Not since Singapore Inc opened its doors for business some 40 years have so many new law firms entered the market. The past 12 months alone have seen no less than nine international firms make the move, with more tipped to open later this year. ALB looks at what we expect from some of these newcomers.

The legal community in Singapore was abuzz for most of last year with predictions about which firms would be selected by the Singapore government as recipients of licenses under its Qualifying Foreign Law Practice (QFLP) scheme. Most were put out of their misery late last year when Herbert Smith, Norton Rose, Clifford Chance, Allen & Overy, Latham & Watkins and White & Case were confirmed as licensees. But amidst this, a number of other foreign firms were still planning their entry into the Singaporean legal market.

Ask the managing partner of any of the new firms that have opened up in Singapore over the past 12 months and chances are they will tell you their move into the country is governed by a number of factors: client demands, broader or regional strategy, and revenue potential. But irrespective of what answer is given, moving into Singapore is not so much about the local work will be generated as it is about the possibilities on offer across the south and Southeast Asia. 

India via Singapore

International law firms who operate in the Lion nation realise that being there offers far more than the possibility of just picking up Singapore-related work; it is a stepping stone for regional domination.
“Singapore is the place to be,” says Rhonda Hare, the Singapore managing partner of Australian firm Blake Dawson. “Our move into Singapore was client led and we act for a number of Singapore clients in the hotels, tourism and hospitality sectors, but the move is equally about what we can gain from the region. Singapore is well known as being the business and financial hub of South East Asia and we want to expand our operations in the region by being here.”

Denton Wilde Sapte closed all of its Asian offices  – Singapore, Tokyo and Hong Kong – in 2004, but Jonathan Solomon, the partner in charge of resurrecting the firm’s Singapore office, cites similar reasons behind his firm’s move back there, saying that it is being looked at as the firm’s launching pad to penetrate the emerging markets in the region.

“At the time of closing the Asian offices, it was seen as a strategic and financial decision. The strategy did not see the Far East being profitable enough,” he says. “What has changed is that we have started seeing a good stream of instructions from not only Singapore, but from places like Indonesia and Vietnam so for our trade finance group it made sense to open up here. The Singapore relaunch comes in response to client requests. They wanted to continue to instruct us here, but said we needed people on the ground.”

But as much as Singapore is a gateway to Southeast Asia, it also offers international firms unprecedented access to the closed Indian market. This is cited by managing partners of new Singapore entrants as perhaps the most exciting development. Each of the new kids on the block already boasts relatively well developed India-related practices, but being in Singapore presents an opportunity to further develop this aspect of their practice with a view to entering a liberalised Indian legal services market. 

“We have had a deliberate focus on India for about two years now,” says John Rogers, co-managing partner of Walkers’ Singapore office. “It makes sense now that most of this work will be done through our Singapore office owing to geographic proximity and the presence of Indian clients here.”

Rogers is keen to keep a close eye on the Indian market. “We are looking at what is on offer in India, but we have been making regular trips there on the back of increased demand for British Virgin Islands and Cayman law advice on Indian transactions. Mauritius is still the preferred destination for investment into India, but as domestic Indian banks start to lend in transactions there will be more work on offer,” he says.

NEXT: Firms that are setting their own agenda

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