend to pay to encourage specialisation strategy for the firm going year or so? particular attention to the and the development of forward, overcoming external As in many other law firms, retention of talent. new practice areas. We will challenges, and what makes a growing the firm’s revenues Finally, several key continue to hire the best talent good law firm leader. remains a top priority. partners are due to retire this from the best law schools However, there are other year and in the next several in the country. The firm will Congratulations on your new things we should focus on. years. The firm needs to also provide the necessary role. How have the initial few I am a firm believer in ensure proper succession into support system that enables months been so far? good governance, which helps the partnership, practice areas our lawyers to practice law in Great! I am thankful for the organisations mitigate risks and key positions. the best manner.

ASIA DEALS $2.75 BLN $1 BLN $3.3 BLN $2.2 BLN NXP Semiconductors’ United Luck Group Holdings’ SoftBank’s acquisition of Sunac China Holdings’ divestment of its Nexperia purchase of Outfit7 Fortress Investment Group investment in Leshi Internet unit to a China-led consortium Deal Type: M&A Deal Type: M&A Information & Technology Deal Type: M&A Firms: Clifford Chance, Taylor Firms: Davis Polk & Wardwell; Deal Type: M&A Firms: Shardul Amarchand Wessing, Odvetniki Šelih & Kirkland & Ellis; Paul, Weiss, Firms: Sidley Austin, Jincheng Mangaldas & Co, De Brauw partnerji, Antis Triantafyllides Rifkind, Wharton & Garrison; Tongda & Neal Blackstone Westbroek, & Sons Skadden, Arps, Slate, Meagher Jurisdiction: China Houthoff Buruma Jurisdictions: China, Cyprus, & Flom; Weil, Gotshal & Jurisdictions: China, India, Slovenia, UK Manges Netherlands Jurisdictions: Japan, U.S.

$880 MLN $184 MLN $2.6 BLN $225 MLN Ant Financial Services’ BSE’s debut on India’s Alibaba Group’s takeover of PAG Asia Capital and acquisition of MoneyGram National Stock Exchange Intime Retail Meridian Capital’s investment International Deal Type: IPO Deal Type: M&A in Food Union Group Deal Type: M&A Firms: AZB & Partners, Clifford Firms: Slaughter and May, Deal Type: M&A Firms: Simpson Thacher & Chance, Nishith Desai & Davis Polk & Wardwell Firms: Clifford Chance, Bartlett; Vinson & Elkins Associates Jurisdiction: China Linklaters, Walkers Jurisdictions: China, U.S. Jurisdiction: India Jurisdictions: Hong Kong, Cayman Islands, U.S.

6 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM “I am a firm believer in good BRIEFS governance, which Where do you see challenges helps organisations our control. Accordingly, we when the firm celebrates its to the firm in the next few mitigate risks and should concentrate on the centennial? years? How would you look operate more things that we can control We will not be to overcome them? efficiently. ” as members of the SyCip remembered for simply I believe that the firm’s community, such as doing our continuing the excellent work major challenges in the work well and providing our that we do or for building on the next few years will relate clients with the best service. success and accomplishments to policy shifts and similar This is the formula that has of the firm. That is expected. developments in the local and sustained the firm despite We need to leave a collective global economic and political the political upheavals and legacy that will make future environment. Non-Philippine severe economic difficulties in generations of SyCip partners clients constitute a significant the past. and lawyers grateful for the portion of our clientele. A things that we started and reduction in the amount of Under your management, grateful for all the things that foreign investments in the local and foreign. This is where is the firm headed in we have accomplished. Philippines may affect the particularly important given the next couple of years? As a managing partner, firm. increased sentiment in other In 2045, SyCip will celebrate I intend to lead that journey While the Philippine countries to have an inward its 100th anniversary. During in achieving our collective economy is expected to grow focus insofar as business and our partners’ meeting in legacy. In the next couple of in the next several years, the investments are concerned. November last year, I asked years, the firm will lay the Philippine government must These challenges are my partners this question: groundwork for the collective foster an environment that is external in nature and How are we going to be legacy we hope to put in place conducive to business, both dependent on matters beyond remembered in 2045, by the centennial.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 7 BRIEFS

APPOINTMENTS

HONG KONG HANDS OUT ANDREW BISHOP PUI HONG CHIK GERALLT (GEZ) OWEN Leaving: Ropes & Gray Leaving: Linklaters Leaving: Withers GENEROUS BUDGET, PAINTS Joining: White & Case Joining: Ashurst Joining: RHTLaw Taylor Practice: Banking Practice: Corporate Wessing Location: Hong Kong Location: Hong Kong Practice: Litigation and Dispute Resolution BRIGHTER OUTLOOK Location: Singapore

Hong Kong handed out billions of dollars in tax cuts and poverty relief last month to reflate its economy, and projected a brighter outlook this year amid growing concerns over rising trade protectionism and higher interest rates. The government bumped up its economic forecast for 2017 by a full percentage point to 2 to 3 percent and said the economy grew at 1.9 percent last year, faster than expected by ANAN SIVANATHAN SZE-SHING TAN PAUL TEO economists. Leaving: Creative Leaving: Clifford Leaving: N/A The trade-reliant economy is carrying Technology Chance Joining: Baker McKenzie more momentum in the new year due to a Joining: Bird & Bird Joining: Baker Practice: Dispute Practice: Intellectual McKenzie.Wong & Leow Resolution pick-up in exports and private consumption, Property Practice: Corporate Location: Hong Kong and a more stable Chinese economy. Location: Singapore Location: Singapore Financial Secretary Paul Chan said in his maiden budget address that an improved labor market and construction projects worth nearly HK$87 billion this year, had also bolstered consumer confidence that would feed into the local economy. Credit Rating Agency Moody’s said in a research note that the budget was relatively balanced and fiscally prudent but doubted Hong Kong would meet its bullish GDP forecast. “We do not expect a material rebound in LIM SIAW WAN MICHAEL P. WONG LAWRENCE YEUNG global trade which will weigh on Hong Kong’s Leaving: Christopher & Firm: K&L Gates Leaving: Boase Cohen Lee Ong Joining: Dechert & Collins exports, while growth in domestic demand will Joining: Wong & Practice: Funds Joining: ONC Lawyers be somewhat dampened by higher interest Partners Location: Hong Kong Practice: IP rates,” Moody’s wrote. “We expect three to Practice: Finance and Location: Hong Kong four interest rate increases by the U.S. Federal Projects Reserve this year which will push interest rates Location: Kuala Lumpur up in Hong Kong.”

8 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM SPONSORED ARTICLE

The Rise of Financial Technology in Indonesia

In this digital era where technology has a key and the information data server must be located in role in society, more and more businesses will be Indonesia. embracing the growth of technology, including the financial business sector. According to a Bank In POJK 77/2016 the Providers (Fintech companies) Indonesia report, a large market in Indonesia has are not allowed to give loans to the Borrowers, been overlooked by the conventional financial sector, instead the loans must be given by the Lenders hence financial technology (“Fintech”) businesses to the Borrowers through the Providers. Please be have been flourishing. However, the growth of informed that OJK does not restrict offshore parties Fintech should be followed by comprehensive to become the Lenders. In addition, OJK limits regulations to protect the balance role of formal the loans that can be given to the Customers, i.e. and informal financial sectors and to mitigate risks maximum of IDR 2 billion (each). The Providers through regulatory manners without hampering the are required to have escrow and virtual accounts innovation in financial services sectors. RICHARD YAPSUNTO NOVELETA DINAR to conduct this kind of transaction; this provision is Partner on Investment, Associate to ensure that the Providers’ private accounts are In general, Fintech business activity may consist Banking & Finance and [email protected] separated from the transaction accounts to avoid of 3 (three) categories, namely: (i) Fintech with Merger & Acquisition any conflicts of interest that may occur. business activities similar to conventional financial [email protected] institutions; (ii) Fintech with business activities In the near future, we hope the government will supporting the conventional financial institutions; promulgate other necessary regulations to ensure and (iii) Start-up businesses with the potential of the sustainable growth of Fintech businesses in transforming into Fintech businesses. The latter others, to protect customers of Fintech companies, Indonesia. category can be in the form, including but not limited to supervise activities that are carried out by Fintech to, Peer-to-Peer (P2P) lending and crowdfunding. companies and to develop a clear and reliable In relation thereto, Indonesian Financial Services database of Fintech companies. The POJK 77/2016 Authority (“OJK”) has finally enacted a regulation requires each and every Fintech companies to have Armand Yapsunto Muharamsyah & Partners for Fintech that carries out business in P2P lending. paid-up capital of IDR 1 billion when it registers its Permata Kuningan, Penthouse Floor Jalan business and to raise its capital to a minimum of Kuningan Mulia, Kav.9C Jakarta, 12980 The OJK Regulation No. 77 Year 2016 concerning IDR 2.5 billion when it applies for a business license. T: (62) 21 8370 7777 Information Technology Based Loan Services Some of the salient points are foreign investors may F: (62) 21 8370 7771 (“POJK 77/2016”) – has several purposes, among have max 85% of shares in the Fintech company W: www.aymp.law

NORTON ROSE FULBRIGHT AND CHADBOURNE & PARKE TO MERGE

Norton Rose Fulbright announced on Tuesday it partner for the Americas. Both firms represent energy would merge with New York-based Chadbourne & Parke companies and advise on deals in Latin America. to form a firm of some 4,000 lawyers with offices in 32 Among clients the two firms both represent are countries. Deutsche Bank AG, Banco Santander SA and French The deal is expected to close in the second quarter energy company Engie SA. The merger will also give and the combined firm will use the Norton Rose Fulbright Norton Rose a larger presence in New York, where many name. of Chadbourne’s lawyers are based. It is the latest merger for London-based Norton Rose Legal industry consultant Jon Lindsey of Major Total 32number of Fulbright, already one of the world’s largest law firms Lindsey & Africa said law firms are facing economic countries in with about 3,700 lawyers. The current firm is the result pressure as large corporations bring more legal work which the of successive mergers, most notably a 2013 tie-up with in-house or outsource to cheaper alternative service merger firm the former Texas firm Fulbright & Jaworski. providers. In such an environment, mergers are attractive will have a presence. Mergers in the legal industry have been on the rise to many firms, Lindsey said. Big firms are better able to since the 2008 financial crisis amid stagnant demand and withstand drops in demand in particular areas and are intense competition. There were 85 law firm mergers and also able to afford the global presence clients increasingly acquisitions in 2016, according to a report by the legal demand, he said. consulting firm Altman Weil, down just slightly from a Chadbourne has seen its revenue drop substantially record high of 91 in 2015. in recent years as high-profile partners have left for other Chadbourne is best-known for advising banks on firms. Norton Rose had $1.732 billion in global revenue in project finance deals around the world. its most recent fiscal year, a 3 percent decrease from the Chadbourne and Norton Rose have “complementary year before. In a June 2016 statement, the firm blamed the practices,” said Daryl Lansdale, Norton Rose’s managing drop in revenue on exchange rate fluctuations.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 9 BRIEFS STARTUP TALK GOWLING WLG IN SINGAPORE ASSOCIATION LEGALESE WITH JURISASIA YEAR OF FOUNDING: 2015 Recently merged law firm Gowling WLG has entered into

an exclusive association with JurisAsia, a Singapore intellectual HEADQUARTERS: property boutique. Headquartered in Singapore, it also has team members JurisAsia was founded recently by IP specialist Sheena in the U.S., the UK, India, Canada and Thailand Jacob, who spent six years as a partner with Bird & Bird ATMD in Singapore, prior to shorter stints at Joyce A. Tan & Partners and FOUNDERS: Tan Rajah & Cheah. Computer scientist Wong Meng Weng, “recovering The firm’s other partner is Arthur Yap, formerly of Tan Kok lawyer” Alexis Natalie Chun, and startup domain expert Quan Partnership and Bird & Bird. Meanwhile, Gowling WLG’s Ong Chiahli Singapore office also has two partners, including office head WHAT THEY DO: Andrew Dobson. Gowling WLG was formed last year following the merger Legalese is an open-source software company aiming of Canada’s Gowlings and the UK’s Wragge Lawrence Graham, to “eventually replace contract-drafting lawyers with contract-drafting software.” which in turn was created as a result of a merger between Wragge & Co. and Lawrence Graham (LG). Dobson joined Lawrence TARGET MARKET: Graham in 1995. For now, startups raising their first funds and in need of The legacy LG previously had a licence to practice as a foreign fundraising documentation. “By some estimates, 70 percent firm in Singapore, as well as an alliance with local practice PK of people who need a lawyer don’t hire one. So at the start, Wong & Associates. we’re neither competing with lawyers nor those willing to pay for one. We’re targeting users who cannot afford to hire a lawyer and thus are tempted to do-it-yourself,” they say.

CAPITAL RAISED TILL DATE: Legalese has received two grants over the last year: an SINGAPORE: TAYLOR VINTERS EYES ASIA GROWTH, $8,800 String Labs Grant and a $23,000 ISIF Technical MERGES WITH VIA LAW CORP Innovation Grant. “As we were oversubscribed for our angel round, we had to split it into two tranches,” Legalese says. U.K.-headquartered Taylor Vinters existing Singapore business into has acquired a stake in Via Law Via Law while Via Law will become HOW THE IDEA CAME ABOUT: Corporation, a Singapore-based a corporate partner in Taylor Prior to Legalese, founders Wong and Ong were involved boutique firm that specialises in Vinters. in helping startups with fundraising documentation, intellectual property and TMT, as “In Singapore, foreign execution and advice. Trudging through legal contracts and part of its plan to expand in Asia. ownership rules restrict the documentation, they realised that lawyers use computers The combined new entity will investments international firms to help them with the typing, but not with the thinking. carry out business under the name are permitted to make in local “Over the last 50 years, software engineers have developed Taylor Vinters Via, which is subject law firms, so we have developed hundreds of tools across a dozen genres, all aimed at to regulatory approval. It will a novel cross-ownership structure. improving productivity. By contrast, the legal industry has have an eight-member team that This will provide a strong platform only two tools: Microsoft Word’s track changes, and the includes directors Yingyu Wang for success by enabling us to more email attachment. But what if a programming language and Bryan Ghows. effectively align and integrate our could be designed to express contracts as programs?” they Under the terms of this deal, businesses,” said Taylor Vinters asked. And Legalese was born. Taylor Vinters will transfer its CEO Matt Meyer in a statement.

