Foreign Lawyers: A Threat to the Legal Profession in Malaysia?

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Foreign Lawyers: A Threat to the Legal Profession in Malaysia? Written by: Muhammad Faiz bin Hussin Shokri Bachelor of Shariah and Law (Hons.) (LL.B/LL.Bs) Islamic Science University of Malaysia (USIM) November 2014 1.0 INTRODUCTION Generally, to be admitted as an advocate and solicitor in Malaysia, a person must strictly qualifies several terms and conditions before he becomes the member of the bar. All matters pertaining to the qualifications and requirements for admission to the Bar in Malaysia were basically governed by the provisions under the Legal Profession Act 1976 (the Act). To be eligible for admission, a candidate must satisfy all requirements as are provided in the Act which may be broadly categorized as academic requirements, practical requirements as well as formal requirements.

Transcript of Foreign Lawyers: A Threat to the Legal Profession in Malaysia?

Foreign Lawyers: A Threat to the Legal Profession inMalaysia?

Written by:

Muhammad Faiz bin Hussin Shokri

Bachelor of Shariah and Law (Hons.) (LL.B/LL.Bs)

Islamic Science University of Malaysia (USIM)

November 2014

1.0 INTRODUCTION

Generally, to be admitted as an advocate and solicitor in

Malaysia, a person must strictly qualifies several terms and

conditions before he becomes the member of the bar. All matters

pertaining to the qualifications and requirements for admission

to the Bar in Malaysia were basically governed by the provisions

under the Legal Profession Act 1976 (the Act). To be eligible for

admission, a candidate must satisfy all requirements as are

provided in the Act which may be broadly categorized as academic

requirements, practical requirements as well as formal

requirements.

As to the academic requirements, this is satisfied if a

candidate can show that he/she is a 'qualified person' within the

meaning of Section 3 of the Act. Under the Act, there are only 3

ways for a person to become such 'qualified person'. The first

one is a person who has passed the final examination leading to

the degree of Bachelor of Laws of the listed universities. The

second is the barrister-at-law of England. And the third category

is the person in possession of such other qualification as may by

notification in the Gazette be declared by the Board to be

sufficient to make a person a qualified person for the purposes

of the Act.

Such person must then satisfy the other two requirements,

which are practical (i.e: pupilage or chambering) as well as

formal requirements (i.e: registration, long call) before he/she

may petition for the admission1.

The development of this qualification had seen several

changes in past few years thanks to the previous third category

of admission. In this category, it practically gives the power to

1 Qualifying Board. 30 April 1998. “Admission Requirement”. Malaysian Bar. http://www.malaysianbar.org.my/.

the Bar Council on the advice of the Board2 in order to make any

changes, developments, or revocations to the basic qualification

of admission without having the need for Parliament to pass the

amendment. Even nowadays, a person who has passed the final

examination leading to the degree of Bachelor of Laws conducted

by a scheduled university in New Zealand and Australia is also

may be declared to be the qualified person.

Before 2014, Malaysia has never established a firm and clear

standing regarding the admission of foreign lawyer into Malaysian

legal practice. This is perhaps as due to the different country

practices the different types of legal system. Some country may

practices one type of legal system while others practices the

mixed legal system which means a combination of two or more legal

systems. Even in terms of profession, Malaysia for example,

practices the fused profession which combines the advocate and

the solicitor into a single profession unlike England which

differentiates between these two.

This year, the stand pertaining to the foreign lawyer’s

admission seems to have a significant change in history through 2 ‘Legal Profession Qualifying Board’ as provided under Section 4 of LPA 1976.

the so-called liberalization of legal practice by Bar Council by

way of inserting Part IVA into the Legal Profession Act though

the amendment was dated on 2012. This part specifically gives

such rights of admission to the foreign lawyer and firms to be

admitted into Malaysian legal services. It also governs on the

international partnership between a foreign legal firm and

Malaysian firm to settle in Malaysia.

Hence, this writing will basically focus on the impact of

such amendment into the Act. Whether this change might give any

benefit and advantages to the development of Malaysian legal

services or vice versa? Is our Malaysian legal service really

stable enough nowadays to adapt and face such challenges in their

practice? It will all be discussed further below.

