Legal Market Trends in Singapore

Singapore’s international prominence as a legal practice hub is as strong as ever before, with several law firms announcing the opening of offices in Singapore in the last few years. In the last year alone, high-profile firms such as Quinn Emanuel and Ropes & Gray have announced their arrivals to the Singapore market, joining other recent arrivals such as Baker Botts, Orrick and Goodwin. Among the many factors that are pulling firms towards the Singapore market, a few key areas include the movement of private capital into Singapore, Singapore’s renowned international arbitration centre, and the energy transition and its increasing importance across South-East Asia such as in Indonesia. 

In terms of dispute resolution, the Singapore International Arbitration Centre, or SIAC, is widely regarded as one of the world’s leading international arbitration centres. Based on SIAC’s most recent annual report, which was its 2022 version, SIAC_AR2022_Final-For-Upload.pdf, India was the top foreign user at SIAC, and SIAC received cases from parties from 65 jurisdictions in total. 88% of the cases handled at SIAC in 2022 were international cases. Geopolitical issues such as the Russian war in Ukraine, as well as a hangover from the pandemic, have created the conditions for disputes of an international nature to come to the fore, including force majeure cases. Singapore is very well placed to accommodate these disputes.  

An interviewee during our research, who was referring to India-related disputes being heard in Singapore, noted “the rise in use of Singapore law and use of Singapore as a seat” adding that “we see Singapore law being cited in the way that English law used to be.”  

Singapore being cited as a hub was a key theme during this year’s Arbitration research, with one source noting that “Singapore is a commodities trading hub and we are seeing large disputes arising from the collapse of some traders.” Aside from this, Singapore is also noted as a centre for cryptocurrency and restructuring/insolvency disputes, among other areas. Interviewees further note strong activity in energy, infrastructure and construction disputes, as well as investor-state arbitration. 

The flow of private capital into Singapore, particularly from China, is also a notable trend. Sources see Singapore becoming a regional hub for investment funds, in comparison to Hong Kong, with many family offices setting up in Singapore and moving their capital with them to Singapore’s investor-friendly regime. An interviewee reports that “after the Variable Capital Company Act took effect, more Chinese clients are coming to Singapore to set up a fund manager and get the licence to set up a VCC fund.”