10 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM SPONSORED ARTICLE

Simplification Business Operation License

It is widely known that Indonesia is currently business environment in a more effective and spurring its economic growth and accordingly it efficient manner. is noted that there have been numerous efforts to improve ease of doing business climate. As a result However, in practice, although the process has Indonesia’s ranking in the Ease of Doing Business improved significantly some difficulties may still index for 2017 has gone up 15 levels from 106 to 91. be encountered and the companies shall predict all This ranking came after Indonesia has established possibilities. It is noted that those licenses basically the 3-hour Licensing Service for classified large are construed as the business legality and official investors. Currently, another effort to improve information source for any interested party about the the ranking is to simplify the administration of identity and business description of the company. licensing extension requirement for the existing In the case of SIUP, since there is no obligation to companies. renew it, the issue may arise once the company change their data such as company name, status, VERONICA THERESIA HESTI Some of the well noted examples of the effort are director, address, main business field, net asset, etc. SITUMORANG OKTAVIANI that the Indonesia’s Ministry of Trade (“MoT”) has Managing Partner Senior Counsel recently issued 2 important regulations namely In light of the above, although currently there is no veronica@ theresia@ Ministry of Trade Regulation No.07/M-DAG/ such obligation to renew SIUP, companies still need dknslawyers.com dknslawyers.com PER/2/2017 (“MoTR 07/2017”) and Ministry of to do so once changes their business information are Trade Regulation No.08/M-DAG/PER/2/2017 made. This is the critical point in which companies (“MoTR 08/2017”). These 2 regulations show need to pay attention as consistent information in important development for improving doing companies are only required to submit a notification its deed and business licenses may be critical for business climate. letter and the copy of original TDP which can be their business operation. done manually or electronically. MoTR 07/2017 removes the requirement for company to do a re-registration of the Trade It is widely known that registration of the said Business License or Surat Izin Usaha Perdagangan licenses may go through the frustrating and time- DK & Situmorang Lawyers (“SIUP”). Previously SIUP had to be re-registered consuming process. The requirements of this Wisma Bakrie 2, 12th Floor, Jl. HR. Rasuna Said every 5 years. Meanwhile MoTR 08/2017 simplifies license extension were also considered as a burden Kav. B-2, Jakarta 12940 - Indonesia the extension of Company Registration Certificate and more expenses may be needed to process re- T: (62) 21 2513401, 2513402 or Tanda Daftar Perusahaan (“TDP”). Especially on registration of these licenses. Hence, the issuance F: (62) 21 2513403 TDP which needs to be extended after its expiration, of these regulations would cleanse Indonesian E: [email protected]

SINGAPORE ADVISORY PANEL EYES NEW DRIVERS OF ECONOMIC GROWTH

A key Singapore advisory most advanced economies,” the 2017 budget speech, due panel has proposed a 10-year the Committee on the Future on Feb. 20. strategy aimed at ensuring Economy (CFE) said in its Asked about possible annual economic growth of report, released in February. specific changes to the tax 2-3 percent, mainly centred on In 2016, Singapore’s % system, Finance Minister Heng trade partnerships, deepening economy grew 1.8 percent, 1.8Singapore’s growth rate in 2016, Swee Keat said at a press the workforce’s tech skills and its lowest pace of growth its slowest since 2009 briefing that will be addressed digitalising the economy. since 2009, when the through a separate process, It also recommended global financial crisis including consultations. a review of Singapore’s tax sent international trade consulted 9,000 stakeholders, Economists said the system so that it remains plummeting. including trade associations, government might be looking pro-growth and competitive, Singapore has a history public agencies, unions, at increasing the sales tax or while also “broad-based, of conducting broad reviews companies and students, the income tax for the high progressive and fair” to adjust of its economic strategy going before putting forward its earners, while potentially to an ageing society but it did back to the 1960s and 1970s, proposals. lowering the flat 17 percent not go into details over how and most recently in 2010, Prime Minister Lee corporate tax. that should be shaped. with the government following Hsien Loong said in a letter “Every country in the “Over the next decade, most proposals. attached to the report that world right now wants to cut our collective efforts should The CFE, formed of the government accepted the their corporate tax rate, the enable us to grow by 2-3 some government officials, proposed strategies and would U.S. included,” said Michael percent per year on average, prominent CEOs and pursue all of them. Ministers Wan, an economist for Credit exceeding the performance of specialists in various fields, will provide a response during Suisse.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 11 BRIEFS

China has been losing out to the New York Stock Exchange (NYSE) and Nasdaq CHINA ‘CONSIDERS FASTER on key technology listings, so more IPOs at home could mean millions of yuan in IPO APPROVAL’ TO LURE revenue for Chinese investment banks, who dominate domestic stock issuance. There are about 700 companies LARGE TECH DEALS waiting for a green light from the China Securities Regulatory Commission (CSRC) to go public in Shanghai or Shenzhen. China’s securities regulator is Though the regulator has increased considering offering a shortcut for some the pace of approvals in recent months, of the country’s largest technology that still leaves a typical 18-month wait companies to list their shares, allowing or longer before companies are able to them to jump a long line of applicants and raise funds, making the domestic market boost domestic bourses, according to six unattractive to fast-growing technology people with knowledge of the proposals. companies in need of funds to fuel their The sources said companies being expansion. considered for the shortcut could include In September the CSRC tweaked Alibaba Group’s Ant Financial affiliate, the the rules to let companies in some world’s most valuable financial technology impoverished Chinese regions skip the company; Zhong An Online Property and line, sharply reducing the vetting period FIELDFISHER Casualty Insurance, and security software for those issuers. SETS UP SHOP IN maker Qihoo 360 Technology Co. In January, companies in the Xinjiang SHANGHAI Ant Financial, valued at $60 billion Uyghur Autonomous Region that borders at its most recent funding round last year, Russia and Mongolia were among those Fieldfisher has expanded its is expected to be one of 2017’s largest benefiting from faster approvals. presence in China by launching initial public offerings (IPOs). While Ant The sources said the CSRC had held its Shanghai office – its second hasn’t specified a preferred listing venue, talks with the technology companies for in the country – just months after the UK-headquartered analysts and bankers have previously said months, but no final decision had yet been firm opened in Beijing via a the deal will likely take place in Hong reached on whether to allow the faster merger with local boutique JS Kong, given the line in the mainland. approval. Partners. According to a media statement, the Shanghai branch will be led by Liang Xing, a corporate specialist who focuses on antitrust and competition, particularly in the life sciences, technology and hotels and leisure sectors. He was previously a partner at Mylink Law Office. Rocky Wu, a dual- qualified lawyer and patent agent specialising in patent applications and litigation, will also be part of the new office. He was formerly a partner at Beijing-based Jincheng Tongda & Neal. Fieldfisher is also expected to relocate Beijing- based partners Baoen Bai and Ming Zhang to Shanghai. By June, the firm plans to bring in An advertising board (L) showing a Chinese stone lion is pictured near an entrance to the headquarters (R) of four more partners to the new China Securities Regulatory Commission (CSRC), in Beijing, China, September 7, 2015. REUTERS/Jason Lee office.

12 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM SPONSORED ARTICLE

In India, an International Arbitration award is enforceable against non-signatories also

In the recent times, Indian Courts are order, because the Arbitrator did not have the taking a progressive approach in the matter jurisdiction over the non-signatories to the of international arbitration by ensuring contract. The Single Judge of the high Court enforcement of foreign seated international agreed with the contention of the appellants arbitration awards. After the amendments and held that the award dated 28th March, made to the Arbitration & Conciliation 2010 was enforceable against DMC MCL Act,1996 with effect from October 2016, the alone and not against the non-signatories to scope of interference by courts in the award the contract. enforcement under the excuse of Public policy is minimized. One of the common Hence the challenge reached the Division challenge raised in India while objecting Bench of Mumbai High Court. The Mumbai the enforcement of an international arbitral high Court reversed the Judgment of the award is that the contesting parties were single Judge mainly on the following grounds: not signatories to the arbitration agreement 1. The Arbitration and Conciliation Act, based on which the award under question 1996 differentiates the parties to the was passed. For a normal person, it looks agreement and parties against whom like a very strong ground to challenge the the award is sought to be invoked by enforcement of an arbitral award, since the distinguishing them in S.48(1)(a) and arbitrator is the creature of the arbitration S.48(1)(b). Hence the said Act recognizes agreement and the jurisdiction of the enforcement against non-signatories arbitrator cannot extend beyond the parties also. to the contract. Even though the above S RAVI SHANKAR 2. The Supreme Court of India positively said proposition is in general a correct Managing Partner has recognized kompetenz-komptenz one, there can be exceptions to it. One of [email protected] in various judgements and hence the internationally accepted exemption is arbitral tribunal has its own jurisdiction “piercing the corporate will”. In a recent to rule on its own jurisdiction regarding Judgment, Integrated Sales Services (ISSL) the existence, scope or validity of the Vs Arun Dev & others, 2017 SCC Online Bom invoked the arbitration clause seeking various arbitration agreement. 1, a Division Bench of Mumbai High Court remedies against DMC MCL, DMCG, GBC & 3. The party seeking for refusal of allowed the enforcement of an international GBT. It is important to note that DMCG, GBC enforcement must provide evidence of arbitration award be enforced against non- & GBT are not parties to the contract between high degree as required under S.48(1) signatories to the contract. DMC MCL and ISSL. and cannot just rely on pleadings. This is because the findings recorded by the The facts of the case are as follows. A Hong Even though there were various contentions international arbitral tribunal would Kong based Company Integrated Sales between the parties, the main contention of constitute evidence in support of such Service Limited (ISSL) entered a contract the non-signatories was the issue of lifting conclusion and in the present case the with a Company based in Nagpur India the corporate veil, to make them parties to party has failed to do so. namely DMC Management Consultants the arbitration. Finally, the Sole Arbitrator 4. In India, the concept of lifting the Limited (DMC MCL). As per the contract made the award holding that the principle of corporate veil and alter ego doctrine are ISSL had to represent DMC MCL and sell its alter ego has been applied as a justification now judiciously recognized exceptions to products to the customers on commission for lifting the corporate veil. It was held the rule that a corporation in law has a basis. The applicable laws for the above said that DMC MCL, GBC and GBT had colluded separate and distinct legal entity of its contract was laws of Missouri, United States together for breaching the representation own. of America and in case any disputes arise agreement between ISSL & DMC MCL. It was between the parties, American Arbitration finally held that ISSL is eligible to receive Association shall appoint the sole arbitrator damages to the tune of USD 6948100. The who will decide the issues. IISL brought two Parties made liable to pay were DMC MCL, customers to DMC MCL and it was eligible DMCG, GBC and GBT. Law Senate to get the commission from DMC MCL. B3/73, Safdarjung Enclave, LGF, New Delhi In the meantime, DMC MCL formed DMC ISSL brought enforcement proceedings 110029 India Global Inc for getting some tax benefits. In in Nagpur, India in the District Court. The 403, Tardeo AC Market, Tardeo Road, addition to that DMC MCL to avoid paying District Court recognized the said award and Mumbai 400034 India commission to ISSL entered contracts with made it eligible to enforce as a decree of the T: (91) 11 26102873 Gemini Bay Consulting Limited and Gemini court. Hence the parties approached the High E: [email protected] Bay transcription Pvt Limited. Hence ISSL Court, challenging the said District Court W: www.lawsenate.com

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 13 BRIEFS

private companies to disclose who their true owners are. The new rules would introduce a direct licensing regime for agents that set up and manage the paperwork for thousands of trusts and “letter box” shell companies that have no real business operations. The FSTB says it is concerned that the system may be used by criminals to conceal and launder illicit proceeds. The trust and company agents, as well as lawyers, accountants, and real estate agents, will have a statutory obligation to perform a range of checks Smartphone with Mossack Fonesca logo is seen in front of a display of U.S. banknotes in this illustration taken April 11, 2016. REUTERS/Dado Ruvic on clients and their source of funds under the proposals. They will have to report any suspicious transactions or face the threat of prosecution, and be required to keep records for six years. HONG KONG TAKES AIM AT Hong Kong financial firms have been subject to strict anti-money laundering MIDDLEMEN IN WAKE OF laws introduced in 2012 but the service sector has until now been operating under self-regulatory regimes without the force PANAMA PAPERS SCANDAL of law. Private Hong Kong companies would CAM PIONEERS USE be required for the first time to obtain OF AI FOR LEGAL Hong Kong is beefing up its and hold up-to-date information on their SERVICES IN INDIA anti-money laundering and corporate true owners and controlling parties, and disclosure laws in a move that some provide this information to the authorities India-based Cyril Amarchand Mangaldas (CAM) has signed financial crime specialists say could lead upon request. Failure to keep accurate an agreement with Kira to the exodus of billions of dollars in records would be a criminal offence. Systems, a Canada-based assets from the territory as people seek The changes should be implemented machine learning software to avoid increased scrutiny. “as a matter of priority” to meet provider, to improve the The Chinese territory’s government requirements outlined by the Financial efficiency, accuracy and speed has been rattled by last year’s Panama Action Task Force (FATF), the global body of the firm’s delivery model for Papers scandal, which showed that Hong that sets standards for combating money legal services. Kira is a tool that uses Kong was the most active center in the laundering, ahead of its review of Hong artificial intelligence to world for the creation of shell companies. Kong next year, the FSTB said in the identify, evaluate and derive They have many legitimate purposes but proposals. clauses and other information can also be used to hide assets and evade They also come as China, the from contracts and other types taxes. largest source of the money channeled of legal documents. It also has Some of these entities were linked into offshore centers, according to the integrated machine learning to powerful Chinese politicians, creating Panama Papers documents leaked to the models for different transaction requirements across practice a potential embarrassment for Chinese International Consortium of Investigative areas. President Xi Jinping, who has been Journalists, battles to stem capital International law firms conducting an anti-corruption crusade in outflows. like Clifford Chance also use the past few years. Nearly $1.4 trillion of illicit money, Kira software. Meanwhile, Through legislative proposals derived largely from corruption, tax several firms including Baker published without any fanfare last evasion, and money laundering, flowed & Hostetler, Linklaters and month, Hong Kong’s Financial Services out of China between 2004 and 2013, Pinsent Masons have started experimenting with AI in and Treasury Bureau (FSTB) seeks to according to think tank Global Financial workflow processes in their impose anti-money laundering laws on Integrity. Much of that went through Hong firms. non-financial businesses and to require Kong, say the financial crime experts.

14 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM BRIEFS

REGIONAL UPDATE: HONG KONG REGIONAL UPDATE: SINGAPORE

“STRENGTHEN ENTERPRISE CAPABILITIES TO INNOVATE AND STOCK PRICE VOLATILITY ON SCALE UP”: REGULATORY CHANGES IN LINE WITH STRATEGY 3 HONG KONG GEM BOARD LISTINGS OF THE COMMITEE ON THE FUTURE ECONOMY (“CFE”) REPORT

On 20 January 2017, the Securities and Futures The CFE was convened to review Singapore’s economic Commission of Hong Kong (“SFC”) and the Stock strategies, and this brief examines proposed regulatory Exchange of Hong Kong Limited (“HKSE”) (collectively, changes in line with strategy 3 of the 7 strategies “Joint Regulators”) issued a statement (“Joint recommended in the recent CFE Report. Statement”) regarding stock price volatility on the HKSE Growth Enterprise Market (the “GEM”). According Recommendation 3.1: Strengthen our Innovation to the Joint Statement, the average first-day price gain Ecosystem for all stocks listed on GEM was 743% and 454% in 2015 The CFE recommended strengthening the intellectual and the first half of 2016 respectively. Furthermore, property (“IP”) ecosystem to better support innovation stock prices of half of the top 10 first-day gainers listed and technology adoption. Accordingly, the Intellectual on GEM in 2015 decreased by over 90% within a month Property Office of Singapore will update the IP Hub of their peak. The Joint Regulators have also identified Master Plan to assist innovators and enterprises to extract instances in which a substantial majority of placing value from their IP. The IP Development Incentive will also be introduced, under which a lower rate of income tax will shares were allocated to a small number of placees apply to qualifying income. whereas the remaining shares were offered to a large number of placees, resulting in a high concentration Recommendations 3.2 & 3.3: Support Enterprises to of shareholdings. Also, a number of investors were Scale Up & Catalyse the Private Sector to Provide More recurrently identified as top placees in unrelated GEM initial public Growth Capital offerings (“IPOs”). The CFE recommended helping high-growth enterprises scale up and internationalise by providing targeted assistance, including access to The Joint Regulators raised regulatory concerns over such market networks, mentors, technology and financing. It also recommended observations, the need to comply with the GEM listing requirements providing enterprises with growth capital, by encouraging a variety of for an adequate spread of shareholders and the role and expected level private sector funding, such as from venture capital (“VC”) and private of duties of each of the parties participating in the listing in addition equity funds. to the potential consequences if the regulatory rules and policies are not observed. Additionally, the Joint Regulators warned that any In line with the above, the Monetary Authority of Singapore (“MAS”) arrangements for preferential treatment to placees must be disclosed announced on 14 February 2017 that to enhance financing provided to small and are subject to disapproval and cautioned that, where appropriate, and medium sized enterprises (“SME”s), finance companies will be allowed they will take action against listing applicants, sponsors, underwriters to offer greater uncollateralised loans to businesses. The aggregate total or placing agents who breach relevant GEM listing rules, policies and uncollateralised lending limit will be increased from 10% to up to 25% of related procedures to ensure that listing is conducted in a “fair and a finance company’s capital funds. The limit for uncollateralised lending orderly manner”. On the same occasion and supplementary to the Joint to a single borrower will be raised from S$5,000 to 0.5% of such finance Statement, the SFC has also issued a guideline to provide guidance to company’s capital funds. sponsors, underwriters and placing agents on the standards of conduct that is expected of them in the listing and placing of GEM IPO stocks. MAS also announced its intention to liberalise its policy of not allowing a foreign takeover of a finance company. In particular, MAS will consider Given the nature of high stock price volatility companies listed on GEM, applications for mergers and acquisitions should the prospective merger securities traded on GEM are more susceptible to high market volatility partners and/or acquirers: than securities traded on the Main Board of the HKSE. Prospective 1. commit to maintaining SME financing as a core business of the investors are cautioned of the potential risks of investing in such particular finance companies; companies listed on GEM and they should only make decisions after 2. demonstrate expertise in SME financing; and 3. present proposals that may enhance the finance company’s SME informed and thorough considerations. Finally, sponsors, underwriters lending activities. or placing agents should expect heavier regulatory burden over their conduct in GEM IPOs. On 15 February 2017, MAS published a consultation paper which proposed a simplified authorisation process and regulatory framework for VC Managers, whereby they will not be required to have directors and representatives with at least five years of relevant experience in fund management. Under the proposed framework, the base and risk-based capital requirements generally applying to fund managers, and the requirements of independent valuation, internal audits and submission of audited financial statements to MAS, will not be applicable to VC managers.