2.0 DEFINITION OF FOREIGN LAWYER

Under Section 40A of the Legal Profession Act 1976, there

are basically two requirements need to be fulfilled for a person

to be recognized as a foreign lawyer. The provision defines

‘foreign lawyer’ as a person who is:

1. Duly authorized or registered to practice law in a state or

territory other than Malaysia; and

2. A partner, director (who holds equity in the corporation, in

the case of a corporation duly constituted for the purpose

of practicing law) or an employee of a foreign law firm or

Malaysian law firm.

In simple words, a person must be authorized or registered

to practice law outside the Malaysia and at the same time is a

lawyer either in foreign or Malaysian law firm. These two

requirements must be read conjunctively which means that it must

be fulfilled altogether for a person to be regarded as a foreign

lawyer under the Act.

Furthermore, the provision also defines ‘foreign law firms’

as a firm which provides legal services in foreign law and

includes a corporation duly constituted for the purpose of

practicing law established or licensed to provide legal services

by the appropriate licensing authority of a state or territory

other than Malaysia.

2.1 Types of Admission.

Other than being a barrister-at-law of England, there are

three new types of admissions for a foreign lawyer to be admitted

in Malaysia which have been inserted together with this new

amendment. The first one is by international partnership. As its

name connotes, an International Partnership will be a partnership

between a foreign law firm and a Malaysian law firm and the

amendment requires both to apply jointly to the Bar Council for

an international partnership license upon certain conditions3.

Secondly is by registering the firm as a qualified foreign

law firm. Unlike international partnership, a foreign law firm

licensed as a qualified foreign law firm will not require a

Malaysian law firm as a partner.  However only up to five

licences will be granted, as this avenue has actually been

created to support the Malaysian Government’s Malaysian

International Islamic Finance Centre (“MIFC”) initiative, as

announced by the Prime Minister in his policy speech on 22 Apr

20094. The licences will therefore only be granted to

3 Malaysia. 1976. Legal Profession Act. Section 40F(1).4 This statement was reiterated during the debate on the Legal Profession (Amendment) Bill 2012 and appears in the Hansard dated 11.6.2012.

international law firms that have proven expertise in

international Islamic finance, and which would be able to support

and contribute to the MIFC. In this category, the application

must be sent to the Bar Council and it will be subjected to

certain conditions5.

The third one is that he/she must be employed by a Malaysian

law firm where the firm itself must apply to the bar for such

employment6. However, that is not all. Even after choosing either

one type of the admissions, the foreign lawyer himself/herself

must then register for a practicing license before he/she can

actually practices in the Malaysian legal field7.

3.0 LIMITATIONS AND SAFEGUARDS

Unlike a normal lawyer in Malaysia, once a foreign lawyer

has been admitted under the Act does not mean that he is free to

practice as he was in his own country. Nevertheless, the Bar

Council and the Parliament had taken several measures of security

for such admission. In the amendment, it is fortunate that it

5 Malaysia. 1976. Legal Profession Act. Section 40G(1).6 Malaysia. 1976. Legal Profession Act. Section 40H(1).7 Malaysia. 1976. Legal Profession Act. Section 40J(1).

provides the foreign lawyer to comply with several kinds of

limitations for the need of check and balance. This is the most

important things to be considered and look into when we are

discussing whether a foreign lawyer is considered as a threat to

Malaysia or not.

3.1 Selection Committee and Disciplinary Board.

Under Section 40C(1) of Legal Profession Act 1976, it

provides that a Selection Committee is established in order to

make recommendations to the Bar Council for the granting of

license for international partnership8, qualified foreign law

firms9 as well as to Malaysian law firms to employ a foreign

lawyers10. It also has power to make recommendation pertaining to

the registration of the foreign lawyers themselves before the Bar

Council can issue the license and Practicing Certificate to

them11.

8 Malaysia. 1976. Legal Profession Act. Section 40F(3).9 Malaysia. 1976. Legal Profession Act. Section 40G(2).10 Malaysia. 1976. Legal Profession Act. Section 40H(2).11 Malaysia. 1976. Legal Profession Act. Section 40J(3).

