DAC Beachcroft has submitted an application to the Malaysian Bar Council for a licence to form a joint venture (JV) in Malaysia.
The JV, officially known as an international partnership (IP), will be formed between DAC Beachcroft and its existing local association firm Gan Partnership and will focus on insurance and reinsurance matters.
The two firm’s association started in 2012, a year after Gan Partnership was established by a team of lawyers from large Malaysian outlet Lee Hishammuddin Allen & Gledhill.
The relationship is led by Singapore-based insurance partner Steven Dewhurst from the international firm side and by founding partner Gan Khong Aik from the Malaysian side.
Gan Partnership currently has four partners and 14 other lawyers. The firm primarily focuses on dispute resolution and intellectual properties.
Partners from both firms confirmed the application. One source said: “Many international insurance companies have expressed concerns about the lack of good local legal advisers in the insurance sector in Malaysia. The joint venture will not only help international firms expand their practices in Malaysia but also boost the expertise in the local legal market. The deal will help fill the gap in the market and provides a choice for the international insurance players.”
The source also unveiled that the international partnership (IP) will enable DAC Beachcroft’s lawyers to work with lawyers from Gan Partnership under one roof for specialised insurance and insurance work and to issue one bill to clients. However, the local firm will remain an independent local entity and all local legal advice needs to be delivered by the local lawyers in the IP.
Malaysia has liberalised its legal services market with three Amendments to the Legal Profession Act, which became effective in June 2014. Under the new regime, foreign firms are allowed to provide international legal services and advice in the country with a Qualified Foreign Law Firm (QFLF) licence or a licence to operate an IP with a Malaysian law firm. Malaysian firms are also able to employ foreign lawyers to provide foreign legal advice.
UK firm Trowers & Hamlins has so far been the first and only firm to have taken advantages of the liberalisation measures. Trowers was granted a QFLF licence in Malaysia a year ago. The licence allows it to advise on international legal issues from its Kuala Lumpur office, without the need for a local associate firm.
It is understood DAC Beachcroft will be the first international firm to operate an IP with a Malaysian firm if its application is successful. The UK firm is in need of rebuilding its Singapore office following the move of office head and insurance partner Ben Nicholson to rival insurance firm Kennedys late last year.