MANY FUTURES OFASIAN BUSINESS & LAW
Speaker: Jeff Leong (Senior Partner)
Messrs Jeff Leong, Poon & Wong,MALAYSIA

L A W, S T R A T E G Y & C O M M U N I C A T I O N S
Copyright JLPW 2013. All rights reserved.

Introduction

Changing roles of law and lawyers in Asian Business
The work of business lawyers in Asia
Legal Education and the training of lawyers
Law Firm Expectations and how to prepare to be a goodbusiness lawyer• Alternative jobs for law graduates••••

Copyright JLPW 2013. All rights reserved.Global Business Trends andtheir impact on lawyers

Copyright JLPW 2013. All rights reserved.

Foreign Direct Investments (FDI)and Companies VenturingAbroad
MANNER OF EXPANSION ABROAD:• Agency / Distributorship• Foreign representative office, branch or subsidiary• Strategic Alliance and Joint Ventures• M&As of foreign companies• Licensing of Technology• Franchising

Copyright JLPW 2013. All rights reserved.

Why companies venture abroad•
••
•••••
•

Expand customer base
Increase sales opportunities
Better economies of scaleLower average costs and increase profits
Additional product/service lines that may not have enoughsupport in the domestic market
Tap overseas markets to extend product/service lifecycles thatmay be ending at home
Decrease sales fluctuation by selling abroad
Greater competitivenessImprove image, reputation and recognition
Copyright JLPW 2013. All rights reserved.

Recent FDI Trends••••

Japan’s lost decade, 1997 Asian Financial Crisis and 2008 Global FinancialCrisis• Akamatsu Kaname’s Flying Geese Formation• Japan as lead goose with NIEs as body and ASEAN/China as goosetail• NIEs such as South Korea, Taiwan and Singapore competing withJapan for export led economy strategy with China fast catching up
Impact of Fukushima power cuts, Thailand floods/military coup andChinese tensions• Increasing investments in Vietnam, Indonesia and Myanmar
Major M&A acquisitions by Japanese Buyers around the world in recentyears
Japanese investments in India, Bangladesh, Africa etc
Copyright JLPW 2013. All rights reserved.

Relationship between Businessand Law• Have lawyers been able to support the needs of Japanesebusinessmen?
Traditional Roles of Lawyers– JAPAN: Bengoshi– SINGAPORE & MALAYSIA: Advocate AND Solicitor– HONG KONG: Barrister OR Solicitor• Barrister with unlimited right of audience before courts• Solicitors with limited right of audience

Copyright JLPW 2013. All rights reserved.

The Work of Business Lawyers•

Guiding businesses through birth, growth, expansion and death cycles• Setting Up Companies & Businesses• Joint Ventures• Mergers & Acquisitions (Buying & Selling Companies)• Expansion Abroad• Commercial Agreements – Licensing Agreements, Agencies,
Distributorships, Tenancies, Franchising• Employment & HR Issues• Venture Capital• Initial Public Offerings• Corporate Finance & Capital Market transactions• Disputes & Litigation• Reorganisation, Insolvency & Dissolution
Copyright JLPW 2013. All rights reserved.

The Role of Business Lawyers• Legal Adviser• Navigating complex regulations• Drafter• Crafting complex deal documentation• Negotiator• Securing the best deal for the client• Investigator• Due Diligence and Background Checks• Lobbyist• Applying for approvals
Copyright JLPW 2013. All rights reserved.

Legal Expertise

•
•••
•

Sound knowledge of law and regulations
Track record of past transactions
Relevant Combinations of legal knowledge
Teams and cross border expertise
Depth and breadth of legal knowledge and expertise

Copyright JLPW 2013. All rights reserved.

Legal Skills

•••
•
••

Legal Analysis
Counseling Skills
Drafting skills
Negotiating skills
Deal Management
Team Management

Copyright JLPW 2013. All rights reserved.

Clearing Obstacles• Identifying / defining the problem• cause v symptoms• core v peripheral issues• Problem Solving• avoid postbox approach• avoid only stating the law• provide strategic solutions• don’t state the problem, solve it

Copyright JLPW 2013. All rights reserved.

Deal Management• Accomplishing the transaction• deal making v deal breaking• the problem of over lawyering• advise the client, let him decide• Speed• management by deadline• turnaround time
• team support and backup (“Pit Crews”)

Copyright JLPW 2013. All rights reserved.

Intellectual Capital• Specialist Knowledge• past experience• war chest of solutions• Market Knowledge• Insider’s view
• minefields, pitfalls, opportunities

Copyright JLPW 2013. All rights reserved.

Non‐Legal Skills• Independence and objectivity• Honest, detached point of view
• Perspective• Big Picture thinking• Frame and prioritize issues• Draw clients away from micro details• Judgment• Assist to make difficult decisions

Copyright JLPW 2013. All rights reserved.

Value Adding• Unexpected problem solving• Innovative solutions• Thinking out of the box• Connection• Connect clients to useful people• Connect clients to valuable information• Deal making• Sifting deals• Bringing deals to clients

Copyright JLPW 2013. All rights reserved.

