Malaysia > Legal market overview
Malaysia recorded the fastest regional growth in mergers and acquisitions in 2010 by number of deals, and in capital markets the Petronas Chemicals listing became Southeast Asia’s biggest IPO of 2010. The Islamic finance sector is also thriving with growing foreign interest in sukuk issuances.
As such, Malaysia continues to compete with other vibrant markets in Southeast Asia. However, a major concern is the leeching of young legal talent from the market, while increased competition between firms locally – due to undercutting of fees and an overcrowded market of smaller players – means that market consolidation is considered to be likely.
The long-running debate over liberalisation of Malaysia’s legal market continues, with proposals to allow a limited number of international firms to practise Islamic finance. Commentators expect that if the market were to open up then foreign players would be more likely to establish joint ventures than standalone offices.
Recent alliances between local and foreign firms include that of Azmi & Associates with Indonesia-based Law Offices of Remy & Partners and Jeff Leong, Poon & Wong with China’s Dacheng Law Office. Zaid Ibrahim & Co ended its tie-up with Singapore’s Allen & Gledhill LLP, which is now associated with the newly formed firm of Rahmat Lim and Partners.
Shearn Delamore & Co, Skrine and Shook Lin & Bok retain their position as the traditional elite, but well-connected firms such as Zul Rafique & Partners, Zaid Ibrahim & Co and Kadir, Andri & Partners continue to encroach on market share.
Key legislative changes include the Malaysian Competition Act, Personal Data Protection Act, Whistleblower Protection Act and the amended Capital Markets Act. Meanwhile, the Chief Justice implemented a system to speed up dispute resolution, while the new Admiralty Court and the New Civil Court were also established.