Moreover, the composition of the Selection Committee also is

quite promising for them to make such recommendation. Basically

it requires the Attorney General and the President of the

Malaysian Bar to be the two permanent members in the committee12

as well as to chair the meeting. Although it is permissible for

them to appoint a person to be the alternate member in their

place13, still the composition of and the requirement for Bar

Council to act upon the Selection Committee may be regarded as

one of the securities to safeguard the legal services in

Malaysia.

Apart from that, Section 40M of the Act has provides another

body to control and regulate the admission of foreign lawyer into

Malaysia that is named as Disciplinary Board. In this section, a

registered foreign lawyer has the obligation to adhere to all the

rules and rulings of the Bar Council, which if he/she violates,

the disciplinary actions will be taken by the Board.

3.2 Permitted Areas

12 Malaysia. 1976. Legal Profession Act. Section 40C(2)(a) and (b).13 Malaysia. 1976. Legal Profession Act. Section 40D.

The foreign lawyer also does not have a freedom to practice

in every areas of law in Malaysia. The amendment had specifically

provides for certain areas of law to be permitted to and certain

areas of law to be prohibited from. This can be seen expressly

under Section 40C(1) of the Act where it states that the

Selection Committee has power to make recommendations for a

foreign lawyer to practice only in permitted practice areas.

Another provision is under Section 40J(2) of the Act where it

also provides that a foreign lawyer who satisfy the requirements

may apply to the Bar Council to practice in the permitted

practice areas14. Hence, after he had successfully registered, he

will only be permissible to practice in those particular areas

pursuant to Subsection (7) of the same Section.

So, what are those permitted areas and prohibited areas?

Under Section 40A of the Act, it defines the ‘permitted practice

areas’ as the areas of legal practice as prescribed by the Bar

Council by Rules made under this Act. The Rules that it refers to

in this Section is basically called as Legal Profession

14 It also provided under Section 40F(8) of the Legal Profession Act as the international partnership is only entitled to practice in permitted practice areas.

(Licensing of International Partnerships and Qualified Foreign

Law Firms and Registration of Foreign Lawyers) Rules 2014

(hereinafter as ‘the 2014 Rules’).

According to Rule 2(1) of the 2014 Rules, the permitted

practice areas are refer to as the transaction regulated by

Malaysian law and at least one other national law, or a

transaction regulated solely by any law other than Malaysian law.

In the case of a qualified foreign law firm, the amendment has

stated that such aspect of work regulated by Malaysian law shall

be undertaken in conjunction with one or more advocates and

solicitors of the High Court of Malaya holding a valid and

subsisting Practicing Certificate.

Moreover, under Subrule (3) of the same Rule also provides

that the practice in the permitted practice areas will

specifically exclude:

1. Constitutional and Administrative law.

2. Conveyancing.

3. Criminal law.

4. Family law.

5. Succession law, including wills, intestacy, probate and

administration.

6. Trust law.

7. Retail banking.

8. Registration of patents and trademarks.

9. Appearing or pleading in any court of justice in

Malaysia.

10. Appearing in any hearing before a quasi-judicial or

regulatory body, authority or tribunal in Malaysia.

By these provisions in limiting the practice areas, it is

brave to say that the foreign lawyer shall not have all the

rights as same as to be given to a Malaysian lawyer. This is

definitely to ensure and to protect the Malaysian lawyers and

legal firms from any inconveniences which may be caused by the

foreign lawyer as the amendment was only became into force

recently. There are even ring-fenced areas of work, such as

conveyancing and litigation, which are again, the permitted areas

where only Malaysian lawyers can practice in.

3.3 Renewal of the Licence and Practicing Certificate.

As far as the Malaysian legal service is concern, a licence

and a practicing certificate for a law firm operating in Malaysia

as well as the advocate and solicitor is very important and

crucial. Under Section 36(1) and 37 of the Legal Profession Act

1976 stipulates that an advocate and solicitor is only permitted

to practice if he is in possession of a valid practicing

certificate, failing which, he is deemed to be an ‘unauthorised

person’ under the Act. Such certificate also must be renewed

annually in pursuant to Section 29 of the Act.

Similarly for the foreign lawyer, the registration of a

foreign lawyer under the Act shall be in respect of a calendar

year and may be renewed annually subject to such conditions as

the Bar Council may specify15. The same requirement goes to the

foreign legal firm or partnership where this firm is subject to

renewal by Bar Council upon certain terms and conditions16.

