The advent
of globalisation has ushered in a closely interconnected world in which open
economies, like Singapore, play host to a variety of firms from all over the
world. This phenomenon can also be witnessed in the law sector; liberalisation
of Singapore’s legal sector in recent years has brought about a more dynamic
environment for law firms in Singapore. One of the most significant measures
was to introduce the Qualifying Foreign Law Practice (QFLP) in 2008, allowing
selected foreign law firms to practice certain aspects of Singaporean law
locally. The Law Society of Singapore currently lists six firms that qualify
under the QFLP.
A
liberalised legal services market has brought about a plethora of benefits, not
just for Singaporean law firms but also for companies in other sectors. The
combination of local and foreign lawyers in Singapore has boosted Singapore’s
legal status greatly, for the larger pool of legal talent allows for a greater
ability to undertake more complex international cases. Singaporean lawyers have
benefited greatly from this move, for they are exposed to these difficult legal
cases without having to travel overseas. This increase in quality and quantity
of lawyers who are well-versed in handling both domestic and international
cases also provides support for a more robust foundation in other aspects of
the economy, providing an additional arm to fuel economic growth in Singapore.
Singapore’s
increasing prominence in the global stage where the legal sector is concerned
covers not just litigation cases, but also arbitration processes. This can be
attributed to the fact that five of the six law firms in Singapore licensed
under the QFLP are providing arbitration services, playing a role in expanding
the arbitration sector in Singapore. Alongside the Maxwell Chambers,
Singapore’s integrated dispute resolution complex, these infrastructures have
allowed Singapore to gain recognition as a leading arbitration centre in the
world. These measures put in place to liberalise Singapore’s legal sector can
thus be seen as an encouraging step forward in holistically increasing
Singapore’s legal sector.
With eight
of the ten top-earning global law firms establishing their offices in
Singapore, there is mounting concern that the increased competition in the
legal sector would adversely affect Singaporean lawyers. Smaller law firms in
Singapore, for instance, are concerned that they would be eclipsed by the
presence and dominance of larger firms. However, measures have been put into
place to ensure that lawyers in Singapore will not lose out. Foreign firms
under the QFLP will first have to be employed by qualified solicitors in
Singapore in order to practice Singaporean law, and are not permitted to
practice certain areas of litigation. This ensures that Singaporean lawyers and
law firms have a proactive part to play in these measures, and get to benefit
by enjoying greater choice, rather than face a dearth of legal cases.
These
recent trends towards liberalising Singapore’s legal sector have pushed
Singapore towards enjoying the status of a legal hub on the global stage. This
is in sync with developing Singapore into a truly cosmopolitan and
sophisticated economy, joining ranks with traditional powerhouses New York,
London and Tokyo.