Ms. Vivian Chan Mr. Bon-G Ng Ms. Nicole Tan Ms. Jasselyn Seet Principal (Corporate Practice) Associate (Corporate Practice) Legal Associate (Corporate Practice) Legal Associate (Corporate Practice) T: (852) 2878 8820 T: (852) 2878 8826 T: (65) 6322 2237 T: (65) 6322 2208 F: (852) 2878 8615 F: (852) 2878 8615 F: (65) 6534 0833 F: (65) 6534 0833 E: [email protected] E: [email protected] E: [email protected] E: [email protected]

Vivian Chan Law Office (in association with Loo & Partners LLP) Loo & Partners LLP Unit 3810, Level 38, ICBC Tower, 3 Garden Road, Central, Hong Kong 143 Cecil Street, Level Ten, GB Building, Singapore 069542 www.vclaw.com.hk www.loopartners.com.sg

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 15 BRIEFS

NORTH ASIA LEAGUE TABLES

CHINA ANNOUNCED M&A LEGAL RANKINGS HONG KONG ANNOUNCED M&A LEGAL RANKINGS

No. 1 - Tian Yuan Law Firm No. 1 - Skadden

MERGERS & ACQUISITIONS SNAPSHOT Value ($MLN)LEAGUE TABLES Value ($MLN) I. LEAGUE3,040.0 TABLE - NORTH ASIA LEGAL AND FINANCIAL RANKINGS 2,861.4 NORTH ASIA AnnouncedDeals: M&A Legal5 / Market Rankings Share: - Based 4.6 on Value NORTH ASIA AnnouncedDeals: M&A 1 Financial/ Market RankingsShare: 14.2 - Based on Value Value No. of Market Value No. of Market Legal Advisor Financial Advisor RankRank Legal Advisor (US$mln)Value ($MLN)DealsDeals MarketShare RankRank Legal Advisor Value(US$mln) ($MLN) DealsDeals MarketShare 1 Paul, Weiss 8,427.6 4 S8.6hare 1 Morgan Stanley 13,124.0 13 Share13.4 2 LinklatersCleary Gottlieb Steen & Hamilton 7,135.32,850.0 2 2 7.34.3 2*2 ClearyJP Morgan Gottlieb Steen & Hamilton 12,714.12,086.4 41 10.413.0 3 WeilSimpson Gotshal Thacher & Manges & Bartlett 7,087.02,752.6 4 3 7.24.2 2*3 KirklandGoldman & Ellis Sachs & Co 2,086.4 8,893.9 71 10.49.1 4 Sullivan & Cromwell 6,914.8 5 7.1 4 Evercore Partners 8,177.6 3 8.3 4 Herbert Smith Freehills 2,451.9 2 3.7 4 Sullivan & Cromwell 1,865.9 3 9.3 5 Davis Polk & Wardwell 6,087.3 4 6.2 5 Lazard 7,910.3 4 8.1 65 GilbertSkadden + Tobin 5,990.12,450.0 2 1 6.13.7 5*6 CliffordCiti Chance 1,000.0 5,382.0 121 5.05.5 6*7 ClearyWeil Gotshal Gottlieb & S Mangesteen & Hamilton 5,881.32,086.4 5 1 6.03.2 5*7 TaylorSomerley Wessing LLP 1,000.0 4,390.7 61 5.04.5 6*8 KirklandMorrison & & Ellis Foerster 5,528.22,086.4 2 1 5.63.2 7 8 FreshfieldsDeutsche BankBruckhaus Deringer 3,664.9844.3 51 4.23.7 9 Fried Frank Harris Shriver & Jacobson 5,298.9 2 5.4 9 China International Capital Co 3,291.7 3 3.4 108 KingKirkland & Wood & Ellis Mallesons 5,215.11,870.8 4 4 5.32.8 810 ZhonglunCITIC W&D Law Firm 2,930.7491.0 21 2.43.0 (*tie)9 DavisBased onPolk Rank & WardwellValue incl. Net Debt of announced M&A 1,868.9deals (excluding withdrawn2 M&A)2.8 (*tie)9 MorrisonBased on &Rank Foerster Value incl. Net Debt of announced M&A479.3 deals (excluding withdrawn1 2.4 M&A) 10 Sullivan & Cromwell 1,865.9 3 2.8 10* Linklaters 374.3 1 1.9 II. LEAGUE TABLE - LEGAL (*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) CHINA Announced M&A Legal Rankings HONG KONG Announced M&A Legal Rankings Value No. of Market Value No. of Market Legal Advisor Legal Advisor Rank (US$mln) Deals Share Rank (US$mln) Deals Share 1 JAPANTian Yuan ANNOUNCED Law Firm M&A LEGAL 3,040.0 RANKINGS5 4.6 SOUTH1 Skadden KOREA ANNOUNCED M&A LEGAL2,861.4 RANKINGS1 14.2 2 Linklaters 2,850.0 2 4.3 2* Cleary Gottlieb Steen & Hamilton 2,086.4 1 10.4 3 Weil Gotshal & Manges 2,752.6 3 4.2 2* Kirkland & Ellis 2,086.4 1 10.4 4 Herbert Smith FreehillsNo. 1 - Paul, Weiss 2,451.9 2 3.7 4 SullivanNo. & Cromwell 1 - Shearman & Sterling 1,865.9 LLP 3 9.3 5 Gilbert + Tobin 2,450.0 1 3.7 5* Clifford Chance 1,000.0 1 5.0 6* Cleary Gottlieb Steen & Hamilton 2,086.4 1 3.2 5* Taylor Wessing LLP 1,000.0 1 5.0 6* Kirkland & Ellis 2,086.4 1 3.2 7 Freshfields Bruckhaus Deringer 844.3 1 4.2 8 King & Wood Mallesons 1,870.8 4 2.8 8 Zhonglun W&D Law Firm 491.0 1 2.4 9 Davis Polk & Wardwell 1,868.9 Value ($MLN)2 2.8 9 Morrison & Foerster Value 479.3 ($MLN)1 2.4 10 Sullivan8,177.6 & Cromwell 1,865.9 3 2.8 10* Linklaters370.0 374.3 1 1.9 0 Deals: 3 / Market Share:0 43.3 - 0 0.0 Deals: 1 / Market Share: 9.8 (*tie) Based on Rank Value incl. Net Debt of announced M&A deals (excluding withdrawn M&A) (*tie) Based on Rank Value incl. Net Debt of announced M&A deals (excluding withdrawn M&A) Market Market Rank Legal Advisor Value ($MLN) Deals Share Rank Legal Advisor Value ($MLN) Deals Share JAPAN Announced M&A Legal Rankings SOUTH KOREA Announced M&A Legal Rankings 2 Simpson Thacher & Bartlett Value6,383.7 No. of2 Market33.8 2* Taft, Stettinius & Hollister Value186.5 No.1 of Market4.9 Legal Advisor Legal Advisor Rank3* Cleary Gottlieb Steen & Hamilton (US$mln)5,048.9 Deals1 Share26.7 Rank2* Mills & Reeve (US$mln)186.5 Deals1 4.9Share 3*1 FriedPaul, FrankWeiss Harris Shriver & Jacobson 8,177.65,048.9 3 1 43.326.7 2*1 AtsumiShearman & Sakai & Sterling LLP 186.5 370.0 11 4.99.8 2 Simpson Thacher & Bartlett 6,383.7 2 33.8 2* Taft, Stettinius & Hollister 186.5 1 4.9 3* Morrison & Foerster 5,048.9 1 26.7 2* Grandall Law Firm 186.5 1 4.9 3* Cleary Gottlieb Steen & Hamilton 5,048.9 1 26.7 2* Mills & Reeve 186.5 1 4.9 3* SFriedullivan Frank & Cromwell Harris Shriver & Jacobson 5,048.95,048.9 1 2 26.7 62* BlakeAtsumi Cassels & Sakai & Graydon 15.9186.5 11 0.44.9 3*7 DavisMorrison Polk & & FoersterWardwell 5,048.94,218.4 1 2 26.722.3 7*2* EvershedsGrandall Law Firm 186.5 - 11 0.04.9 8*3* Cravath,Sullivan S&waine Cromwell & Moore 5,048.93,128.7 2 1 26.716.6 7*6 WeilBlake Gotshal Cassels & Manges & Graydon -15.9 11 0.00.4 7 Davis Polk & Wardwell 4,218.4 2 22.3 7* Eversheds - 1 0.0 8* Debevoise & Plimpton 3,128.7 1 16.6 - - - - - 8* Cravath, Swaine & Moore 3,128.7 1 16.6 7* Weil Gotshal & Manges - 1 0.0 8* SDebevoisekadden & Plimpton 3,128.73,128.7 1 1 16.6 - 0 - 0 - - 0- -0.0 8* Skadden 3,128.7 1 16.6 - Subtotal with Legal Advisor 572.5 5 15.2 (*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) - Subtotal without Legal Advisor 3,201.7 157 84.8

0 ANY NORTH0 ASIA - INVOLVEMENT0 0.0ANNOUNCED M&A ACTIVITY - QUARTERLY TREND

Series1 Series2 440 391.6 4,000 Transactions of No. 390 338.1 3,500 340 304.7 3,000 278.3 276.1 290 254.9 251.5 235.6 2,500 240 201.9 194.5 2,000 169.1 190 143.2 144.7 143.0 1,500 115.0 131.8 116.3 123.2 140 95.4 92.5 98.0 1,000 90 500

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

Notes: 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. Data accurate from 1 January to 27 February 2017.

16 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM BRIEFS

SOUTHEAST ASIA/SOUTH ASIA AND MIDDLE EAST LEAGUE TABLES

SINGAPORE ANNOUNCED M&A LEGAL RANKINGS INDIA ANNOUNCED M&A LEGAL RANKINGS

No. 1 - Cleary Gottlieb Steen & Hamilton; Sullivan & Cromwell No. 1 - Trilegal

800.0 Value ($MLN) Value ($MLN) Deals: 1 / Market Share: 13 1,284.1 Deals: 2 / Market Share: 29.1 Market Rank Legal Advisor Value ($MLN) Deals Share Rank Legal Advisor Value ($MLN) Deals Market 3 Allen & Gledhill 354.9 3 5.8 Share 4 Nishimura & Asahi 136.0 1 2.2 2* Cravath, Swaine & Moore 1,274.4 1 28.9 5 AZB & Partners 85.0 3 1.4 2* Appleby 1,274.4 1 28.9 6 Rajah & Tann LLP 35.0MERGERS1 & 0.6ACQUISITIONS2* S &RSNAPSHOT Associates 1,274.4 1 28.9 7 J Sagar Associates 7.5 1 LEAGUE0.1 TABLES2* BLC Robert & Associates 1,274.4 1 28.9 I. LEAGUE8 Dorsey TABLE & -Whitney SOUTHEAST LLP ASIA AND MIDDLE EAST5.4 1 0.1 2* Latham & Watkins 1,274.4 1 28.9 SOUTHEAST9 Freshfields ASIA / SOUTH Bruckhaus ASIA Deringer Announced M&A Legal1.0 Rankings1 0.0 MIDDLE7* Borenius EAST Announced Ltd M&A Legal Rankings 653.8 1 14.8 Value No. of Market Value No. of Market 10* Jones Day Legal Advisor 0.0 2 0.0 7* White & Case LegalLLP Advisor 653.8 1 14.8 Rank (US$mln) Deals Share Rank (US$mln) Deals Share 110* TrilegalMorgan Lewis & Bockius 1,284.10.0 2 2 9.50.0 91* AZBKirkland & Partners & Ellis 524.92,215.0 101 11.922.8 2*10* Cravath,Morrison Swaine & Foerster & Moore 1,274.40.0 1 1 9.40.0 101* ShardulWillkie AmarchandFarr & Gallagher Mangaldas & Co 2,215.0165.1 14 3.722.8 2* Appleby 1,274.4 1 9.4 3* Shearman & Sterling LLP 1,469.1 1 15.1 (*tie)2* BasedS&R on RankAssociates Value including Net Debt of announced M&A1,274.4 deals (excluding1 withdrawn9.4 M&A) (*tie) 3*Based onBurstall Rank Value Winger including Zammit Net DebtLLP of announced M&A 1,469.1deals (excluding1 withdrawn15.1 M&A) 2* BLC Robert & Associates 1,274.4 1 9.4 3* Pinsent Masons 1,469.1 1 15.1 2* Latham & Watkins 1,274.4 1 9.4 6 Arnold Bloch Leibler 112.7 1 1.2 SOUTHEAST7* Cleary Gottlieb ASIA/SOUTH Steen & HamiltonASIA ANNOUNCED 800.0M&A LEGAL1 RANKINGS5.9 MIDDLE7 White EAST & Case ANNOUNCEDLLP M&A LEGAL64.9 RANKINGS1 0.7 7* Sullivan & Cromwell 800.0 1 5.9 8 Latham & Watkins 62.5 1 0.6 9* Borenius Ltd 653.8 1 4.8 9 DLA Piper LLP 8.0 1 0.1 9* White & Case LLP 653.8 2 4.8 10* Freshfields Bruckhaus Deringer 0.0 2 0.0 No. 1 - Trilegal 10*No.Ashurst 1 - Kirkland & Ellis; Willkie Farr &0.0 Gallagher1 0.0 - Subtotal with Legal Advisor 4,573.2 45 33.8 0 0 0.0 0 0.0 - Subtotal without Legal Advisor 8,955.9 460 66.2 - Subtotal with Legal Advisor 3,932.2 9 40.4 (*tie) Based1,284.1 on Rank Value incl. Net Debt of announced M&A deals Value(excluding ($MLN) withdrawn M&A) (*tie) 2,215.0Based on Rank Value incl. Net Debt of announced M&A deals Value (excluding ($MLN) withdrawn M&A) II. LEAGUE TABLE - LEGALDeals: 2 / Market Share: 9.5 Deals: 1 / Market Share: 22.8 SINGAPORE Announced M&A Legal Rankings MALAYSIA Announced M&A Legal Rankings Value No. of Market Value No. of Market Legal Advisor Market Legal Advisor Market RankRank Legal Advisor (US$mln)Value ($MLN)DealsDeals ShareShare RankRank Legal Advisor Value(US$mln) ($MLN) DealsDeals ShareShare 1* Cleary Gottlieb Steen & Hamilton 800.0 1 13.0 1 Baker & McKenzie 168.4 2 12.8 1*2* SullivanCravath, & S Cromwellwaine & Moore 1,274.4800.0 1 1 13.09.4 3*2 ShearmanSimpson &Grierson Sterling LLP 1,469.10.8 11 15.10.1 32* AllenAppleby & Gledhill 1,274.4354.9 3 1 5.89.4 3*0 Burstall Winger Zammit LLP 0 1,469.10.0 01 15.10.0 42* NishimuraS&R Associates & Asahi 1,274.4136.0 1 1 2.29.4 3*- PinsentSubtotal Masons with Legal Advisor 1,469.1169.1 31 15.112.9 5 AZB & Partners 85.0 3 1.4 - Subtotal without Legal Advisor 1,142.3 75 87.1 2* BLC Robert & Associates 1,274.4 1 9.4 6 Arnold Bloch Leibler 112.7 1 1.2 6 Rajah & Tann LLP 35.0 1 0.6 0 0 0.0 0 0.0 72* JLatham Sagar Associates& Watkins 1,274.47.5 1 1 0.19.4 7 - WhiteIndustry & Case Total LLP 1,311.464.9 781 0.7100.0 87* DorseyCleary Gottlieb& Whitney Steen LLP & Hamilton 800.05.4 1 1 0.15.9 80 Latham & Watkins 0 62.50.0 01 0.60.0 9 Freshfields Bruckhaus Deringer 1.0 1 0.0 0 (*):tie 0.0 0 0.0 7* Sullivan & Cromwell 800.0 1 5.9 9 DLA Piper LLP 8.0 1 0.1 10* Jones Day 0.0 2 0.0 0 0 0.0 0 0.0 10*9* MorganBorenius Lewis Ltd & Bockius 653.80.0 2 1 0.04.8 10*0 Freshfields Bruckhaus Deringer 0 0.00.0 02 0.00.0 10*9* MorrisonWhite & Case& Foerster LLP 653.80.0 1 2 0.04.8 10* Ashurst 0.0 1 0.0

(*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 SOUTHEAST ASIA/SOUTH ASIA & MIDDLE EAST INVOLVEMENT ANNOUNCED M&A ACTIVITY - QUARTERLY TREND

Series1 Series2

90 78.0 80.1 79.8 79.0 1,400 TransactionsNo. of 80 67.7 1,200 63.7 70 62.8 1,000 60 53.2 54.9 47.2 48.8 46.1 46.2 46.5 800 50 42.5 44.3 42.2 42.1 39.0 600 40 30 25.4 22.4 400 20 200

Rank Value US$ Billion 10 0 1Q 12 3Q 12 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 3Q 15 1Q 16 3Q 16 1Q 17

Notes: 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. Southeast Asia: Singapore; South Asia: India; Middle East. Data accurate from 1 January to 28 February 2017.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 17 an incredible variety of legal, IN-HOUSE Q&A policy and regulatory issues in countries across Asia.