This requirement for renewal of licence and practicing

certificate may as well be regarded as some kind of limitations

15 Malaysia. 1976. Legal Profession Act. Section 40J(6).16 Malaysia. 1976. Legal Profession Act. Section 40F(7) and 40G(6).

to the power and rights of the foreign lawyer and legal firm. If

there is necessary, the Bar Council may not granted such renewal,

or make the renewal to be subject upon certain conditions so that

the foreign lawyer and firm may not do anything in violating the

provisions under the Act and Rules as prescribed.

3.4 Suspension and Revocation of Licence.

In spite of having the licence or practicing certificate to

be renewed annually or upon certain period as specified by the

Bar Council, those two also may in any time being suspended or

revoked by the Bar Council even the period is yet to end. This is

also can be said as one of the safeguards which can control and

regulate the rights of the foreign lawyer and firm in practicing

in Malaysian legal service.

According to Section 40I of the Act, the Bar Council may, by

notice in writing, suspend or revoke the licence of the firm and

partnership granted under this Act if it satisfied that there is

sufficient reason for doing so. Similarly with the registration

of the foreign lawyer, the Bar Council also has the power to

suspend or revoke such registration if it satisfied that there is

reason to do so in accordance with Section 40K of the Act.

3.5 Power of Bar Council to Impose, Amend and Revoke Rules and

Conditions

This is provided under Section 40O of the Act, where with

the approval of the Attorney General, the Bar Council may have

power to make rules to provide for conditions, criteria which

related to the granting of licence as well as related to the

manner of practice of the foreign lawyer itself in Malaysia. The

Bar Council also may has the power to make an exemption of any

person or class of persons from any provision under the Act.

This provision can be said as the most important safeguard

and protection in admitting foreign lawyer and legal firm into

Malaysian legal practice. It generally gives the power to make,

amend and revoke any rules and conditions to the Bar Council upon

circumstances where it is suitable to do so. This flexibility of

imposing rules and conditions by the bar is proven to be

practically effective rather than the amendment of the Act by

Parliament in controlling the foreign lawyer from any action

which may threaten Malaysia in the future especially Malaysian

lawyer and legal firm.

4.0 PROBLEMS AND ISSUES

It is undeniable fact that after the amendment of the Act in

permitting the foreign lawyers and legal firms to practice in

Malaysian legal service, there will be several problems and

issues arise and remains unresolved. Although the amendment can

be said as very recent as to cause any problems yet, the issues

such as the opportunities of the job and legal services, the

language barrier between the counsel and counsel as well as

between the counsel and the client, the residence status of the

foreign lawyer in Malaysia, the academic and practical

qualification of theirs, as well as the challenges for the fresh

graduates should be taken into consideration by the government

since the early stage of implementation. These all possible

issues and problems will be discussed further in sub points

below.

4.1 Job Opportunities for Malaysian Lawyer

The economy in Malaysia is currently growing at a steady pace,

having transformed itself over the past 30 years from a producer of

raw materials to a vast, multi-industry economy. Generally, more than

half of the country's labour forces are based in the tertiary

sector, which also known as the services sector. This is includes

the legal fieldwork industry that offers their services to the

whole citizen of Malaysia in term of legal aspect.

The work experience and opportunities in Malaysia can

sometimes be difficult to find in the country. As far as the

opportunities are concerned, other than larger organizations and

firms, not all employers usually offer formal opportunities every

year. This resulted to lack of the opportunities even for the

local lawyers to find a suitable workplace, what more after the

amendment which permitted the foreign lawyers to practice in

Malaysia.

The competition between the local and foreign lawyers also

will become bigger especially in the field of legal consultant,

such as the legal advisor for bank and financial institution as

well as in-house lawyer in most of the corporate companies in

Malaysia. As the bigger corporates are usually tend to find the

foreign services rather than local due to its quality and

satisfaction, it will slowly close the door of opportunities for

the local lawyer to give their services for such institutions.

Moreover, it is the fact that not only the already- lawyers

who will feel this impact, the fresh graduates from the local

universities also might be affected together. The legal firms

which intend to expand their branches basically would like an

experienced lawyer to work with their firm as to establish their

goodwill and reputation better in the industrial competition.

