Opening Speech by Deputy Secretary of Law, Mr Calvin Phua, on behalf of Minister for Culture, Community and Youth, and Second Minister for Law Mr Edwin Tong SC, at The Next Frontier of Lawyering - From ESG to GPT Conference
3 Aug 2023 Posted in [Speeches]
Professor Lee Pey Woan
Dean of the Singapore Management University Yong Pung How School of Law
Mr Yeong Zee Kin
Chief Executive of the Singapore Academy of Law
Professor David Wilkins
Lester Kissel Professor of Law;
Vice Dean for Global Initiatives on the Legal Profession; and
Director of the Centre on the Legal Profession at Harvard Law School
Judges
Friends and Colleagues
Distinguished Guests
Ladies and Gentlemen
Introduction
1. A very good morning to all of you.
2. Minister Edwin sends his sincere apologies that he could not join you today. He had very much wanted to be here, but could not, due to some unforeseen circumstances. So, he has asked me to deliver his speech on his behalf.
3. This is what he would like to share with you today.
4. Happy to join all of you today, at the SAL-SMU Conference on “The Next Frontier of Lawyering: From ESG to GPT”.
5. As the title suggests, we are gathered here, to attempt to gaze into the crystal ball, and predict “the next frontier of lawyering”.
6. As legal practitioners, making predictions is not new to us – I would say, it is an essential lawyering skill. What is the possible outcome of my case? What will the opposing party be willing to agree on? How will the opposing counsel approach the matter? How will the judge perceive the evidence and arguments presented? What is the likelihood of success on appeal?
7. So, today’s focus seems right down the speakers’ alley! No pressure!
8. I took a look at the programme. It covers many current topics of the day, including emerging economies, ESG, and technology. These are topics you will naturally think of, when you talk about “the next frontier of lawyering”.
9. So, I thought I will share something slightly different. I will share my observations of the world we live in now, and the impact on lawyering; and why I think Singapore is equipped to navigate the world around us.
10. What kind of world do we live in now? All of us will have our own take. For me, I call it the three ‘Bs’:
(a) The ‘broken’ world.
(b) The ‘balanced’ world.
(c) The ‘borderless’ world.
The ‘Broken’ World
11. The first ‘B’ – the ‘broken’ world.
12. The world is becoming increasingly more polarised and conflicted.
13. There are wars around us.
(1) Russia’s invasion of Ukraine.
(2) Trade wars between:
(a) US and China
(b) US and EU
(c) US and Canada
(d) US and India
(e) Japan and South Korea
(f) Australia and China
(3) These are all major economies in the world.
(4) You have heard the phrase:
(a) “When the elephant sneezes, everyone catches a cold.”
(b) What’s more, a few elephants sneezing at around the same time.
14. This has led to spiralling commodity prices, disrupted global supply chains, greater global food insecurity, skyrocketing interest rates, and rising inflation.
15. And this, in turn, has triggered nationalist and isolationist tendencies. Some countries retreated from globalisation, and begun to look inward, as a result of populist movements. According to UNCTAD’s latest Global Trade report, published on 21 June 2023, growth in global trade in services and goods has slowed down; and “Friendshoring” has been on the rise since late 2022, characterised by a reorientation of bilateral trade flows, to prioritise countries that share similar political values.
16. All these macro developments impact businesses, and hence, their legal advisers. Businesses will value lawyers, who know what is happening around the world, and can read the global and local political situations, to assess their impact on the business. That is why chief legal officers are increasingly called “chief horizon scanners”.
17. We have all heard of how some organisations had gotten into a fix, because they did not adhere to a country’s policy and position – erroneously referring to disputed regions as sovereign states, or using the wrong maps to depict the borders.
18. We have also heard of how some countries changed their laws and policies, after a new political party took over, leaving the companies with little time to respond.
19. As the businesses’ trusted legal advisers, lawyers are looked upon to anticipate and minimise such legal risks as much as possible. It is not an easy feat, and involves constant monitoring, learning, and adapting. It requires one to join many dots, and to make it more challenging, these dots are not clear in the first place, and can shift. That is why it is all the more important for all of us, to come together like this, to share experiences and expertise.
The ‘Balanced’ World
20. Next, the second ‘B’ – the ‘balanced’ world.
21. Global inequalities between countries have declined over the last two decades. According to the World Inequality Report 2022, the gap between the average incomes of the richest 10% of countries, and the average incomes of the poorest 50% of countries dropped from around 50 times, to a little less than 40 times.
22. 50 years ago, the middle-class population lived almost exclusively in Western countries. Today, they are increasingly spread around the world, with a large proportion in the Asia-Pacific region.
23. Similarly, North America and Western Europe accounted for a major proportion of the global legal services market. They still do, but the legal services markets in other regions are now growing faster than them. I think we all see this in our day-to-day interactions – we interact with more and more lawyers from developing economies. They are pitching for the same project as us, or competing for the same in-house counsel position as us. They are well-educated, proficient in English (which is the global business language), and technically strong.