How is being an in-house lawyer at Microsoft NAME BY RAJ GUNASHEKAR different from that of other companies? I have worked in-house only Tell us a bit about your career at Microsoft, but there are JEFF BULLWINKEL so far. several things that I think COMPANY I began practicing law in New make the in-house experience York City back in 1991, when I at Microsoft unique and very joined the Simpson Thacher exciting. & Bartlett. It was, in many The first is that we have MICROSOFT ways, a fantastic experience, a broad remit and work on POSITION exposing me to some of the a wide portfolio of issues. country’s best lawyers and CELA encompasses not just Associate general counsel and director providing a great training Microsoft’s legal department of corporate, external and legal affairs, ground. but also our corporate and Asia Pacific and Japan As much as I enjoyed external affairs functions. law firm practice, I had a So while there are lots of longstanding interest in public people on the team involved service and joined the U.S. in traditional lawyering, Department of Justice (DoJ) others are busy engaging in 1996. I spent four years government leaders on with the Justice Department’s cutting public policy issues, Office of International Affairs, fighting cybercrime, and and it was then that I first even driving the company’s became deeply involved in philanthropic activities. The Asia. At DoJ, my role involved variety is endless and there is facilitating bilateral and never a dull moment. multilateral cooperation in Second, at Microsoft, we criminal matters. I worked are fortunate that our internal closely with justice and business clients really value enforcement officials in Japan, the work that we do. We are Korea, Hong Kong, Singapore viewed as strategic partners to Australia and other markets in the business who do not just the region. identify problems but also The experience I gained find solutions. Microsoft isn’t ultimately led me to Microsoft, a place where our lawyers wait where I joined the company’s around for clients to knock on corporate external and legal the door, seeking approval affairs department (CELA) in from “legal”. We have a seat at 2000, initially for a role in Hong the table at the very beginning Kong. Later postings [were] in of key conversations that will Sydney and Singapore, where shape our future business I’m now based. At the start, strategy and direction. I was focused on tackling Third, it is just an amazing the problem of high-end time to be working as a lawyer counterfeit software – no, we in the technology industry and didn’t solve that problem, but I at Microsoft in particular. Our think we made some progress! customers are embracing Over time, I have been lucky our cloud solutions at a enough to have worked on breathtaking pace. But as they do so, fascinating questions arise regarding the laws and regulations that apply in the

18 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM LITIGATION’S BRAVE NEW context of cloud computing – questions that are often IN-HOUSE Q&A without easy answers. With all WORLD of this variety and complexity, I feel that doing my job at Microsoft is like sitting in that fascinating seminar in law school that everyone was dying to get into, but was always oversubscribed. ‘It’s an amazing I work to create clarity for legal reasons, we need for the team on how they to tell our clients that they What are some of the time to be working can pursue worldwide cannot take a certain path in major recent trends in your as a lawyer in the priorities in their markets; to achieving their goals, but we industry? technology industry’ generate energy within the can often find another path As our customers increasingly organisation; and to ensure that will get them to the same adopt cloud technologies, the we are holding ourselves place. biggest change I have felt over accountable for specific Finally, and it is the past few years is a shift outcomes that are concrete impossible to overstate the in the relationship between How many lawyers does your and measurable. As part of importance of this: in-house our team and the legal team have and how does the this, I try to ensure [that] our lawyers need to model the and business professionals structure work as a whole? team has the resources and highest degree of integrity working for our customers. I’m lucky to work with a tools needed for success, be at all times. We hope and As a major cloud provider fantastic and incredibly diverse it through training in new expect that everyone in offering solutions at every group of individuals across the areas or support from outside our organisation is focused layer of the cloud stack – region, with about 70 people counsel. on fostering a culture of including infrastructure as a sitting in 11 different markets, Ultimately, I hope for compliance, but it is especially service, platform as a service, supporting Microsoft’s sales everyone on the team to feel important that we in-house and software as a service – and marketing organisation empowered to execute our lawyers lead by example. Microsoft sometimes feels in over 30 countries. plans in [ways] that make like an extension of our Our department includes sense in their markets, with What is the best advice you customers’ IT departments. not just lawyers, but also a high degree of creativity have ever received? That fundamentally changes government affairs specialists and a willingness to take My parents taught me from the dynamics of the customer and other professionals. It’s appropriate risks. a very young age to always relationship and creates a becoming increasingly vital believe in myself, and I will strong services mentality for for these different functional In your opinion, what are forever be grateful to them all of us across the company, groups to work closely the key traits that make for a for that. including in legal. together, particularly on successful in-house lawyer? More recently at Our customers and questions related to public I think in order to be truly Microsoft, we have been their in-house and external policies affecting cloud successful in-house, you have talking about the need to counsel have many good – technologies and the terms got to have a passion for the have a strong growth mindset and often difficult – questions and conditions of our contracts law and a passion for the and to embrace a culture of regarding the laws and that need to reflect as well as business you are working in. lifelong learning, which is policies that apply to cloud respect those policies. Everything else flows naturally so important. I have been computing. This is especially from there. a lawyer for over 25 years, true for those in the public How would you describe your People often say that it and while that amount of sector [as well as] financial strategy for the legal team? is also important for in-house experience can be helpful, and healthcare industries. Is We have an excellent leader in lawyers to be “commercial” it can also be a blind spot. the adoption of cloud allowed Microsoft’s president and chief in their orientation. These So when tackling tough in the first place? If so, does legal officer, Brad Smith, and days, that sounds almost issues, I try to check myself data need to be stored on each year he drives a process clichéd, but it really is true. before responding to others’ shore? Whose privacy laws that results in a set of global For me, what that means is ideas, especially if my initial apply? What happens when priorities for the department. having the ability not just to reaction is less than positive. governments ask Microsoft as These are aimed at driving provide sound legal advice There is still so much more to a cloud provider to turn over our business forward and when asked for it, but also learn, and I constantly remind customer data? We have not advancing Microsoft’s core to understand your client’s myself to maintain the right only an opportunity but also mission – to enable every objective and then find a mindset, and to always work a responsibility to offer sound person and every organisation lawful and compliant way hard to listen to and learn answers to these questions. on the planet to achieve more. to achieve that. Sometimes from others.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 19 COVER STORY

ALB INNOVATION LIST 2017

BY RAJ GUNASHEKAR

Today, law firms are increasingly finding that their clients’ expectations change often. It’s no secret that Asia is a tight market filled with an ever-expanding cast of both direct and indirect competitors. The role of technology is expanding, and new approaches to pricing are driving the need for efficiencies and newer solutions. To achieve this and ensure that they remain a leader in a rapidly devloping business world, firms are recognising the necessity of building and sustaining an innovative culture. To do so requires a big psychological leap, and law firms are learning how to “Innovation for law firms means looking diversity in our teams, with some clients cultivate a safe environment that allows at how we can put our client’s need at the placing diversity as a key decision-making staff to put forward new ideas and gives heart of our service. It means embracing criteria in panel reviews.” them room to flourish – or even fail. flexibility, diversity, technology and Law firms that take their commitment Several law firms are using technology adaptation – not only to change the way to innovation seriously should focus on to standardise processes as well as we conduct our service, but also how we using their resources to generate and offer data centres, flexible resourcing or think.” nurture novel ideas. technology products. This is expected to The legal industry is also facing more “We have to learn to put our desire keep rising in 2017. In Asia Pacific, more and more disrupters, such as accountancy for perfection aside to create a high- online products being delivered to clients firms trying to get into the legal market, performance culture and launch products and more flexible working options launched smaller firms that are pursuing more and ideas that may not be as complete as to attract and keep the best talent. commoditised work (at least initially) planned in order to keep moving forward “Innovation starts with a cultural as well as local firms expanding their and stay ahead of the market. And if a new change,” says Stephanie Keen, Singapore horizons. As Keen explains, “We are also project doesn’t go as well as we hoped, we managing partner at Hogan Lovells. seeing more and more clients demand learn from it and try again,” says Keen.

20 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM INTERNATIONAL FIRMS Hogan Lovells Mayer Brown JSM Asia locations: Multiple Asia locations: Multiple COVER STORY Hogan Lovells sees enormous Mayer Brown JSM bucked the AWA Asia activity in Greater China and industry trend towards outsourcing Asia locations: Hong Kong and beyond in the delivery of goods and back office support by merging its DOMESTIC BOUTIQUES AND Beijing services through new and disruptive regional IT service desks to create ALSPs Awa Asia has implemented specific online and mobile technologies. a single global solution, achieving software tools to assist its billing, This includes payment services substantial gains in efficiency, client time entry, matter management and broader developments in the satisfaction and cost reduction. Prior Collyer Law diary and docketing systems. This financial technology or “fintech” to this ambitious remake, Mayer Location: Singapore enables the firm to see how many space, which covers innovations Brown’s three service desks in the Collyer Law has incubated oppositions a client has filed, how such as stored value/e-money, peer- Americas, Asia and Europe served a legal-tech platform called many marks pop up which it can to-peer lending and data analytics. more than 3,500 people across 22 FirstCOUNSEL, designed to prompt its clients to oppose, and Globally, the firm strives offices globally. provide on-demand tailored legal how many oppositions it has won to be at the forefront of privacy Amid growing client support to entrepreneurs, startups or lost. It also allows the firm to and cybersecurity regulation pressure for lower costs, there is a and SMEs. From online support on determine successes and assess as it continues to evolve. significant interest from law firms incorporation to access to a curated whether it is surpassing or stacking Accordingly, Hogan Lovells in outsourcing across all areas of library of commonly used contracts up against the competition. has established a cybersecurity back office support. A common as well as an in-house lawyers on- The firm is now able to measure solutions team primarily focused misbelief about IT outsourcing demand, the platform provides its growth areas and highest profit on risk management, incident is that it delivers efficiencies and early-stage businesses with a centres as well as identify trouble preparedness, regulatory improvements that cannot be one-stop solution for all their legal spots, wastage of resources and enforcement, litigation, crisis achieved internally. support needs. weakest links. Through specific management assistance, and When the firm’s global IT The firm seeks to make the software tools, AWA Asia can breach response and investigations service manager and director quality of its work environment structure billing arrangements to counsel. weighed the options, they better for talented candidates who meet clients’ needs. Hogan Lovells has also discovered that diverse challenges may not have such flexibility in Big launched Business and Social around language and culture Law. For example, one third of its Enterprise, a programme that were very difficult to achieve with lawyers can work virtually anytime Berwin Leighton Paisner teaches young lawyers about the outsourcing. They built the business – they can use a “hot desk” when Asia locations: Multiple foundations of business, financial case for an internal global service, they’re in office for meetings and Berwin Leighton Paisner’s (BLP) modelling, client management and which was fully supported by the so on, but they can also work culture of collaboration and cross- social impact within a commercial firm’s leadership. from home whenever that is the border work is a common thread environment. more productive option. “We were running through most of its practice inspired by consulting firms where areas. The firm has implemented Pinsent Masons the client-facing consultants often a new case management and Kobre & Kim Asia locations: Multiple spend much time outside the office workflow platform equipped with Asia locations: Hong Kong and In Asia, the firm’s focus is sharper, and at client locations, and have enhanced artificial intelligence (AI) Seoul building its business around only hot desks for when they return and data analytic capabilities. Kobre & Kim has invested in the energy and infrastructure to the office,” it says. Its arbitration team is one building infrastructure around sectors. A compelling example Collyer Law also actively practice area that offers 24-hour matter management, budgets, of that strategy in action has hires and engages with candidates assistance to its clients, with group knowledge sharing and training been the development of the who wish to work on a part-time members located in Asia, the Middle for its teams. For example, it has Pinsent Masons’ “Infrastructure basis, especially working moms East and London. implemented an “aggressive, trial- Academy”, in partnership with a and millennials seeking work-life Another innovative way BLP ready approach” where it attacks major infrastructure client in South balance while remaining in legal serves its asset finance clients is each engagement using a vigorous, Korea. practice. by using a remotely-based legal trial-focused strategy designed The firm has developed services delivery team. Stationed in to get to the heart of the matter TermFrame, an in-house matter Manchester, UK, this group supports as quickly as possible. After each management system that Lawyers On Demand BLP fee earners in delivering aspects case is concluded, the firm’s case incorporates machine learning into Asia locations: Multiple of client work that can be process- and knowledge management team the legal process. TermFrame offers From helping a law firm to develop engineered and follow a structured meet for a post-mortem discussion a straightforward way to model its own flexible legal service to “checklist” approach. for a follow-up. legal scenarios and automatically helping a lawyer work remotely The firm uses a document The firm supports its lawyers’ pulls in discrete parts of the firm’s with a top fashion brand based in management system and career goals. Lawyers are ensured legal knowledge, thus providing Los Angeles, LOD is focused on e-discovery software called Ringtail the option to discuss their relevant information and prompts providing each client a tailored to carry out document reviews. It professional ambitions with partners to lawyers. solution. has implemented the One Asia through a mentor programme and To date, this technology A major practice of LOD is the approach, which sees partners directly with firm’s management. Its has been deployed in over 7,000 personalised career development jointly planning, managing and training programmes are focused matters, including property process. The outcome of this adjusting budgets throughout on providing lawyers with the tools acquisitions, leases, licences and dispels the myth that being a the year. This strategy has been needed to develop specific legal disposals, dispute resolution flexible lawyer or consultant instrumental in allowing it to be skills as well as how to advance processes, contract risk review stops career growth. LOD believes more considerate and organised in at the firm, including career frameworks, complex due diligence career development is individual. its spending. progression. and contract review. A business plan process is in place