Even before the admission of foreign lawyers is permitted, most

surveys had shown that the percentage of the jobless legal

graduates was increasing every year as the local lawyers seem to

be already enough17. Let us imagine as if the job opportunities

had been opened to the foreign lawyers, who mostly fulfill such

qualities demanded by such firms, it is likely that such fresh

17 Boo Su-Lyn. 1 january 2014. “Survey: Doctors, lawyers, engineers are Malaysia’s unhappiest workers”. The Malay Mail Online. http://www.themalaymailonline.com/.

graduates, who are vastly graduate from the universities until

now will fail in this competition and continue being jobless.

Even nowadays, the survey shows that most of the graduates

holding a bachelor in law are not working as a lawyer instead

they become a businessman, lecturer, or being admitted into other

fields which are not related to legal terms at all. If this

continues, it is not possible that the Malaysian aspiration for

year 2020 to enhance their local services and workers as well as

to reduce the jobless percentage among the graduates in Malaysia

will become far more to achieve.

4.2 Working Environment and Language Barrier.

Enough with the possibility of the foreign lawyers in

threatening the job opportunities of the local legal resources in

Malaysia, another problem which might be arises from this

amendment also includes the problem within the working

environment among the lawyer’s peers. As far as we concern, the

language that has been used in most Malaysian legal practice was

conducted in Bahasa Melayu.

Although the recent academic qualification that has been

announced by Malaysian Prime Minister requires the law graduates

to obtain Band 5 in Malaysia University’s English Test (MUET) in

order to be eligible to graduate, such requirements can be said

as only on the paper. The reality is that the lawyers would find

it easier to conduct their service in the ‘mother tongue’

language rather than in English18. Even in most of the court

proceedings in most states in Malaysia including the

documentation and litigation in court are more favorably

conducted in Bahasa.

Furthermore, the communication between the lawyers and their

clients also usually will be conducted in Bahasa as most of the

clients come from different background. Because of this

preference practice among the lawyers in Malaysia, not more than

what not, it will contribute to the language barrier’s problem

when the foreign lawyers come into Malaysia.

It is worthy to note that by the word ‘foreign lawyer’, it

does not specifically mean an English lawyer per se. They also

18 Sheridan Mahavera. 26 June 2014. “Job seekers with A in SPM English but can’t speak a word of it”. The Malaysian Insider. http://www.themalaysianinsider.com/.

can come from various countries which use various languages such

as Korea, China, or Africa and even them may not be fluent in

English when it comes to communication. Should this problem

occurs, the legal services of foreign lawyers may not be provided

smoothly either between them and court or between them and their

client. Hence, it will result to the ineffectiveness of the

practice and might eventually tarnish the reputation of the legal

practice in Malaysia.

4.3 The Residence Status of Foreign Lawyer in Malaysia.

Another issue that may occur by the recent amendment of

permitting the foreign lawyers also is pertaining to the

residence status of the foreign lawyer in Malaysia. As they

actually become an official labor in Malaysia, does the

government also provide that they can reside in Malaysia as long

as they want? How about their visas and other requirements needed

to reside in Malaysia for the purpose of working?

Under the 2014 Rules, there is one provision which provides

that a qualified foreign law firm shall ensure that the number of

foreign lawyers in their firm is resident in Malaysia for not

less than one hundred and eighty two days in any calendar year or

equivalent to 5 months19. While under Section 37(2B) of the Act

provides that the accumulated period of the foreign lawyer shall

not exceed sixty days in total in one calendar year as well as to

obtain immigration authorization for the stay, it seems that the

period was not sufficient for them to effectively and efficiently

practice in Malaysia, which is other than their own country.

As far as the status of legal service in Malaysia is

concern, it basically requires the lawyers to always take the

pitch and not only remain in their office. Therefore, this

insufficient period might eventually lead to some kind

dissatisfaction by the foreign lawyers. It is because the

residence status plays quite an important consideration for the

foreign lawyers to consider before they accept to any legal

service in Malaysia. As a lawyer who also can be regarded as a

businessman, it is common sense that they will demand for less

cost and more profit in their services. Yet because of this

19 Malaysia. 2014. Legal Profession Act 1976. Legal Profession (Licensing of International Partnership And Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules. Rule 4(2)(f).

issue, it seems that the cost of transportation, hotel and others

in Malaysia will then incur more cost in their services hence

will result to the escalation of their demanding legal service

fees to the citizen of Malaysia.