Changes in the Role of BusinessLawyers• IN‐HOUSE LAWYERS JAPAN: Many companies hire in‐house lawyers and start training themonce they graduate from undergraduate law school. Now more arehiring Bengoshi as well.
 MALAYSIA & SINGAPORE: Many companies require in‐house lawyers
who have experience in practice for a minimum of 3 years.
 HONG KONG:
 There are Malaysian and Singaporean lawyers who have moved toHong Kong as they get higher pay working there.
 2 ways:i.
ii.

Registered Foreign Lawyer
Paralegal/ Legal ManagerCopyright JLPW 2013. All rights reserved.

Changes in the Role of BusinessLawyers (Cont’d) JAPAN: Assisting clients to expand business overseas.
 Collaborating with foreign law firms to support the needs ofclients.
 Opening foreign offices
 Proficiency in English has increasingly became more important.
 INDONESIA: Big local law firms normally do not handle court cases and mostly
deal with matters from overseas.
 WHY? Concerns over bribery in the courts and injustice.

Copyright JLPW 2013. All rights reserved.

Legal Industry in JapanOBSERVATIONS:• Most law firms in Osaka are focused on domestic work.
• Matters involving foreign legal problems are handled by big law
firms in Tokyo and Osaka.
• Japanese law firms opened offices in China earlier• Recent trend of opening offices in South East Asia
– Singapore, Vietnam, Myanmar– Postings of Japanese lawyers to other Asian nations• Japanese SMEs
– Tend not to use lawyers and often get into trouble– Frequent use of “consultants” without legal training– Approach foreign law firms directly without going through law
firms in Japan
Copyright JLPW 2013. All rights reserved.

Legal Industry in Japan• Japanese Conglomerates– Inhouse legal department– Used to appoint and deal direct with foreign lawyers
overseas without going through Japanese law firms– Use of Japanese Law Firms to deal with matters outside
Japan increasing• Big Japanese law firms might start to take in 2 types ofgraduates:‐i. With excellent results for domestic Japanese work
ii. With good results, but with good English and problem‐
solving skill for regional postings outside Japan
Copyright JLPW 2013. All rights reserved.

How Legal Education in Japancan be Improved?
• Allow students to have more exposure to business law such as
Commercial Transactions, Company Law, Contract Law,
International Arbitration, International Business Transactions etc.
• Allow students to learn basic practical legal skills such as legal
research, writing, advocacy, mooting, negotiations and mediation.
• Encourage critical and creative thinking.
• Encourage internships and foreign student exchanges

Copyright JLPW 2013. All rights reserved.

How Legal Education in Japan
can be Improved? (Cont’d)• Enhance communication skills of the students ‐ both oral andwritten, especially in English.
• Allow and encourage exposure to other disciplines such as
economics, finance, management, accounting etc.
• Increase commercial awareness of the students – howbusinesses work and how it may affect the clients.
• Teach Interdisciplinary Analysis and Problem Solving.
Copyright JLPW 2013. All rights reserved.

Alternate Routes for Law
Graduates• TO WORK OUTSIDE JAPAN Sharpening communication skill especially English andother foreign languages.
 Culture Crossers ‐ Able to understand local culture.
 Walk out of comfort zone – mix with local people.
 Cross‐cultural understanding as invaluable skills forJapanese business* People who are able to move in and out of different
cultures are valuable *Copyright JLPW 2013. All rights reserved.

Alternate Routes for Law
Graduates (Cont’d)

PROBLEM• INTERDISCIPLINARY
STUDY Enhancing problem‐
solving skills.
 Value creation.

Law

PublicRelations

Economics* People who are able tocross, interpret andcommunicate between
different disciplines areinvaluable *Finance

Copyright JLPW 2013. All rights reserved.

Alternative Jobs for LawGraduates (Cont’d)• CONSULTANT
 Consulting projects, regardless of their nature, always
originate from a PROBLEM.
 Identifying, analysing and solving clients’ problems.
 Applying knowledge, skills and experience to clients’problems.
 Cross Cultural Consultants ‐ Econo‐Legal Consultants?
 Good salaries for First Year Consultants
 Western Consultancy Firms: JPY 5 to 6 million
 Japanese Consultancy Firms: JPY 3.5 to 4.5 million
 No need to pass Bar Exam!
Copyright JLPW 2013. All rights reserved.

You Should Try……
• READING MORE BOOKS Not only limited to reading law books.
 Example of good books: stories about companies’ failures/ success.

• IMPROVING ABILITY IN MASTERING ENGLISH AND
OTHER FOREIGN LANGUAGES Practise more in speaking English.

• TRAVEL AND CULTURE CROSSING
 Travelling, working and living abroad, learning newcultures

Copyright JLPW 2013. All rights reserved.

Q&ADiscussion

L A W, S T R A T E G Y & C O M M U N I C A T I O N S
Copyright JLPW 2013. All rights reserved.

Contact:jeff.leong@jlpw.com.myL A W, S T R A T E G Y & C O M M U N I C A T I O N SCopyright JLPW 2013. All rights reserved.