ALB: How have you seen Southeast Asia’s legal market develop during your more than two decades in the region?
Henderson: I joined Herbert Smith in 1993 in Hong Kong. Hong Kong was the major legal hub for all of Asia at that time, and I remember handling cases from Singapore, Indonesia, Thailand and Vietnam as well as China, Japan, Korea and the Hong Kong market. Most international law firms had no presence at all in Southeast Asia, let alone a network. We didn't open an office in Singapore until 1995, Thailand and Indonesia some years later, and I'd have laughed if you'd suggested then that I would spend nine years working for Herbert Smith in Bangkok.
Twenty years on, the picture has changed enormously. Hong Kong's still a major centre, particularly for China matters, but Singapore is unchallenged as the legal hub for Southeast Asia. There's way over 100 foreign law firms here now, and they have spread beyond Singapore to open in Thailand, Indonesia, Vietnam, even Myanmar. It hasn't stopped yet, either – Malaysia is now inviting applications to set up there.
Today, there's a feeling in Singapore that some of the smaller foreign firms may be struggling for profitability and survival. But overall, you see more and more international law firms that at one time wouldn't have seemed remotely interested in Southeast Asia, physically here and digging in for the long term. That speaks volumes about the importance and attractiveness of this region.
It's not just the usual big English and U.S. law firms. Japanese and Korean law firms have also opened in Singapore, Vietnam, Thailand, Myanmar and so on, looking to service their clients' investments in this region. That would have seemed inconceivable 10 years ago, but it reflects the sustained deal flow from North to Southeast Asia.
Finally, there's the growth of Southeast Asian law firms as sophisticated operators in their home markets and also – in the last few years –starting to project themselves regionally. Singapore firms are building networks across Southeast Asia, Thai firms are setting up in neighbouring countries, at least one regional specialist is establishing offices beyond Southeast Asia. I see all these developments as signs of the importance and maturity of Southeast Asia as a legal market in its own right – it's an exciting time to be here.
ALB: What are some of the initial objectives you want to accomplish during your stint?
Henderson: I am lucky to be part of a strong Southeast Asia practice. Our business performance across the region is really encouraging, and we're doing great work. But we haven't emphasised that enough in the recent past; perhaps we've been too inward-looking as we worked to digest our merger. We need to celebrate our successes more widely. For example, we ought to be talking proudly about the groundbreaking corporate and finance work that we've done this year, including India's first and largest debt raising, challenging investments into the TMT sector in Myanmar, major development projects in Malaysia, Brunei and the Philippines, and M&A and project financing transactions in Indonesia. We should be celebrating the string of market-leading deals that Richard Nelson and his team are handling in our energy practice. Not to mention the continuing success of our disputes and arbitration practice, which I truly believe to be at the front of the market across the region.
So my focus is really more on steady growth of what we already have, rather than any need for short-term fixes. We're already boosting our lineup to support growth and to offer new specialisms. Gavin Margetson recently relocated to Bangkok from Tokyo to co-head the disputes team there; Matt Osborne moved from Melbourne to Singapore earlier this year to offer specialist EPC and project expertise; Nicola Yeomans came up from Sydney last year to boost the corporate team. We will be announcing more strategic relocations into the region soon as we expand the business and respond to client needs.
ALB: Herbert Smith Freehills has gained a reputation for its energy practice; however, the perception of its corporate practice doesn’t seem quite as strong. How are you looking to address this imbalance?
Henderson: Certainly, we've invested in our energy practice globally and we've built that expertise over many years. As a result, we've been very successful in landing major deals and disputes in Asia-Pacific and particularly in Southeast Asia. Kudos to the energy team for their successes, and long may that continue. But we ought to ensure that the corporate practice gains full recognition too in a crowded market. As I've said, I don't think we've done enough to promote the quality of our existing corporate work in Southeast Asia. But when I look at the work we do here, I fail to see an imbalance in strengths. We now have five corporate partners in Singapore (not including the energy team) who work closely with the partners and team in Jakarta – and as I've already said, they're busy handling truly impressive mandates across the region.
ALB: Southeast Asia has become an increasingly crowded legal market in the past few years. How can HSF continue to remain competitive in this environment?
Henderson: We are one of the largest and longest standing international law firms in this region, with presences in Singapore, Bangkok, Jakarta and Yangon, and I cannot emphasise enough how important that is to our ability to advise effectively and to provide real value to clients who are investing and operating in these markets.
It's true that firms are piling into this region, and everyone wants a share of the pie. But it may be harder for them to offer insight and value without having been on the ground for a significant time. Vietnam, Cambodia, Thailand, Myanmar, Malaysia, India, Indonesia – they're close to each other but they have very different social and business cultures and legal landscapes. You can't assume they are all the same and you certainly can't assume they are just like home, wherever home is. Foreign businesses coming into these markets need lawyers who understand how things work on the ground from long-term experience and who can navigate the political, cultural and legal sensitivities. They need lawyers who can use that experience to give sensible practical legal advice, suitable for each local market.
We have to be technically strong too, of course. Whether it's deals or disputes, clients expect technically excellent legal advice as well as local knowledge. We aim to combine all these strengths in order to offer a level and depth of service which sets us apart.
ALB: In what ways would you like to see the firm evolve, particularly in Southeast Asia, during your time at the helm?
Henderson: We will not be changing for change's sake, but I certainly don't intend to stand still. We have the most highly regarded dispute resolution practice in the region. International directories rank our international arbitration practice at the top of the market; similarly our local disputes practices in Thailand and Indonesia. We must continue to be the firm of choice for premium, “bet the company” cases and cases involving complex multijurisdictional issues, also large and significant domestic disputes.
As for corporate matters, we can be proud of the work that is being carried out and the quality delivered to our clients. We are working increasingly on this region's market-leading transactions; we need to consolidate that position and win the recognition that this deserves. We're already there in the energy sector, where we have been seen for some time as the top-tier adviser. We need to ensure that we maintain this reputation throughout the region; for Asian clients also on investing in other parts of the world.
So I guess there's plenty to do! All in all, I want to make our region the firm's greatest success story. And if we can achieve that while remaining a place that people like to work in - certainly working hard but with lives beyond the office, contributing to the region and not just working here, celebrating diversity and inclusivity across our teams, and not being shy of the need to be financially successful too - if I can help in making progress in all these ways, I will feel that I've made a contribution and I will definitely need a long lie-down at the end of it!