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 21 DOMESTIC FIRMS Drew & Napier firm. The sector-oriented structure COVER STORY Location: Singapore placed the firm in a better position to Drew & Napier’s organisation advise on the most important legal Atsumi & Sakai structure is unique in that it is affairs and business opportunities for new lawyers and consultants, Location: Tokyo organised in teams comprising of clients in the areas of internet, providing them with an individual With the rapid advance and junior directors, associates, and healthcare and compliance practice. and targeted approach to facilitate development of technologies such as secretaries. All the teams are led by Coinciding with the launch of their professional development. AI internet of things (IoT), big data, senior directors who are recognised the practice areas restructure, KWM The firm is constantly assessing analytics and communications, and leaders in their area of practice. also rolled out a plan for improving the Asian markets and remain the expansion of their application Junior lawyers are expected to rise legal service quality as well as innovative and responsive to across all business fields, legislators to the challenges of a top-tier legal boosting its client relationship them. frequently have trouble keeping up practice, but they aren’t expected management programme and For example, LOD launched with the pace of change. to do this alone. Within the teams, cross-selling. This served to its In-House Legal Women of Atsumi & Sakai says it keep senior lawyers give consistent reinforce the change from a project- Influence Program in Asia last itself abreast of these changes and personal attention and hands- based to a client-centric mindset year. This is a forum for women in assists clients with the novel legal on training to junior attorneys. and work approach. senior in-house legal roles to share issues arising from them through Instead of hiring laterally, the firm The restructure also brought ideas, issues and solutions to the its Innovation Business Support has a tradition of developing and on a massive reshuffling of its challenges they face in their line (IBS) team. Recently, the IBS team promoting talent from within. Drew operational systems including IT, of work. has been transformed into a new & Napier’s five senior counsels are HR, marketing, digital solution and The firm uses social media Innovation Practice Group, which homegrown talents. ERP. Under the same principle, and forums to recruit and connect combines lawyers experienced in The firm has a “ministry of KWM also successfully restructured with lawyers before the candidates the fields of law relevant to this fun” committee organises enjoyable its business support system to be decide to apply for a post. LOD swiftly changing world. events, allowing staff to take a client-focused as it was designed has built relationships with the HR The firm also provides matching break, let their hair down and get around the practice groups’ needs, teams of various law firms, and they services, assisting a leading to know one another better. The while the client management refer talented lawyers who may be company or a venture capital firm to group puts together cocktail events programmes have become sector- looking for an alternative way to find startups, and supports industry- throughout the year, a trivia night oriented . practice law to LOD. government-academia partnerships. for the charities that Drew & Napier supports, and a crazy call party to celebrate trainees. Rajah & Tann MG/Chambers Cyril Amarchand Mangaldas Locations: Multiple Location: Singapore Locations: Mumbai, Ahmedabad, Rajah & Tann is the first of the In March 2016, MG/Chambers Bangalore, Chennai and Hammurabi & Solomon Singapore mega-firms to set up a launched a document assembly Hyderabad in India Locations: New Delhi, Mumbai, dedicated practice group (business system called VanillaLaw and Cyril Amarchand Mangaldas Bangalore, Patna and Ranchi in fundamentals) for startups and deployed it to clients. Unlike a (CAM), India’s largest law firm India SMEs. Most SMEs lack specialised template/form filling system, by headcount, wants to be at the When it comes to incorporating skills and knowledge to negotiate VanillaLaw has guide notes to allow forefront of the technological innovative approaches in running issues involving compliance, users, even those who have no legal revolution in the fast-growing Indian a law firm, Hammurabi & Solomon regulations and corporate training, to select the clauses they legal market by being the first user ensures that its services offer value documentation, while they face want. While there are other non- of machine learning software Kira for money. The firm discusses competing demands in managing, template systems in the market, Systems as well as by bringing more its approach and budget for the marketing and growing their these systems are used in the back change through innovation. transaction prior to commencing businesses at the same time. The end by lawyers and are not suitable It recently signed an agreement work. This encourages absolute business fundamentals group is for use by non-lawyers. with Canada-based provider Kira transparency, as the client is made aimed at countering these pain By deploying VanillaLaw Systems to enhance its delivery aware of the strategy and costing points by offering SMEs a spectrum directly to clients, MG/Chambers model and boost the efficiency, beforehand. It also provides detailed of growth-stage appropriate has made itself available virtually, accuracy and pace of certain legal bills to clients, reflecting the hours affordable solutions. and is no longer just a brick-and- services. and work done by lawyers on the The firm has also established mortar law firm. This gives its clients Kira is software that AI to matter or transaction. R&T Asia Resources, a flexible to have access to a virtual in-house identify, analyse and extract Hammurabi & Solomon insourcing service designed to legal department and external clauses and other information from maintains an intranet system to meet clients’ increasing need for lawyers combined. contracts and other types of legal facilitate knowledge sharing at the experienced contract lawyers to To support VanillaLaw, the firm documents. CAM the first law firm firm. It also recently introduced an support in-house counsel on short- had to digitise all its work flows and in the country to deploy such a IT-driven system to manage its client term contracts and project-specific processes. Its lawyers now work in technology. relationships and matter mapping. work. a strictly digital environment, which As a full-service law firm, As work from clients corresponds to increased cyber CAM does numerous deals and has grows in complexity and spans security issues. Therefore, the firm previously innovated in the area of King & Wood Mallesons multiple jurisdictions, R&T has has changed some of the hardware M&A diligence by establishing of its Locations: Multiple implemented group-blended rates and work flows to deal with these Transaction Support Group. Since its restructuring, King & Wood with established working protocols, issues. As an early user of artificial Mallesons (KWM) has discovered ensuring clients have a unified, Founded by Mark Goh, MG/ intelligence, the firm aims to move more opportunities for larger simplified and more enriching Chambers aims to “clear the fog of up the learning curve and be ready transactions that require cross- experience through a one-stop shop law”. for further technological changes. practice legal services within one service.

22 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM BUSINESSBUSINESSBUSINESS DEVELOPMENTBUSINESSDEVELOPMENTBUSINESSDEVELOPMENTBUSINESS DEVELOPMENTDEVELOPMENTDEVELOPMENT PREMIERPREMIERPREMIER PREMIERAPREMIERA REVOLUTIONPREMIERA REVOLUTION REVOLUTION IN IN IN WINNINGAWINNINGA REVOLUTIONWINNINGA REVOLUTION REVOLUTION NEW NEW NEW BUSINESS IN BUSINESS IN BUSINESS IN WINNINGAWINNINGA REVOLUTIONWINNINGA REVOLUTION REVOLUTION NEW NEW NEW BUSINESS IN BUSINESS IN BUSINESS IN WINNINGWINNINGWINNING NEW NEW NEW BUSINESS BUSINESS BUSINESS

Let’sLet’s faceLet’s face facts. face facts. Technology facts. Technology Technology is essential is essential is essential for stayingfor stayingfor staying competitive competitive competitive in the in themarketplace. in themarketplace. marketplace. But But does But does your does your CRM your CRM system CRM system system Let’sdeliverLet’sdeliver face Let’sdelivereverything face facts. everything face facts. everything Technology facts. that Technology that Technologyyou that you would is essentialyou would is essential hopewould is essentialhope forand hope stayingforand expect? stayingforand expect? staying competitiveexpect? The competitive The reality competitive The reality in isreality thethat in is thethatmarketplace. intheis thethatmarketplace. themajority marketplace. themajority majority Butof standard Butof does standard Butof does yourstandard does CRM your CRM CRM your systemsCRM CRM system systemsCRM system systems fail system failin failin in Let’sdeliverexpectationsLet’sdeliverexpectations face Let’sdeliverexpectationseverything face facts. everything face infacts. everything theirTechnology infacts. that theirTechnology in first that theirTechnologyyou first that year.you would isfirst year.essentialyou wouldInis year. essential hope wouldaddition,Inis essentialhope addition,In forand hopeaddition, stayingforand onexpect? stayingforandaverage, onexpect? staying average, competitiveonexpect? The average,competitive The60% reality competitive The60% realityof in 60%is contactsreality of thethat in is contacts of thethatmarketplace. intheiscontacts thethatmarketplace.never themajority marketplace.never themajority makenever majority Butofmake it standard intoButof makedoes it standard intoButof does ita yourstandard intoCRM does aCRM your CRM CRM aCRMdatabase. your CRMsystemsCRM CRMdatabase. system systemsCRM database. system systems fail system failin failin in It’sdeliverexpectations It’sdeliverexpectationstime It’sdeliverexpectationstimeeverything for timeeverything afor in realityeverything theirafor in reality that theira in firstrealitycheck. that theiryou firstcheck. that year.you would first check.Business year.you wouldIn Business year. hope wouldaddition,In Business hopeaddition,DevelopmentIn and hopeaddition,Development and onexpect? Development andaverage, onexpect? average, onexpect? PremierThe average, PremierThe60% reality PremierThe60% realityisof a 60% iscontactsreality isCRMof thata iscontacts isCRMof thata solution theiscontacts CRM that never solution themajority never solution themajority coupled makenever majority coupled ofmake it coupledstandard into ofmakewith it standard into of with itaenterprise standard into CRM with aCRMenterprise CRM aCRMdatabase.enterprise CRMsystems CRMdatabase.relationship systems database.relationship systems failrelationship failin failin in It’smanagementexpectations It’smanagementexpectationstime It’smanagementexpectationstime for time afor in realitytechnology theirafor in realitytechnology theira in firstrealitytechnologycheck. their firstcheck. andyear. first check.Business and year.enhanced In Business and year.enhanced addition,In Business enhanced addition,DevelopmentIn with addition,Development on with Development marketing average,on with marketing average,on Premier marketingaverage, Premier60% automation, Premier60% automation,isof a 60% contactsautomation, isCRMof a contacts isCRMof experiencea solutioncontacts CRM experienceneversolution experienceneversolution coupled makenever management coupledmake itmanagement coupled into makewith itmanagement into with itaenterprise into CRM with atools,enterprise CRM atools,database.enterprise CRM company tools,database.relationship company database.relationship company relationship profiles profiles profiles It’smanagementpowered It’smanagementpoweredtime It’smanagementpoweredtime forby time Thomson aforby realitytechnology Thomson aforby realitytechnology Thomsona realitytechnologycheck. Reuters, check. Reuters,and check.Business Reuters,and enhanced and Business and enhanced and competitiveBusiness enhanced Developmentand competitive with Development competitive with Development marketing intelligencewith marketing intelligence Premier marketing intelligence Premier automation, Premier automation,madeis a automation,made isCRM apossible made isCRM experienceasolutionpossible CRM experiencesolutionpossible through experiencesolution coupledthrough management coupledthrough integrationmanagement coupled with integrationmanagement with integration enterprise with tools,enterprisewith tools,enterprisewith Monitor company tools,relationshipwith Monitor company relationship Monitor company Suite.relationship profiles Suite. profiles Suite. profiles managementpoweredBusinessmanagementpoweredBusinessmanagementpoweredBusiness byDevelopment Thomson byDevelopment technology Thomson byDevelopment technology Thomson technology Reuters, Premier Reuters,and Premier Reuters,and enhanced Premierand changes and enhanced and competitivechanges enhanced and competitivechanges withthe competitive with theway marketing intelligencewith theway marketingyou intelligence way marketingyou play intelligence you automation,play and automation,madeplay and win automation,made and win possible themade experiencewin possible thegame. experience possible thegame. through experience game. through management through integration management integrationmanagement integration tools,with tools,with Monitor company tools,with Monitor company Monitor company Suite. profiles Suite. profiles Suite. profiles poweredBusinesspoweredBusinesspoweredBusiness byDevelopment Thomson byDevelopment Thomson byDevelopment Thomson Reuters, Premier Reuters, Premier Reuters, Premierand changes and competitivechanges and competitivechanges the competitive theway intelligence theway you intelligence way you play intelligence you play and madeplay and win made and win possible themade win possible thegame. possible thegame. through game. through through integration integration integration with with Monitor with Monitor Monitor Suite. Suite. Suite. WANTWANT WANTTO TODISCOVER TODISCOVER DISCOVER A BETTER A BETTER A BETTER WAY? WAY? READWAY? READ MORE…READ MORE… MORE… BusinessBusinessBusiness Development Development Development Premier Premier Premier changes changes changes the theway theway you way you play you play and play and win and win the win thegame. thegame. game. WANTWANT WANTTO TODISCOVER TODISCOVER DISCOVER A BETTER A BETTER A BETTER WAY? WAY? READWAY? READ MORE…READ MORE… MORE… WANTWANT WANTTO TODISCOVER TODISCOVER DISCOVER A BETTER A BETTER A BETTER WAY? WAY? READWAY? READ MORE…READ MORE… MORE…

For more information on Business Development Premier and how it can work for you, contact Amantha Chia at [email protected] or call +65 6870 3917 today. MP CONVERSATION

The travails of law firms in Singapore Of course, this means that it is critical have been mentioned in these pages for law firms in Singapore to react quickly previously, but they still bear repeating. and decisively if they don’t want to be Competition is intensifying: An increasing overwhelmed by these fundamental, number of international outfits are setting permanent changes. But the route to up shop in the city-state, smaller local take for individual firms might depend firms are mushrooming to take their own on a variety of factors – their specific slice of the pie, and even accounting strategy, their place in the industry, and firms are getting in on the action. Fee their strengths and weaknesses. pressures grow more excruciating – the For Tan Chong Huat, managing BY RANAJIT DAM billable-hour model is dying, and fixed partner of RHTLaw Taylor Wessing, fees and retainers are taking its place. law firms need to go beyond just being Much of the low-end work is now under a law firm and instead offer clients a threat from a combination of bulked-up comprehensive suite of solutions for all legal teams and rising legal tech startups. their business needs. “Lawyers must And these factors don’t even take into create value for their clients,” he says. account potential threats from emerging “Firms that strengthen their international CITY AT THE technologies like artificial intelligence (AI). expertise and are able to provide one In short, the legal industry in Singapore, stop legal offerings across ASEAN and much like the legal industry in other parts eventually globally are better placed of the world, is facing disruptions like to tap opportunities that globalisation CROSSROADS never before. brings.” Law firms in Singapore are now facing a fairly clear choice: to react slowly – if at all – to the permanent, fundamental changes happening to the industry, or to move quickly and establish themselves as pioneers in the legal sector of the future. Two law firm leaders describe the path ahead.

24 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM MP CONVERSATION

Additionally, he says that firms need overcome. As such, “international firms in review the case that regional clients will to embrace technology to move their Singapore have to focus on regional work, turn to them for higher-end cross-border practice to the next level. “Disruptive to find markets big enough to support the work, and consequently, what role they technology is here to stay, and the only growing number of international firms can fill in this more sophisticated, diverse way to overcome disruption is to embrace and lawyers in Singapore,” explains Lim. and competitive market,” he says. “This change quickly,” notes Tan. “Algorithms, Among the challenges for has led to some international firms to machine learning, and the use of big data international firms in Singapore, notes localise and regonalise their headcount and artificial intelligence will change Lim, are the increasing sophistication of in Singapore. They are hiring regional how firms render professional services. national firms in some key jurisdictions lawyers with international experience to Innovation is key to our survival in this such as India and China, and, for the meet the new challenges and demands of competitive market.” smaller global firms, the growth of the market.” From an international law firm’s regional office networks of larger perspective, it is vital to look beyond international firms. “Added to this is the GOVERNMENT SUPPORT the city-state’s shores, says Steven Lim, rise in regional firms, such as Rajah & Tann A couple of things that legal managing partner of Nabarro’s local office. and ZICOlaw, which position themselves professionals in Singapore can agree on “Singpore has a relatively small domestic as alternatives for regional legal work.” is the government’s continued support legal market,” he says. Save for certain Lim feels that the role for Singapore for creating the requisite infrastructure for exceptions, the practice of Singapore law is as a regional legal hub is changing the legal sector as well as its push for the restricted to Singapore law firms, and this as result of these developments. adoption of technology among law firms. a hurdle that international firms have to “International firms in Singapore have to “The Singapore government is one of the few governments globally to focus on the legal sector as a strategic growth sector,” says Lim. “It sees a role for the legal sector in the growth of Singapore’s economy, as part of the regionalisation and internationalisation of the professional services industry to export these services to the region.” As part of that initiative, the government has backed the growth of international law firms in Singapore, notes Lim. “It has actively looked to integrate international firms into a wider legal, professional and financial services ecosystem within the city state,” he adds. “One area the government has pushed for

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 25 MP CONVERSATION

“Disruptive technology is here to stay, and the only way and global reach, can lead, but only for the moment. “Singapore firms and other to overcome disruption is to embrace change quickly. national firms in the region are catching Algorithms, machine learning, and the use of big data up fast,” he says. “One of the features of and artificial intelligence will change how firms render the revolution in information technology in the last 20 years has been the lowering of professional services. Innovation is key to our survival in this barriers to entry to the latest technology. competitive market.” — Tan Chong Huat, RHTLaw Taylor Wessing Users are able to leapfrog to the latest technology, cutting through the cycle of developments.”

