A government-appointed committee headed by Attorney General Chan Sek Keong has proposed to allow foreign law firms to practise in Singapore by way of joint ventures with local firms.
At a luncheon organised by the National Business Association of the European Union, Deputy Prime Minister Lee Hsien Loong said that the government has been studying the issue of liberalising the legal market here. Responding to a foreign lawyer’s question on why it is not possible for lawyers from other jurisdictions to practise in Singapore, BG Lee said that Attorney-General Chan Sek Keong and his government-appointed committee will soon publish a report addressing the issue.
BG Lee distinguished the legal service from other forms of services, saying "law is different from manufacturing, making biscuits or banking services or even software services, because the legal system is really part of the fabric of society." He then went on to say that lawyers are not just persons for hire, they are officers of the high court who help to administer the justice system of the country. Since the laws of each country reflect its norms, values, morals and circumstances, a Singaporean perspective has to be preserved when a case is tried in a local court.
The radical proposals to be announced by the committee, however, will allow foreign firms to form joint ventures with local firms to practise Singapore law and not only in the areas of corporate or financial law. A restriction is that these foreign lawyers will not be allowed to litigate.
Business Times reported that the proposal will be welcomed by foreign firms. At present, clients dealing in transactions involving offshore and onshore foreign firms may only advise clients on offshore transactions. A local firm has to be retained to handle any onshore work as it is governed by Singapore law. This has hampered many foreign firms from being a "one stop shop" for their clients.
The committee has also proposed that the number of joint ventures between local and foreign firms be limited to about half a dozen. Simon Bonifant, a partner of Clifford Chance, was reported to have said that such a numerical limit will not be a "market-driven solution". He suggested that the government set down conditions under which firms can qualify give everybody a chance to apply.
