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Amid escalating concerns surrounding China’s security clampdown, Taiwan tensions, and constraints on civil liberties, prominent US law firms are strategically expanding their presence in Singapore. The country’s advantageous access to other Asian nations and its allure as a corporate business hub have been key drivers behind this trend. Notable law firms such as Orrick Herrington & Sutcliffe, Cooley LLP, Baker Botts, McDermott Will & Emery, Greenberg Traurig, and Goodwin Procter have established operations in Singapore since 2020.
The shift towards Singapore is evident as leading figures in the legal industry emphasize its significance. Richard Rosenbaum, Executive Chair of Greenberg Traurig, described Singapore as the emerging epicenter for business activities. The departure from China is attributed to growing tensions with the United States. President Joe Biden’s recent executive order limiting investments in select advanced technology firms in China and his unfavorable characterization of China’s Communist Party leaders have fueled this disengagement. Moreover, the arbitrary enforcement of local laws in China prompted the US State Department to caution against travel to the nation.
Reflecting this trend, Dentons announced its separation from a connected China operation to comply with regulations pertaining to data handling beyond China’s borders. Several firms, including Orrick, Baker Botts, McDermott, and Vinson & Elkins, have shuttered at least one of their China offices since 2020. Proskauer Rose decided to close its Beijing office while retaining a presence in Hong Kong.
Gerald Singham, who oversees Dentons’ operations in Southeast Asia, highlights Singapore’s allure as a gateway to the rest of Asia, making it a compelling destination for international law firms. The presence of independent institutions offering legal services for global businesses is a key draw, exemplified by the Singapore International Commercial Court, a venue for arbitration.
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The impact of the COVID-19 pandemic has also played a role in this shift. Lawyers based in Hong Kong, grappling with China’s stringent pandemic response measures, have been attracted to Singapore’s more lenient approach. The city-state’s ascendancy as a financial hub was highlighted when it overtook Hong Kong in the Global Financial Centres Index survey of “future competitiveness.”
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Singapore’s appeal to firms like McDermott is underpinned by the government’s strategy to attract knowledge-intensive sectors such as bioresearch and energy. Ashish Raivadera, a managing director at Major, Lindsey & Africa, underscores Singapore’s reputation as a desirable place for legal professionals to live and work due to its stability and business-friendly environment.
While China’s evolving national security laws and regulations prompt more firms to consider leaving, certain firms, including Baker McKenzie, Hogan Lovells, and Mayer Brown, have chosen to maintain substantial practices in China despite the risks.
Although some of the top 20 most profitable law firms, as gauged by profits per equity partner in the AmLaw 100, still lean towards Hong Kong, Singapore’s appeal is undeniable. Greenberg Traurig’s Rosenbaum acknowledges the importance of the firm’s Shanghai office but remains cautious due to China’s data protection regulations and increased regulatory scrutiny.
Industry leaders emphasize the need for prudent decision-making and disciplined expansion strategies amid newfound opportunities in Singapore. As US law firms recalibrate their Asian presence, Singapore emerges as a hub of promise amidst the complex and evolving legal landscape of the region.
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