24. What this means for lawyers is that there will be greater competition. Both practising lawyers and in-house counsel need to be clear about their value propositions, and unique selling points, to their clients and organisations. How do they stand out in the crowd?
The ‘Borderless’ World
25. Finally, the last ‘B’ – the ‘borderless’ world.
26. The world has become more interconnected, due to:
(1) International cooperation, which removes barriers between countries, e.g. EU, FTAs.
(2) Advances in transportation, which facilitate the flow of trade and investment.
(3) Digital connectivity, which enables people from different parts of the world to connect and exchange information with ease.
(4) Increased mobility, with people increasingly moving across borders to live, work, and study. This mobility has been taken one step further, with digital nomads gaining popularity in recent years. Thanks to the rapid improvements in technology, we are no longer tethered to a physical office. We have the freedom to work from anywhere in the world. It has been estimated that there are 35 million digital nomads worldwide. I do not know how many lawyers there are amongst them, but I will not be surprised if there is more than a handful.
27. This ‘borderless’ world has a few implications on lawyering. More international business. And along with it, different legal systems, regulations, practices, and cultures, to understand. New legal challenges, such as jurisdictional disputes, IP infringement across borders, conflicts involving international laws, and even practice areas that were once considered domestic have become more complex, due to inter-marriages, transnational crimes, and cybercrimes.
28. It also means that lawyers can offer legal services across the globe, without a physical presence, and being bound by the prevailing legal services regulations. Again, more competition overall.
Singapore in the ‘Broken’, ‘Balanced’ and ‘Borderless’ World
29. Where does Singapore and the Singapore legal industry stand in this challenging world’?
30. I may be biased, but I think we are well equipped to tackle the three ‘Bs’, because of the strong foundations we have built over the years, which are not so easily replicable.
31. I will use three ‘Rs’ this time to explain why I think so – (1) rule of law; (2) reliability; and (3) relations.
32. First, rule of law. Singapore’s strong rule of law is what makes people trust us, and despite our small market, use us as a node in, from and through which they transact. We are fair in our dealings, and do not selectively apply laws to certain groups of countries, or people from these countries. In a ‘broken’ world, this can no longer be taken for granted. There is always the inclination to do what’s best, rather than what’s right. For Singapore, we know we cannot afford to do this – once we yield, our credibility will be finished.
33. Second, reliability. Singapore has a reputation for being a dependable country in various aspects. Reliable government, economy, society, transportation system, healthcare system, public services, workforce, etc.
34. This is not easy to achieve, even in developed economies, where we see political leadership changing often; transportation networks paralysed by strikes; overwhelmed or corrupted public service; uncompetitive workforce due to strict labour laws. In this ‘balanced’ and ‘borderless’ world where people have their choice of any location in the world to do business, provide or procure legal services, or to work, Singapore will be attractive.
35. Third, relations. I am very proud of the fact that our government, our judiciary, and our industry work closely with one another. I don’t think I have seen this anywhere else in the world. This has enabled us to work together to advance our economy and society, rather than spend time and effort going up against each other.
36. This extends to policies which may upset certain segments of the local bar in the short run, but are beneficial to Singapore in the long run. For example, liberalisation of our legal services regime to allow certain foreign law firms to practise Singapore law in permitted areas; and simplification or automation of court processes, to allow members of public to self-help.
37. We are fortunate that our bar is able to see the bigger picture. It is this strong partnership that allows us to move fast and sure, in effecting changes, to enhance Singapore as a legal services hub.
Challenges in the Horizon
38. However, we cannot rest on our laurels.
39. There continues to be headwinds ahead of us, which may blow us away, if we are not careful.
(1) Increased competition, as mentioned earlier, from talents around the world, and from robots.
(2) Rising inflation, which makes Singapore less cost competitive – both for businesses to procure legal services from, and for foreign lawyers to work in.
(3) Talent retention, coupled with aging population.
(a) Lawyering is notoriously hard work – long hours, demanding clients.
(b) It is not easy to keep young lawyers in the profession, when they have so many more choices, compared to in the past.
40. We are very mindful of these issues, and are looking to address them. For example:
(1) Developing a legal technology platform, and equipping our local law firms with technology tools, so that they can be more productive, and provide higher quality service to their clients.
(2) Introducing secondment and attachment programmes for our lawyers, to help them grow capabilities in key markets and domains.
(3) Fundamentally reviewing our legal education, to ensure that we are nurturing people who are equipped to face future challenges.
(4) Just to name a few.
Conclusion
41. The legal sector is at the precipice of change.
42. It is an exciting time for legal professionals.
43. I am personally optimistic about the future of Singapore’s legal industry and legal profession.
44. I hope that you are as eager as me to see what is to come, and to see if our speakers’ predictions come true!
45. With that, I will end my speech.
46. I wish you a fruitful conference over these 1.5 days.
47. Thank you.
Last updated on 3 August 2023