SINGAPORE’S FUTURE successfully is the growth of Singapore as law firms adopting technology that can According to Tan of RHTLaw, as law firms an international arbitration and dispute help streamline work processes or even invest more in innovative technologies, resolution centre. International law firms work with other non-legal professionals to the industry is likely to witness the have, naturally, benefited from this. The create new business offerings to clients.” proliferation of new technology government has encouraged international But it is the technology aspect that harnessing big data analytics and AI to law firms to grow this expertise in might just be the most critical part of the undertake previously time-consuming Singapore and have given significant whole equation. “The gulf between the and manually laborious work such as roles to international arbitration lawyers smaller and traditional law firms and basic legal research, document review in Singapore.” the bigger legal players may threaten to and construction. “Some firms already Tan says that recent changes in the widen significantly over time, especially use virtual secretaries and innovative legal landscape show that the Singapore if there is a lack of knowledge and solutions to ensure that they can share government is keen to see law firms evolve resources to facilitate the harnessing support services across several offices in with the times. “This is a move in the right of baseline legal technologies that the region,” he says. direction,” he notes. “The establishment can strengthen the practice of law,” He points out that such technology of the Legal Services Regulatory Authority observes Tan. “It is heartening to see the has made it possible for law firms to adopt in November 2015 was designed to Singapore government provisioning for a multi-nodal network approach to a truly modernise the regulatory regime of grants to encourage smaller law firms to regional practice. “This will facilitate Singapore’s legal industry. Changes to the adopt technology to grow their practice, consolidation within the industry through regulatory regime now allow law firms to especially with the growing potential for mergers and alliances across the region. attract and hire foreign lawyers and non- more legal services going virtual.” Singapore law firms will have to decide legal talent who can help to strengthen Recently, the Singapore government if they wish to grow by going regional or their firm’s legal practice beyond the announced a scheme called Tech Start for international, or by becoming ‘boutique,’ traditional areas of legal practice. These Law, a S$2.8 million grant programme focusing exclusively on specific practice will also allow law firms to expand their designed to help small and medium- areas.” practice into the region.” sized law firms boost productivity through He also sees the government further In the disputes space, Tan notes technology. “This is a step in the right liberalising the legal market in the coming the move towards third-party funding. direction and reflects the government’s years. “Greater liberalisation will increase “The Singapore government’s push to seriousness in assisting law firm,” adds pressure and competition in the legal transform Singapore into an international Tan. sector, but it will also result in an overall centre for dispute resolution, as well as Lim of Nabarro concurs. “Technology increase in the quality and calibre of our the move to allow third-party funding for and information technology in particular, local firms as we step up to compete with arbitration, are changes that augur well have transformed the world in the last 30 the established international law firms,” for the dispute resolution sector,” he says.” years. The legal sector is no exception,” he says Tan. Additionally, a new five-year blueprint says. “Changes in the way information is Meanwhile, Lim of Nabarro expects to was introduced at the start of the year to collated and accessed have transformed, see more convergence between Singapore encourage law firms to adopt the latest for example, the way legal research is firms and international firms. “The line tools and software to improve operations, done. There is no doubt that a law firm between the two will continue to blur,” he says Tan. The Singapore Academy of Law that wants to practice at the cutting edge says. “We have seen the development of also unveiled a roadmap for the incubation needs to adopt and exploit cutting-edge ‘hybrid’ firms like Morgan Lewis Stamford, a legal tech scene. “Taken together, these legal technology.” Eversheds Harry Elias and Dentons Rodyk moves are highly positive for the legal According to Lim, this is an area – which are both international and local. industry,” he says. We can expect to see where international firms, given their size The joint law venture and formal law

26 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM MP CONVERSATION alliance schemes have led to a gradual “Smaller international firms have to be nimble and find localisation of international law firms in Singapore.” their niche. They need to detect and exploit trends in At the other end, Singapore the demand for international legal services in the region law firms are also regionalising and and find a niche for themselves amongst the larger internationalising to take on international firms and to fulfill their ambitions to international firms and big national firms for higher-value export legal services to the region beyond cross-border work.” — Steven Lim, Nabarro Singapore’s shores, says Lim. “We will also see an increased adoption of Singapore law as a neutral law for international transactions and dispute resolution. This will add to the impetus for convergence,” “The smaller international firms have succeed in this evolving market. “It boils he adds. to be nimble and find their niche. They down to the law firm’s ability to support But what are the keys to success in need to detect and exploit trends in the its clients well through geography and this market going forward? For larger demand for international legal services in intelligent innovative legal solutions,” he international firms, it is scale and size, the region and find a niche for themselves says. “Given the increasingly cross-border says Lim. Singapore and other regional amongst the larger international firms nature of many commercial transactions, firms are expected to grow into very and big national firms for higher-value having a solid global and regional network large firms in their own right, and with cross-border work.” to support the clients is important. A law their regional footprint, “the larger Meanwhile for Tan, technology firm lacking in international presence will international firms have to grow in scale and geographical reach are two critical find itself challenged when it pitches for and size in the region to compete,” he says. factors that law firms must leverage on to international deals and tenders.”

The best features and analysis about Asia’s legal industry. Delivered to your inbox weekly. Introducing ALB INSIGHTS ALB Insights is a weekly, ad-free premium email newsletter that provides analysis and opinions related to the important news and trends in Asia’s fast-growing legal markets. With a mix of features, Q&As with key figures, and profiles of some of the hottest firms and service providers, this is a must-read for anyone interested in gaining a deeper understanding of the region’s legal industry.

To subscribe, email Taranjit Kaur at [email protected].

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 27 M&A

People queue outside of a newly opened duty free shop in Shanghai, China, August 8, 2016. China Daily/via REUTERS/File photo

Inbound China M&A takes flight on the back of consumer promise LOOKING INWARDS BY ELZIO BARRETO OF REUTERS Overseas acquisitions by Chinese Belgian investment firm Verlinvest is food and beverage products, healthcare, buyers are cooling after two record years ahead of the trend. education, cinema or entertainment, as Beijing reins in capital outflows, but It set up a $300 million venture or anything linked to kind of cultural deals into China are on the rise, and new last year with Chinese state-owned production and content,” he says. rules will make it easier for foreign buyers conglomerate China Resources and has Verlinvest’s joint venture in December to tap China’s giant consumer potential. already deployed more than half of the bought an undisclosed stake in Oatly, a Inbound M&A deals have already funds. Swedish maker of dairy-free products, reached $7.1 billion so far in 2017, almost Verlinvest, which manages funds for and plans to expand it into China, and in double the amount in the same period last the founding families of Anheuser-Busch November it bought a majority stake in year and are well on track to beat the 2016 InBev, is investing in minority and majority Red Sun Enterprise, which owns senior total of $46 billion, while outbound deals stakes in leading western brands so it care homes in Shanghai and Nanjing. tumbled more than 40 percent to $8.4 can push them through China Resources’ billion, Thomson Reuters data showed. distribution channels in China, says LOOSER APPROVALS REGIME Deals in retail and consumer staples Nicholas Cator, who is responsible for the The leadership in Beijing has long been accounted for nearly half those early Asia business. trying to rebalance the economy away transactions, far outpacing real estate and “We’re going to be focusing on those from infrastructure, heavy industry financial deals, which usually dominate high-growth sectors that are based on and export-led growth and towards inbound M&A. consumer trends, like health-related domestic consumption, so in theory such

28 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM investment should be welcome, but in Development Financial Holding, is also practice foreign capital has fallen foul of seizing the opportunities. M&A barriers to entry. Last August it invested 200 million That appears to be changing. After a yuan ($29.2 million) for a stake in outdoor trial in a few of its free-trade zones, China sports retailer Tutwo (Xiamen) Outdoor and CEO of CDIB. “Consumption is in October expanded to the entire country Co Ltd, betting on a jump in demand for still relatively robust, but we’re not just a new liberalization program. hiking, skiing and camping gear in China. seeking average growth, we’re seeking Apart from a “negative list” of “Clearly there’s going to be more hyper growth and that you can see in new industries deemed too sensitive, foreign of a focus on domestic growth and categories.” investments no longer need to go through consumption is one of the themes,” The biggest fly in the ointment, a cumbersome approval system, and says Lionel de Saint-Exupery, president according to David Cogman, a principal there has even been some loosening in focusing on China at consulting firm the off-limits list. McKinsey & Co, is the lofty valuations for “The direction China is going is that Chinese assets. for most sectors, provided it’s not in the Consumption and services companies so-called negative list, where there would “The direction China is listed in Shenzhen and Shanghai trade at be additional scrutiny, the process for about 30 times their earnings, compared corporate establishment and changes going is that for most with a multiple of 17 for similar companies including share transfers should be sectors, provided it’s not in trading in Hong Kong and about 20 for simpler,” says Tracy Wut, M&A partner at the so-called negative list... U.S.-listed companies, Thomson Reuters Baker McKenzie in Hong Kong. data shows. “From the recently amended negative the process for corporate “At the end of the day, particularly list, there are further relaxations in certain establishment and changes if you’re a fund looking across multiple sectors to which the government is trying including share transfers markets, your investment committees still to encourage foreign investments.” have to think where to put the capital and CDIB Capital International Corp, should be simpler.” that’s hard to do with the current numbers part of Taiwanese financial group China — Tracy Wut, Baker McKenzie you see in China,” he says.

Guido Hidayanto Partners your trusted legal advisor www.lawghp.com

We listen to you, so we can GHP draws from in-depth understanding of local law precisely craft personalized and commercial practice to provide hands-on advice legal solutions that speaks the language of your business

Equity Tower, Level 49, Sudirman Central Business District Jl. Jend. Sudirman Kav.52-53 Jakarta 12190, Indonesia | +6221 2965 1258 | [email protected]

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 29 Chinese firms.” These included CHINA INVESTMENT SPOTLIGHT SERIES a preliminary agreement by China’s Baiyin Nonferrous Group to consider investing up to $700 million in a stainless steel plant in the Philippines owned by Global Ferronickel Holdings, a memorandum of understanding for a $2.5 billion project signed by China Railway Engineering Corp. and MVP Global Infrastructure Group, and China Harbour Engineering’s investment in a $780 million coastline and port project in Davao City, Duterte’s hometown.

INTEREST, BUT CHALLENGES According to Gulapa, his firm has seen an uptick in inquiries from Chinese and China-based To get an idea of how THE PHILIPPINES clients, specifically in trading and much Chinese investment in the infrastructure. “In the infrastructure Philippines has rocketed of late, sector, Chinese investment is simply look at the numbers. In increasing in power, particularly 2015, as ties between the two renewable energy,” he notes. “We countries deteriorated over issues are currently assisting a leading relating to the South China Sea, Chinese contractor in a transaction PRC investment in the Philippines TIME TO BUILD involving solar power. At the same was a mere $32 million, a drop in time, we are assisting several the overall bucket of $130 billion In the first of ALB’s series on Chinese Chinese companies in setting that China doled out globally. In investment into Southeast Asian up presence in the Philippines October last year, newly elected to distribute their products and Philippine President Rodrigo countries, we look at the Philippines, services to the Philippine market.” Duterte traveled to Beijing with a which recently signed a massive That said, the path of Chinese high-level business delegation in investment and financing package investors will not be entirely one of the more talked-about state smooth. “Challenges involve visits by a Filipino leader in recent with China, with much of that money foreign ownership caps and times. The outcome? Investment going into building infrastructure. minimum paid-up capitalisation and financing agreements between requirements,” says Gulapa. that totaled $24 billion, of which “Philippine law, particularly the $15 billion are investment projects BY RANAJIT DAM second major trading partner with Foreign Investments Negative List, and $9 billion credit facilities. $17 billion value in total trade. includes several sectors that are Philippine Trade Secretary While Philippines exports to China subject to these limitations. In fact, Ramon Lopez was quoted in were $6 billion in 2015, there was depending on the activity involved, local media as saying that the still room to grow, as China’s total both infrastructure and trading are deals spanned across industries imports totaled around $2 trillion subject to these limitations.” such as manufacturing, that year. Gulapa says that in agribusiness, trade, finance, hotels, Among the deals signed infrastructure, the operation of telecommunications, tourism, by Duterte, the overwhelming a public utility is subject to a transportation and infrastructure. preference was that for 40 percent foreign ownership In total, the investment agreements infrastructure. “Infrastructure cap. “This means any foreigner would translate to at least two gets a fairly large share,” says Aris intending to invest in this million jobs generated locally over Gulapa, managing partner of the sector may have to structure its the next five years. These served Manila-based Gulapa Law Office investment by way of provision to bring together two countries (G-Law). “Preliminary agreements of technical services if it wants to that had been growing closer in railways, ports, and energy worth operate a 100 percent subsidiary,” economically over the years – at $11.2 billion have been reported to he says. Construction, which is present, China is the Philippines’ be signed between Philippine and closely related to infrastructure,

30 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM has a number of stringent licensing WAIT AND WATCH requirements for foreign investors But it’s not just the specific laws and CHINA INVESTMENT SPOTLIGHT SERIES as well. regulations that Chinese investors Meanwhile, in the trading must consider. Gulapa notes that arena, Philippine law defines a due to the change in administration infrastructure projects may be put “domestic market enterprise” in mid-2016, the tender of several to halt until this proposed law is as one that produces goods for infrastructure projects that his passed. Thus, Chinese investors sale, or renders services to the firm had been handling have been in infrastructure may have to wait domestic market entirely, or if temporarily suspended. until the third quarter of 2017.” exporting a portion of its output, In addition, the Philippine Players in the infrastructure fails to consistently export at Executive Department has sector also do not seem to least 60 percent thereof. Under sought the aid of the Legislative agree with the parameters and the Foreign Investments Negative Department to promulgate a law specifications of infrastructure List, foreign ownership of domestic that would give the administration projects which are in the pipeline market enterprises with paid-in “special powers” to solve the for bidding. “Several of them are equity capital of less than the perennial traffic problem in submitting unsolicited project peso equivalent of $200,000 is Metro Manila and other urban proposals to different government limited to 40 percent. “Conversely, areas. “The special powers will agencies instead of waiting for the a domestic market enterprise may be wielded for three years by the Philippine government to solicit be wholly owned by foreigners if its Secretary of Transportation,” bidders for its own projects,” he paid-in equity capital is at least the he says. “The proposed law is says. “If Chinese investors are in a peso equivalent of $200,000,” says still pending before the House hurry to be awarded infrastructure Gulapa. “Thus, a domestic market Committee on Appropriations and $161 bln: projects, they may have to partner enterprise is considered operating realistically might only be passed 161Amount of with local players to submit in a partially nationalised industry by the second quarter of 2017. This total outbound unsolicited proposals to the Chinese if its paid-in capital is less than the means that there is a possibility investment in government. This may be the trend peso equivalent of $200,000.” that road transportation and rail 2016 for the next two years.”