4.4 The Qualification of the Foreign Lawyer.

Like what has been mentioned in the introduction part above,

for a person to be admitted as an advocate and solicitor in

Malaysia, that person must strictly qualifies several terms and

conditions before he becomes the member of the bar. Among them, a

candidate must satisfy all requirements as are provided in the

Act which may be categorized as academic requirements, practical

requirements as well as formal requirements.

A foreign lawyer may easily pass the third requirement which

is formal requirement. Formal requirement basically refers to the

requirement provided under Part IVA of the Act such as

requirement to obtain licence, practicing certificate and others.

Nevertheless, for academic and practical requirements such as

requirement to take CLP examination as well as to attend

pupilage, these two have not been specifically described under

the Act for them to fulfill. When there is no such provision, it

will basically become an issue to the Malaysian legal service as

the local lawyer is required to fulfill all those requirements

successfully.

Apart from that, a foreign lawyer is a foreign person who

studies in a foreign country other than Malaysia. As we mentioned

earlier, different country will practices different kind of

practice. It would be a problem for a foreign lawyer who comes

from other than commonwealth countries such as US and Russia to

adapt with the Malaysian legal system. With the absence of the

provision regarding the academic and practical qualification of a

foreign lawyer, it seems that the Bar Council had become lenient

for admitting the foreign lawyer into Malaysian legal service yet

harder to the local citizen to become a lawyer. Even in some

local universities, the Board which established under the Bar

Council20 has yet to recognize their degree of Bachelor of Laws21.

20 Legal Profession Qualifying Board as provided under Section 4 of Legal Profession Act 1976.21 For example, Islamic Science University of Malaysia (USIM) and Sultan Zainal Abidin’s University (Unisza).

With this issue, is Malaysia can be considered as really stable

enough to accept foreign lawyer into the country?

5.0 OPPORTUNITIES AND ADVANTAGES

Despite of the possibility of the problems and issues that

may be arise in consequence of the amendment, we shall also look

into this admission on the positive side which we may receive if

the foreign lawyer is to be admitted into Malaysian legal

service. To determine whether the admission of the foreign lawyer

is a threat to Malaysia or not is a subjective matter. It is

based on what side we are looking for as such admission may have

both positive and negative impact towards Malaysia. Among the

advantages are as follows.

5.1 Competitiveness Spirit, Improvement and Knowledge Sharing.

In the concept of business administration, having fair

competition has been proven since a long time ago across the

globe as to be the most powerful method in enhancing the quality

services, financial, and demand of the consumers in certain

business. It is also similar if we apply this concept to the

other aspect of life. This is because, by having competition, a

person will basically struggle to improve himself so that he

would not be left behind others. The admission of foreign lawyers

into Malaysian legal practices can be seen as one of those fair

competitions. Being too comfortable in the name of local lawyer

seat eventually will lead to the recession and downfall of the

quality of the services provided by the local lawyer.

Apart from that, the local lawyer also can be benefited by

this admission in terms of knowledge sharing. Instead of by

looking that the foreign lawyers are more competent and

knowledgeable in certain aspects compared to the local lawyer, a

good lawyer would find this as an opportunity to them to share

the knowledge each other rather than blaming that the foreign

lawyers are taking their places in the industry. Under the

amendment, a qualified foreign legal firm can primarily only

advise on matters on foreign law but will have to employ at least

30% of Malaysian lawyers. This basically gives the chance to the

local lawyer to mix together and sharing their knowledge22.

A fresh graduate also can become more competitive in their

studies, so that when they come out of the universities later,

they will be confident enough to face the challenges as they are

being admitted into the real legal services. This competition

will then give a positive to Malaysia at whole. Even if the

graduate becomes a lecturer of law instead of being a lawyer

himself, he should be able to improve their teaching and learning

to their students and eventually prepares them with sufficient

and quality knowledge in competing with the foreign lawyers from

other countries.

