Malaysia market access extended for foreign law firms
News that foreign law firms can operate in Malaysia for five years has been welcomed by the Law Society of England and Wales.
The president of the Malaysian Bar Council recently wrote to the British High Commissioner to Malaysia confirming the extension of the Qualified Foreign Law Firm (QFLF) licence to five years. Previously it was a three-year licence, which was a relatively short period for a foreign legal firm to realise their business plans and did not grant certainty to firms.
The Law Society together with the UK Ministry of Justice and British High Commission Kuala Lumpur have been pushing for the extension for several years, as part of the legal services working group* which is led by the UK’s Ministry of Justice. Firms can now enter in the knowledge that a three-year licence is no longer a permanent feature of practice in Malaysia. Instead, this period will turn to five once they reach the stage of renewals.
Law Society president Nick Emmerson said:
“We welcome the Malaysian Bar Council extending market access for foreign law firms.
“Although this applies strictly to renewals of licences at this time, and not new licences issued, it does provide further certainty for any firms looking to enter the Malaysian market.
“We will continue to work with colleagues at the Malaysian Bar Council to address our members’ concerns around the existing licensing process, conditions and requirements. We are hopeful to be able to make positive progress in the coming months and continue to engage on areas of mutual interest.”
Justice minister Heidi Alexander said:
“Our lawyers and law firms are the best in the world. This positive change will increase business certainty for UK firms in Malaysia, boosting the attractiveness of their market.
“Legal services contributed £34 billion to the UK economy in 2022. It is positive steps like this one that strengthen the UK’s legal ties around the globe and turbocharge economic growth.”
Minister of state for trade policy Douglas Alexander said:
"The UK is the world's second largest services exporter for a reason – our companies, including our law firms, provide top quality services. Helping them thrive is a big part of our key mission to grow the economy across the UK.
"Today’s news is great for our firms because it will give them the confidence they need to invest in this exciting market, building on the £1.6 billion of services we already export to Malaysia.”
Notes to editor
* The legal services working group is a part of the UK Malaysia Joint Economic and Trade Committee.
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