12

Manila Manhattan 12-A, 12/F Marco Polo Ortigas 12th Floor, 1115 Broadway Sapphire Road, Ortigas Center (25th and Broadway) Pasig City 1605 New York, NY 10010 +632.960.2845 to 47 +1.917.530.0400 [email protected] [email protected] Gulapa Law (“G-Law”), ALB’s http://gulapalaw.com http://ny.gulapalaw.com 2016 Philippine Boutique Law Firm of the Year and nominee Recent Recognitions: for Philippine Law Firm of the

Year, was established in ¥ Chambers and Partners (Asia and Global), Leading September 2015. Prior to Individual, Aris Gulapa (2015, 2016) setting up G-Law, Aris Gulapa, ¥ ALB Philippine Law Awards, nominated for 5 awards the firm’s Managing Owner, (2016) worked as a legal advisor in ¥ ALB Philippine Law Awards, Boutique Law Firm of Manila, Singapore, Vietnam, Tokyo and New York over 12 the Year (2016) years. He has been teaching ¥ ALB Southeast Asia Law Awards, nominated for ASEAN trade law in Ateneo de Asset & Corporate Finance Deal of the Year and Manila University School of Boutique Law Firm of the Year (2016) Law since 2011. ¥ Asialaw Profiles, Recommended in 5 practice areas, including Construction & Real Estate and Despite having been recently established, G-Law has already Corporate/M&A (2017) been engaged for and is currently working on important ¥ Legal500, Tier 1 in Real Estate & Construction and government projects. It is currently representing both private Recommended in Corporate/M&A and Projects & bidders and the Government in several government projects, Infrastructure (2017) and assisting foreign clients in their investments in the ¥ Legal500, Leading Individual, Aris Gulapa (2016, Philippines and the ASEAN region. 2017) ¥ IFLR Financial & Corporate Guide, Notable (2017) On February 23, 2017, G-Law opened its affiliate office, ¥ IFLR Energy & Infrastructure Guide, Notable (2016) Gulapa & Baclay LLP, in New York.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 31 LITIGATION

As commercial disputes become more common across Asia, support services for litigation and arbitration are mushrooming as well, and LITIGATION’S technology firms providing lawyers a host of tools to work with.

BRAVE NEW From untenable business do more reliable research and disputes, growing conflicts tied investigations that can boost to intellectual property rights and lawyers’ litigation efforts. the longer reach of corruption One such company is legislation, there is no getting away Australia’s Law In Order, which WORLD from the fact that litigation is on the “offers a range of services from rise throughout Asia. document production and data As more companies undertake processing to consulting, where BY ALFRED ROMANN litigation or face the potential you empower lawyers to optimise for litigation in multiple – and the discovery and trial experience often quite different – legal for their clients,” says Amanda environments, law firms and Whelan, head of global sales and companies are seeking service marketing. providers that can support them. According to Whelan, demand The demand for legal services for Law In Order’s consulting and associated with litigation is also advisory services only increases driving demand for litigation after clients become familiar with support services in Asia. the various services and how these These support services cover can be used to facilitate litigation a range of areas, including digital efforts. document management, in-depth “Our clients in Asia had to research and investigation services. experience the benefits of our As the amount of litigation in Asia holistic and integrated suite of goes up, so does the number of services before they were valued,” litigation support services that she explains. “The support we lawyers can access. offer is real and it’s not ‘too good On the technology side, to be true’ – it’s just a new business companies are offering more model for the region.” e-discovery and document In terms of legal services, Law production services as well as In Order can process hard copy and e-trial and trial management electronic documents 24 hours a solutions, among others. Others day. The company also provides are working with lawyers to e-discovery services to collect and process electronic material used in litigation and can include specific offerings such as secure document review, analytics, case assessments and reviews. Law In Order also collaborates with firms to produce documents

32 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM LITIGATION and manages services, including “A considerable amount of work that we do in the disputes space, matter consulting and court book preparation. The company also for lack of a better word, involves asset tracing. Often, clients will provides a series of e-trial solutions come to us – typically through their external counsel – during the and currently works with more than process when they are considering legal proceedings in order to 2,000 firms. Meanwhile, U.S.- get a sense of a counterparty’s assets, their value and where they headquartered Nardello & Co. are located. This way, they can make an informed decision as to uses its investigative expertise to whether to throw good money after bad.” — Ben Rowse, Nardello & Co. support litigation and arbitration services, says Ben Rowse, the firm’s managing director and head of Asia-Pacific, and a lot of its work is “in the context of a dispute or a IN DEMAND “There are very few countries regulatory investigation.” Providers of litigation support that we have not conducted The types of investigation services say that demand for their investigations in globally since we that Nardello undertakes includes services is surging. started back in 2003,” says Rowse. internal investigation following “The trends have been And as the firm expands, it is finding allegations of corruption, white- consistent, but we have invested that the patterns of demand for its collar criminal defense, as well as more in our business development services have shifted, particularly civil proceedings such as litigation and consulting teams so they have in Asia. or arbitration, in which they are the bandwidth to take our legal and “It is fair to say that there are called to support one party. tech knowledge to the community,” issues with regards to corruption Nardello, which also has says Whelan of Law In Order. “As in many Asian jurisdictions,” offices in the Americas, Europe a result, we have experienced observes Rowse. “It’s inevitable and the Middle East, “has a very double-digit growth by expanding that companies from outside of the strong legal DNA,” points out who we serve.” region, whether it is from Europe Rowse. He adds, “Our founder is The company’s growth has, in or America, are often obliged for a former federal prosecutor, and some ways, tracked the increasing internal compliance reasons to one of the reasons why he founded amount of litigation activity carry out integrity due diligence Nardello & Co. back in 2003 was throughout the region. into their potential partners, that he felt that there was a gap in “Historically, most of our investment targets or senior the market. Investigative firms were clients in the late 1990s originated executive hires.” not providing general counsels or from large proceedings heading All this due diligence happens external counsels with legally and to trial, but over the years, this long before litigation, but it ethically sourced information and demographic has changed,” says generates useful information intelligence that could be used Whelan. “Directions received from and is a necessary step towards to assist with the legal decision- corporate clients, the bench and identifying and avoiding risks. making and strategy.” citizens have rightfully put a more “Inevitably however, things Nardello’s work could involve significant emphasis on resolving do go wrong,” adds Rowse. “This anything from research for or into matters outside of the court is partly driven in part by the witnesses on one side or another through arbitration and mediation.” environment of the jurisdictions of a litigious procedure to double- On the other hand, demand for that our clients are working in. So checking on the availability of Nardello’s services is driven both by we are brought in by counsel to information that may or may not the increase in litigation between investigate particular allegations have been disclosed or that may be firms and by the broadening the of wrongdoing, or [to] gather 654Total number of in the public domain. There is also a reach of legislation such as the intelligence to inform their legal cases disposed by the High Court fair amount of support work that is U.S. Foreign Corrupt Practices Act decision-making strategy.” in Hong Kong in also association with assets. (FCPA) or the UK’s Bribery Act. Because of legal privilege, 2016

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 33 LITIGATION

“Historically, most of our clients in the late 1990s originated good use in an extensive range of settings but with specific focus. from large proceedings heading to trial, but over the years, this “A considerable amount of demographic has changed. Directions received from corporate work that we do in the disputes clients, the bench and citizens have rightfully put a more space, for lack of a better word, involves asset tracing,” says significant emphasis on resolving matters outside of the court Rowse. “Often, clients will come through arbitration and mediation.” — Amanda Whelan, Law In Order to us – typically through their external counsel – during the process when they are considering legal proceedings in order to get a sense of a counterparty’s assets, Nardello’s services are often North American or European their value and where they are engaged via the ultimate client’s clients are, Chinese companies see located. This way, they can make an external counsel, but sometimes a it as a way to gather information informed decision as to whether to multinational will hire the company about other types of risk that they throw good money after bad.” direction through its general may face when they partner with The questions that are worth counsel. other companies or individuals, asking from the outset of a legal “Either way, our investigative whether it is in Africa, in North action revolve around the ultimate scope of work is determined by the America or elsewhere in Asia,” worth of the move. Litigation can type of information or the facts or explains Rowse. be costly, so firms might reach intelligence that is needed to feed One concern is that the market out to Nardello when they are the legal strategy,” says Rowse. is both crowded and unregulated, first considering an action, or they particularly for firms that provide might reach out to them after a NEW CLIENTS investigative support. Since there judgment to help trace assets or In general, Western firms are more are also no standards to follow or gather information to enforce it. likely to enlist litigation support, a particular methodology for them Enforcing a judgment may but this is changing. to abide by, clients have to be be challenging, particularly when “Japanese companies, for vigilant when choosing a service dealing with companies from example, are realising that they provider. some Asian jurisdictions that can no longer ignore the FCPA and “One of the challenges from a have the bulk of their assets in are starting to put in place more client perspective in engaging an their home countries and where robust compliance programmes investigative firm is making sure enforcement of judgments can that include conducting anti- that you engage a reputable one. be problematic. This happens corruption focused due diligence There is no industry regulator, often with legal actions involving on their partners and third-party and therefore not any standards Chinese companies which may intermediaries,” notes Rowse. In when it comes to work product but have assets in mainland China, response, Nardello opened an also investigative methodologies where the legal system may be office in Tokyo last year to advise differ,” says Rowse. “What is the different from the one where and help Japanese companies point of paying an investigation litigation takes place. manage their risk exposure. firm to carry out an FCPA-focused “One of the things that Another promising market investigation when that firm we spend a lot of time doing is China. “Interestingly, Chinese ends up bribing a government at the beginning of an asset companies are also realising clerk to obtain information? It’s trace investigation is managing 13Number of that they need to be a bit more nonsensical.” expectations. There is obviously no corporate savvy when they are operating in guarantee that we will find assets. enforcement overseas markets,” says Rowse. SPECIFIC EXPERTISE But day in and day out, we are actions brought by the U.S. DoJ “While their concerns might not Legal professionals can put the carrying out such investigations,” in 2016 be driven by FCPA issues like our expertise of firms like Nardello to says Rowse.

34 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM

can adopt. Key things would be TRANSPORTATION having a common understanding before signing any memorandum of understanding (MOU) between governments.

ACROSS BORDERS The international nature of projects creates its own challenges. “Perhaps in the next five to six years we may see a lot going on in the contractor’s side. There are a lot of challenges between cross border projects,” says Niwes Phancharoenworakul, the Bangkok-based co-managing partner of Chandler MHM. “It’s really time consuming work dealing with a lot of policies and government offices.” “When the project is not in the KEEPING country, we need to contact lawyers in those countries,” says Ratana Poosombudlert, a senior partner at Chandler MHM. “Considering projects that are public private ASEAN ON TRACK partnerships, there are some procedures, normally it will take Countries in Southeast Asia have plans to build a rail network a long time and it needs correct connecting the entire region. These ambitious transportation procedures to implement projects.” “Right now, Thailand would projects, however, face complex legal and regulatory challenges. like to expedite projects such as railway projects from Laos, but the negotiations are not finalized yet BY HAKY MOON With the rapid economic The projects’ international because financial terms are not development in Southeast scope means that sufficient care clear,” says Ratana. Asian countries, cross-border must be taken to ensure that any Transportation projects are transportation projects have been dispute can be referred to suitable mainly divided into five phases, gaining steam in the region. tribunals and that any foreign visioning and policy, long-range Indonesia, for example, has award can be enforced in the planning and programming, the $6.1 billion Jakarta-Bandung jurisdictions of both the project environmental and preliminary airport rail link and the $4.8 billion assets and the project parties. design, final design, construction Bukit Asam Transpacific Railway, “At the very early stage, these and lastly operations and which connects various coal mines infra-projects tend to be driven maintenance. to Lampung port. High-speed rail by the government. It typically Even long before the first phase links are also planned between needs commercial and political of transportation projects takes Thailand and China through Laos, understanding. Legal works for place, legal advisors are brought Malaysia and Singapore – a project railway projects, by nature, are very in to discuss appropriate funding that could cost up to $25 billion. complicated. The more fragmented models for each country. The scale and cost of the the ownership of the various railway “The legal situation changes projects reflect the commitment assets, the more complicated the once companies cross borders. of Southeast Asian governments legal framework will have to be to Operational issues change and to urbanise existing transportation manage all that,” says Justin Tan, a coordination is needed between systems, both domestically and partner at Clyde & Co. governments before companies can regionally. And correspondingly, From the very beginning, even call for the tender process,” the legal work behind these projects lawyers would be involved to advise says Tan. is piling up, and even more so with on possible legal frameworks and The tender process is a process international railway projects. options that the government whereby governments and financial

36 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM institutions invite bids for large “A challenge with a projects that must be submitted TRANSPORTATION before a deadline. lot of infrastructure projects in this region PUBLIC AND PRIVATE is that there is often an is that there is often an insistence That said, so far in ASEAN there on some level of local ownership. has been a trend of PPPs (public- insistence on some level As advisers we look at the extent private partnerships) becoming of local ownership. As of local sourcing materials and more and more prevalent, because advisers, we look at the local labor when a foreign party most governments in the region is involved in these projects,” says do not have sufficient financial extent of local sourcing Tan. capabilities to fund the projects in materials and local For instance, high-speed rail their entirety. labour when a foreign can only run on certain routes. Countries in Southeast Asia, The land that companies need to except Singapore, lack project party is involved in acquire is often non-negotiable. implementation or operational these projects.” Many of the emerging expertise, making PPP an attractive economies in Southeast Asia don’t — Justin Tan, Clyde & Co funding option. have strong compulsory land “On the legal side, some legislation in place like Singapore, challenges come with grappling and government-led projects like foreign investment rules, which are transportation face hurdles. different in every country. A certain this train to stop here and there, “This framework doesn’t exist level of protectionism requires you but not this town because it might in most Southeast Asian countries. to have a local partner,” says Tan. not be profitable. All of these have And if you rely on verbal assurances “A lot of expensive lessons to be taken into account,” says Tan. it can be abandoned anytime. You were learnt about what worked and Aside from legal works have to look into the local legislative what didn’t work, and that would surrounding funding, legal advisors environment to see whether or not be very useful when applied to less in the region also face issues to do local parties will be able to deliver developed economies in Southeast with local land policies, which are land acquisitions,” says Tan. Asia. Previously these infrastructure different among governments. “When the infrastructure is services would be completely state- “Policy is so important. For going across countries, layers of funded, but that puts burden on the private sectors, it’s challenging complex issues are multiplied. Land taxpayers,” said Tan. to influence public sectors. Even acquisition, which is a hallmark of Nomita Nair, partner at Berwin if we really want to push forward any transport project, would be Leighton Paisner, agrees. “The with projects, we have to wait for discussed,” says Nair. “Generally most important advice that legal the policy. You need the capacity of when it comes to intergovernmental advisers give involves technical decision makers in governments to agreements, you have to have two and commercial aspects. For approve certain things. A lot of the governments coming together and example, how will the government time there are delays,” says Nair. agreeing on different things. It’s receive funding? How will the The best-case scenario is a different regulatory framework. funding come to the project? The when the local partner is working Private sector lawyers may not be government appoints a consortium in the foreign company’s favor, involved at that stage.” of consultants,” she says. with the local partner likely being The reason behind this comes And even when funding has a prominent and well-connected down to the cost of private sector been discussed, another key company that can assist the foreign lawyers. challenge legal advisors would company with obtaining permits “Governments could seek have to look at would be price and licenses and land acquisition advice on a discreet level, but most competitiveness. issues. of the time in-house public sector The government imposes But that isn’t always the case, teams deal with it,” says Nair. certain rules such as how much and legal advisors are brought in, “There’s always a risk foreign sponsors can charge for explaining why the region is now there. Different policies such as railways and tickets, and adds seeing “more international law immigration don’t get talked about specifications. firms opening up”, according to a lot. It would be interesting to see “Some specifications are on Tan. how quickly things will get off the where the government wants the rails in Southeast Asia. It would be station to be, all of which can be LAND CHALLENGES a very good case study on how it driven by noneconomic factors. The “A challenge with a lot of progresses and what sort of lessons government could say they want infrastructure projects in this region can be learned,” she adds.