5.2 Job Opportunities.

It is important to note that the recent amendment of the LPA

does not only qualify for a foreign lawyer to be admitted into

Malaysia, but also includes the admission and registration of

international partnership and qualified foreign law firm as well.

22 Lee Shih. 2013. “Enter the Foreign Law Firms”. Malaysian Bar’s Praxis. Kuala Lumpur. July-September Edition.

By inserting these provisions, it basically opens the

opportunities for job to the whole Malaysian when the firm

registered will reside its building in Malaysia.

From a partner to the legal assistant in the office, the

other Malaysian such as engineer and architect to build the

building office, the guard, the electrician and many more also

can take this opportunity for some job. This generally will

contribute to the income of the local citizen, and perhaps

inviting the foreign investment through the international trade

and subsequently increase the rate of Gross Domestic Product

(GDP) of Malaysia at whole.

5.3 Malaysia Development at International Level.

It is not to be forgotten about the recent international

issue which Malaysia has to face regarding the missing of MH370

as well as the shot plane of MH17 at the border of Ukraine. In

this situation, Malaysia is really in need of several capable

legal practitioners to handle this matter at international level

especially when it involves the international criminal. Not

enough with that, the issue of Pedra Branca’s island23 that has now

being taken by Singapore also had given enough frustration and

disappointment to all Malaysian.

Even in certain aspect of legislation such as law against

piracy offence, Malaysia seems yet to have a valid legislation to

try on this matter. Instead, when there is offence of piracy as

what has happened in the case of MT Bunga Laurel, the Attorney

General of Malaysia had to go extra mile to look for applicable

law, which in this case, armed robbery under the Penal Code to

try such offence24 due to the lack of statute.

This actually shows that the legal practitioners and

legislators in Malaysia now really need a vast and fast

improvement in terms of international law. The admission of

foreign lawyer might be some kind of help in this situation. By

this admission, Malaysia will actually develop its legal

department in handling the international issue to be more capable

and knowledgeable by the concept of sharing knowledge and

services.

23 Pedra Branca/Pulau Batu Puteh, Middle Rocks and South Ledge’s case (Malaysia v. Singapore). 2008.24 Abd Ghafur Hamid & Khin Maung Sein. 2011. Public International Law: A Practical Approach. Selangor. Sweet and Maxwell Asia. Third Edition. p. 284.

6.0 CONCLUSION

As a conclusion, the recent development and changes in the

Legal Profession Act 1976 had brought various kinds of views and

opinions. Some may say that the admission of foreign lawyer into

the Malaysian legal practice may bring harm more than the other,

and some may say vice versa. The amendment to gives chance for

foreign lawyer and legal firm to take place in Malaysia basically

has its own advantages and disadvantages.

Although it seems like such admission will likely to affect

the Malaysian lawyers, it is to believe that the government had

already taken enough measures in order to control the regulation.

The limitations and safeguards as discussed above are practically

very important to be inserted together into the amendment as to

gives power to the Bar Council to take action in case of

mispractice or violation of rules by the foreign lawyers and

firms.

Further, there was also mentioned about the problems and

issues which may arise in respect of the amendment. Although it

is still in the early stage as the amendment was only take force

this year, the government is hopefully can take this matter into

serious consideration as to cope with the future possible issues

and problems.

The balancing act to be struck is that of the government has

to liberalize the Malaysian legal market to allow for the entry

of foreign firms while at the same time also manage the careful

and precise plan as to give local firms more time to mature and

develop with the market. While on the other hand such

liberalization can promote healthy competition and bring in the

legal expertise, the impending liberalization also will be

expected to become gradual yet can be tailored to fit the

situation as the market evolves.

REFERENCES

1. Legal Profession Act 1976.

2. Legal Profession (Licensing of International Partnership And

Qualified Foreign Law Firms and Registration of Foreign

Lawyers) Rules 2014.

3. Abd Ghafur Hamid & Khin Maung Sein. 2011. Public International

Law: A Practical Approach. Selangor. Sweet and Maxwell Asia. Third

Edition

4. Lee Shih. 2013. “Enter the Foreign Law Firms”. Malaysian Bar’s

Praxis. Kuala Lumpur. July-September Edition.

5. Pedra Branca/Pulau Batu Puteh, Middle Rocks and South

Ledge’s case (Malaysia v. Singapore). 2008.

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