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 37 ENERGY

BRIGHT FUTURE As part of its integrated energy blueprint, the Thai government is

placing increasing Employees of a solar farm company take notes between panels at the farm in emphasis on Nakorn Ratchasima province, Thailand. REUTERS/Athit Perawongmetha renewable energy. In particular, this Thailand’s solar power sector, already a These include Board of Investment (BOI) leader in Southeast Asia, continues to shine incentives such as exemption of import duty on means a heightened brighter with each passing year. If 2014 saw equipment and machinery, and exemption of focus on solar 470 MW of solar power capacity being newly corporate income taxes resulting from the sale power, which is installed, the figure rose to 722 MW in 2015. And of renewable energy or the saving of energy for based on the latest data officially published by periods of up to eight years; investment grants expected to see the Energy Regulatory Commission (ERC), 723 from the Department of Alternative Energy continuing growth MW had been newly installed just in the first Development and Efficiency (DEDE) at the and development in nine months of 2016 alone. This growth and Ministry of Energy/Energy Policy and Planning development is only expected to continue in Office; data support in the government’s 2017. And lawyers in 2017. commitment to provide solar (and wind) data Thailand are already Jessada Sawatdipong, senior Partner at maps and a one-stop-service center at DEDE; witnessing an uptick Chandler MHM, says that much of this is due to and the Energy Service Company (ESCO) Fund, the government’s commitment to develop the which is financial support by DEDE to lower in related work. sector. “With the continued resistance to new the risk for investments in renewable energy- coal-fired power plants in Thailand, we note focused business, equipment leasing and credit more interest in renewable energy projects, guarantee facilities. BY RANAJIT DAM including solar projects here,” he says. “The government’s strong commitment to renewable CLIENT INTEREST energy, with a focus on solar, has also supported The government’s commitment is being matched client interest in solar projects. And finally, the by investor interest. “Regarding solar matters in decreasing cost for developing solar projects – Thailand, Chandler MHM is often asked to advise including low tariffs for solar generation – and clients on possible new rounds of bidding for solar the time-frame involved in solar power start-ups, projects, site issues, such as zoning, licensing as compared to, say, gas, coal or other renewable and land titles, and on regulations affecting projects has also driven client interest in this various solar programs, such as agricultural co- renewable energy sector.” ops, educational institutions, solar rooftops, and Jessada cites some of the government’s others, and their legal authority to enter into solar measures to support renewable energy growth. energy arrangements in Thailand,” says Jessada.

38 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM KEY LAWS AND REGULATIONS: ENERGY — Energy Regulatory “Other issues the firm is asked to provide advice Commission (ERC) that the solar power industry in Thailand will notifications and on include tariff-related concerns, creation of regulations; continue to grow during the next few years, as security under the recently introduced Business — BOI notifications on the government continues to open bids for solar Collateral Act, and the financing limitations incentives for specific projects. In addition, we see a market trend imposed by security and assignability of PPAs.” business activities; toward more rooftop solar projects which either For clients who want to get into the solar — Electricity Generating sell electricity to government offtakers such as sector, Jessada’s firm stresses the importance of Authority of Thailand the PEA and the MEA, or to the private sector, having good local representation with a strong (EGAT), Provincial such as major hyper markets, warehouses, Electricity Authority track record of assisting with energy and natural (PEA), and Metropolitan factories and office buildings,” he notes. resources projects. “A thorough due diligence Electricity Authority Jessada’s firm also continues to track exercise is highly recommended, as well as a (MEA) regulations; innovation in solar technology. “This year complete understanding of any caveats to an — Foreign Business may not be the year that delivers new and announcement for any bid round for renewable Operation Act (FBOA); groundbreaking solar technology, but we do projects,” he adds. — Town Planning Act and anticipate that module makers will push forward Ministerial Regulations; development schedules for improved module — Land Code, specifically GREAT PROSPECTS the prohibition on land efficiency which in turn will provide reduced At the end of 2016, Thailand’s renewable ownership by foreigners; pricing and thus even greater motivation for energy market remained the most established — Enhancement and solar uptake in the years ahead,” he says. “Over in Southeast Asia. In addition, targets set by Conservation of National time, the combination of technological advances the National Energy Policy Council (NEPC) to Environment Act. and continuing price reductions could also affect triple the country’s installed solar PV capacity the need for government incentives. We continue of 2,021 MW in 2015 to 67,000 MW by 2036 Source: Chandler MHM to monitor private sector R&D and government remain in place, observes Jessada. “We expect developments carefully.”

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 39 EVENT

Asian Legal Business will host the fourth annual ALB Malaysia Law Awards 2017 on 6 OVERALL NOMINATIONS April at the Intercontinental Kuala Lumpur, (EXCLUDING DEALS) an illustrious black-tie affair celebrating the accomplishments of Malaysia’s legal LAW FIRMS LAW FIRMS community. “Each year, ALB strives to make the Skrine 10 Donovan & Ho 5 Malaysia Law Awards and nomination Albar & Partners 9 Daniel & Wong 5 process more inclusive, transparent and Azmi & Associates 8 Tay & Partners 4 portray an accurate reflection of the legal Adnan, Sundra & Low 7 Shang & Co 4 market. This year we have received an Shearn Delamore & Co 7 Christopher & Lee Ong 4 overwhelming number of submissions, with Low & Partners 6 more than 40 new law firms and companies Wong & Partners 6 joining in 2017. We look forward to welcoming Rahmat Lim & Partners 5 IN-HOUSE TEAMS and celebrating the best, brightest and rising Raja, Darryl & Loh 5 Unilever Malaysia 3 stars in Malaysia’s legal community in April. Shook Lin & Bok 5 Sime Darby Group 2 We wish all the finalists the best of luck at the upcoming ceremony”, says Amantha Zaid Ibrahim & Co 5 Sun Life Malaysia 2 Chia, Head of Legal Media Business, ASEAN Mohamed Ridza & Co 5 Mercedes-Benz 2 and North Asia. Therefore, this year, ALB is pleased

SUPPORTING ORGANISATIONS ALB SUPPORTS PROUDLY PRESENTED BY

The next series in the ALB Law Awards will be held in Tokyo, Japan. Submissions are ALB JAPAN now open until 7 April. Please contact Yvonne Lau at [email protected] LAW AWARDS 2017 or (+852) 2843 6547 for more details.

40 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM EVENT

to announce the introduction of new and exciting award categories such as East Malaysia Law Firm of the Year and West Malaysia Law Firm of the Year. To recognise the achievements of women in law, 2017 also sees the introduction of Woman Lawyer of the Year, which has seen a fruitful response from both private practice and in-house lawyers. These new awards are introduced alongside popular award categories such as Islamic Finance Law Firm of the Year, Boutique Law Firm of the Year and Litigation Law Firm of the Year. On the in-house side, ALB is delighted to recognize the top in-house teams in Malaysia, To view the complete shortlist of finalists, please visit the website at: in banking, financial services and TMT www.legalbusinessonline.com/awards/malaysia-law-awards-2017 sectors. The Malaysia In-House Team of the The winners will be exclusively announced at the black-tie gala dinner and Year award will be open to in-house teams awards ceremony on 6 April. For reservations, please contact Shyanne Chen across all industries, and the finalists come at: [email protected] or (+65) 6870 3253 from sectors spanning retail, manufacturing, FMCG and more. The Law Awards will also This event will sell out – do not miss your chance to attend! recognize the top deals and top individual lawyers from Malaysia’s legal market.

SUBMISSIONS CLOSING SOON Visit www.legalbusinessonline.com/awards/seasia-law-awards-2017

Featuring Categories: Singapore Managing Partner | Woman Lawyer | Young Lawyer | Insurance In-House Team | Innovative In-House Team | Medical Law Firm | Rising Law Firm | Corporate Citizenship Law Firm

Its 13th year, ALB SE Asia Law Awards 2017 will bring together the brightest and finest law practitioners across Southeast Asia and India. For more details on submissions, contact Caryl Aquino at [email protected] or +632 982 5938. For sponsorship inquiries, contact Amantha at [email protected] or +65 6870 3917

We look forward to receiving your submission soon.

AWARD ASSOCIATE SPONSOR SPONSOR ALB SUPPORTS PROUDLY PRESENTED BY

LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MARCH 2017 41 THE EXPLAINER

U.S. mining giant Freeport-McMoRan warned last month that it could take the Indonesian government to arbitration and seek damages over a contractual dispute that has halted operations at the world’s second-biggest copper mine. Marking a sharp escalation in the row, the government also said it would go to arbitration if no resolution was reached. Freeport Indonesia spokesman Riza Pratama speaks during a news conference in Jakarta, Indonesia, February 20, 2017. REUTERS/Beawiharta WHAT IS AT STAKE FOR FREEPORT AND INDONESIA? Freeport’s 2016 copper sales from adopt the new permit once it has a stable Indonesia were worth about $2.4 billion. agreement providing the same rights and But despite being one of the largest tax the same legal and fiscal certainty it has payers in Indonesia, Freeport’s relations HOW FREEPORT’S now. The government has said Freeport with the government have become must comply with Indonesia’s 2009 strained, particularly as Southeast Asia’s mining law, recent regulations and its 1945 biggest economy has sought greater ROW OVER ITS Constitution, which in some cases have control over its natural resources. different requirements than terms set out Freeport and the government have in Freeport’s 1991 contract of work. been in talks on converting its 1991 mining INDONESIAN MINING contract to a new permit and have made HOW HAS THE ROW ESCALATED? some progress in recent years. In January, On Feb. 17, the government issued a new however, Indonesia introduced rules that export permit for Freeport, allowing it to prevent Freeport from exporting copper CONTRACT export up to 1.1 million tonnes of copper concentrate until it adopts a new permit concentrate over the next year while that would terminate its current contract proposing a six-month window to negotiate and impose new terms, including some ESCALATED fiscal terms. Freeport has said it “cannot different than those already agreed. accept” the new permit that would require Freeport’s current contract is not due to BY FERGUS JENSEN OF REUTERS the termination of its existing contract at expire until 2021, and it wants guarantees the end of this window, regardless of where that its mining rights will not change before negotiations were at. committing to $15 billion of investment to The rules require Freeport to divest expand its Grasberg underground mining up to 51 percent of its Indonesian unit WHAT HAPPENS NEXT? operations. compared with 30 percent currently. So Freeport’s contract allows 120 days to far it has divested 9.36 percent. “use its best endeavours to resolve the WHAT IS AT THE HEART OF THE LATEST Freeport would also have to pay dispute through consultation and use ROW? a dividend tax, 10 percent VAT and an of administrative remedies.” If this fails, The halt in January to Indonesia’s exports export duty of up to 7.5 percent on copper conciliation or arbitration proceedings of semi-processed ore exports came as concentrate exports. would be held in Jakarta, or another part of a renewed push for miners to build location if agreed by both sides. domestic smelters and squeeze more from WHAT ARE BOTH SIDES SAYING? If Freeport opts to terminate its its mineral resources. Miners like Freeport Freeport says the stoppage of its exports contract, all contract properties would were given an option: exports could only and attempts to enforce the new rules on be offered for sale to the government at continue once they replaced contracts of taxes andand divestment divestment violate violate its its contract contract of cost or market value, , but not below the work with special mining permits. ofwork.According work. According to Freeport, to Freeport,the new mining the depreciated book value.If the government A new permit would allow Freeport to newpermit mining lacks thepermit legal lacks and fiscalthe legal certainty and does not accept this offer, Freeport would apply for an early extension to its mining fiscalit needs, certainty and that it underneeds, Indonesianand that under and have 12 months to dispose off assets. rights, but would also leave it open to Indonesianinternational and law itsinternational contract should law itsbe All roads, schools and other immovable prevailing rules and changes to taxes from contractimmune shouldto changes. be immune to changes. properties that are in public use would which it is currently exempt. The company said it is only willing to become Indonesian property.

42 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM

THE BACK PAGE

and requiring their law firms to work together with their providers. So, the AS CLIENT RELATIONSHIPS CHANGE, SOME LAW FIRMS choice of whom we get to use is not our choice in those cases.” COULD FIND SOLACE IN VENDOR MANAGEMENT ROLE This isn’t to say, however, that all law firms are hesitant to get in the ALSP BY BILL JOSTEN game. Nearly one in 10 law firms in the survey reported that they had created an affiliated entity to function as an ALSP to A lot of the attention paid to the “Nearly 61% of corporations try and meet some of this client demand. recently published 2017 Report on the A great many more have adopted what State of the Legal Market, released surveyed reported they are is commonly referred to as a “supply jointly by The Center for the Study of the already using some sort of chain management” mentality. With this Legal Profession (CSLP) at Georgetown alternative service providers approach, law firms look to help their University Law Center and Thomson clients oversee the work of the multiple Reuters Legal Executive Institute (LEI), for at least one task.” vendors as well as manage relationships has focused on the discussion of the and ensure output quality while not fate of the billable hour. While drawing sacrificing the degree of strategic control less fanfare, the discussion around the the firm would lose if they missed out on erosion of the law firm franchise is no less the work entirely. significant. Service Provider Study – released by One partner summed up this The report talks about the increasing LEI, CSLP and the Saïd Business School approach quite nicely: “Why would we willingness of clients to explore new at the University of Oxford – examines want to give away revenue? We also think strategies to “enhance the value they this emerging segment of the legal there’s a danger to letting somebody receive for the ‘legal spend.’” Clients are marketplace, and what it may mean to else into activity with clients. We think an increasingly examining their traditional the traditional law firm franchise. integrated proposition is one the clients workflows to determine what portions In one of the first key findings from like as opposed to having to manage two can be disaggregated from traditional the ALSP study, nearly 61 percent of or three providers.” delivery models and farmed out to corporations surveyed reported they are There is no doubt that the law firm’s alternative vendors. Work that once already using some sort of alternative role as an advisor to its clients is shifting. would have gone to a law firm, or in service provider for at least one task. The real question is how much influence some instances, work that a law firm The services provided by ALSPs range does the law firm want to have over never even had a chance to win because from the more mundane, such as basic the impact of this shift. Obviously, the it’s been farmed out from the beginning, corporate filings and compliance, to much traditional law firm franchise has changed is driving a wedge between law firms and more specialised cases where ALSPs are — but that change also represents new their clients. actually providing subject-matter-expert opportunity for those law firms willing to The use of alternative vendors has attorneys to corporations looking for pursue it. resulted in much more of an ad hoc expertise not present within their walls. transactional relationship with clients Corporations are also mandating that Bill Josten is the Senior Legal Industry Analyst than was common in the past, when one their outside law firms use ALSPs for tasks for the Thomson Reuters Legal Executive Institute. firm would handle all aspects of a client’s that the firm traditionally may have staffed Josten consults with law firms nationally on issues matter from start to finish. Increasingly, themselves. For example, more than a related to law firm profitability, pricing, and cost the law firm can be looked at as simply quarter of law firms that participated in recovery. This piece first appeared on the Thomson one more vendor providing legal services the study reported that they used ALSPs Reuters Legal Executive Institute’s website to the client, rather than as a trusted for tasks like litigation support, document www.legalexecutiveinsitute.com. Reprinted with advisor and business counselor. review and eDiscovery. Of those firms, kind permission. Another recently released report nearly a quarter or more said that the use The 2017 Report on the State of the Legal Market highlights the role these new alternative of ALSPs was due to client mandates. As and the 2017 Alternative Legal Service Provider legal service providers (ALSPs) are playing one law firm partner stated, “Clients are Study can also be downloaded from the same in the market. The 2017 Alternative Legal increasingly developing their own panels source.

Asian Legal Business is seeking thought-provoking opinion pieces from readers on subjects ranging from Asia’s legal industry to law firm management, technology and others. Please email [email protected] for submission guidelines.

44 ASIAN LEGAL BUSINESS – MARCH 2017 LEGALBUSINESSONLINE.COM A Lionbridge Company

We speak fluent legalese. In all languages. International legal communications can be challenging, especially across different languages. This is why we offer comprehensive language solutions in litigation and M&A support. As specialist partners to law firms, general counsel and legal publishers, we ensure the letter of the law, across languages, borders and cultures. Our suite of solutions includes translation and interpretation services, professional transcription support, customized language solutions, and flexible Virtual Data Rooms, amongst others.

For more information, please contact us: Email : [email protected] Hong Kong : +852 2117 1852 Greater China : +86 21 3425 9566 ASEAN / ANZ : +65 6508 0616 Your World Ready Partner in Asia and the Pacific

Lex Mundi is World Ready for your opportunities and challenges in the APAC region. With on-the-ground presence in 22 Asia/Pacific countries and 3,000+ legal advisors, Lex Mundi member firms provide an unrivaled network of deep local insight and a flexible approach to legal solutions. Based on longstanding experience working together, collective investment in legal know-how and mutual commitments to client service, Lex Mundi member firms are uniquely positioned to deliver coordinated, multijurisdictional solutions anywhere your business needs to go.

Locate a Lex Mundi member firm in Asia and the Pacific: www.lexmundi.com/apac