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N e ws l e t t e r Issue 2: December 2018
Editors’ Foreword Dear Members, We hope that you will enjoy this month’s newsletter, specially made for this holiday season! Here is an overview of each month’s newsletter comprising legal ‘tidbits’ and ‘features’. Legal tidbits are short snippets of legal news, structured to give you an overview of the issue, including any legislative changes and concerns that may impact the legal community in Singapore. This month’s issue includes the recent Goods and Services Tax (Amendment) Bill affecting prices of overseas digital subscriptions, Singapore’s first ever cryptocurrency trial and changes to the Employment Act. We hope that these updates aid in keeping you abreast of various news happenings in Singapore while studying in the UK. Our features section includes an interview, exclusively for this month’s Christmas edition. In light of the current internship application season, Tay Jia Yi from SYNC has provided some insight on Commercial Awareness, which is definitely a topic on the minds of many of us currently. We hope her perspective will be informative. The Editorial Team wishes all our readers a happy holiday and sincerely thank all those who have contributed to this month’s issue. If there is any feedback regarding our content or interest in writing for our next newsletter, please do not hesitate to contact us at editorial@ukslss.com. We look forward to hearing from you. Merry Christmas! With warmest regards, The UKSLSS Newsletter Editorial Committee 2018/2019 Edwin Teong (Editor-In-Chief) Shermaine Lim (Managing Editor) Ronald Lee (Deputy Editor) Kimberley Ng (Design Director)
Legal Tidbits
Say Goodbye to Netflix? By: Lee Jian Qing, Ronald, University of Bristol
What is happening?
Why is it happening?
The Goods and Services Tax (Amendment) Bill that was passed in Parliament may lead to an increase in prices of monthly subscriptions for overseas digital services such as Netflix and Spotify. The Bill enables the relevant public bodies (Inland Revenue Authority) to collect Goods and Service Tax (GST) on overseas services from 2020 onwards.
The Government has implemented the Bill in a bid to protect local business and enhance their ability to compete with overseas vendors which traditionally may have more extensive resources. Moreover, the tax is expected to generate $90 million per year.
For business-to-consumer services, including video streaming platforms, mobile applications on virtual marketplaces (Google Play or the Apple Store), listing fees on electronic marketplaces, software and online subscription fees; an overseas vendor registration system will be imposed.
Besides the possibility that the author of this article would probably have to cancel his Netflix subscription, there have been concerns regarding the implications that this Bill will have on lower income groups. The GST tax on digital services could mean that exposure to the digital world will be less affordable for the less financially fortunate, depriving digital services that serve as more accessible substitutes for physical services such as online learning platforms and entertainment. This raises the issue of widening the digital divide and impeding digital literacy.
The registration system would obligate overseas vendors to pay GST if they have an annual global turnover above $1 million and generate a profit that is more than $100,000 in providing digital services to Singapore. Business-to-business imported services (marketing, IT and management services) will fall under a “reverse charge system�. This will mean that local GST-registered businesses will collect GST for services that they import, rather than service-providers which was originally the case.
Concerns?
Legal Tidbits
Bitcoin Trial – A first for SG By: Shermaine Lim, University of Birmingham
Cryptocurrencies – An example of which is Bitcoin, which has been on the rise in Singapore in recent years. These currencies are often not linked to any particular country, nor regulated by any central monetary authority, and are traded for other similar virtual currencies on various platforms. Even though cryptocurrency is not regarded as legal tender in Singapore, the government has displayed interest and is eager to encourage blockchain businesses. The Trial This very first Bitcoin trial in Singapore was held by B2C2 of London suing Quione of Tokyo at the Singapore International Commercial Court (B2C2 Ltd v Quoine Pte Ltd [2017] SGHC(I) 11). B2C2 acts as an 24/7 liquidity provider and market maker, which buys and sells assets at a certain price. On the other hand, Quoine is a financial technology provider, and acts as a platform for trading, exchanging and other financial services. Both companies are currently in dispute for a violation of terms and conditions. B2C2 is accusing Quoine of reversing seven “too risky” trades by B2C2 customers, while Quoine claims that a software glitch caused the reversal, resulting in proceeds being deducted without B2C2’s authorisation.
Instead of having to bear the costs of the risky trades, B2C2 contends that Quoine chose to reverse the trades as an easy and advantageous way to mitigate the associated risks, and would not have to suffer great monetary losses if customers refused or were unable to pay for the trades. Thus, B2C2 argues that Quoine had acted in breach of trust as its role as the operator of the platform, and Quoine had no right to undo the “irreversible” trades. Defending its actions, the reversal was made by Quoine as the platform was unable to access accurate price data at the material time. Quoine claims that a risk disclosure statement in their business contract allows the platform to cancel transactions “based on aberrant value”, especially since the orders placed by B2C2 were about 250 times higher than the average price. With fluctuating Bitcoin prices , this proves to be a complex situation since the value of bitcoins have changed since the period of alleged wrongful trades. The accused “reversed” trades were made in April 2017, with the value of a bitcoin worth around $1,200 at that time. With that rate and today’s dollar price, the damages claimed are estimated around $13 million instead. Moving On? In light of this case, it is hoped that there will be greater clarification unravelling towards such matters concerning questionable trading practices. While the trial has yet to reach a full conclusion, this would surely set a precedent for future cases to come.
Legal Tidbits
Revamped Employment Act By: Kimberley Ng, University of Bristol
In line with a shift towards greater employee protection in Singapore in the past few years, revisions to the Employment Act (’EA’) will see significant changes after Parliament passed major amendments to include all private-sector employees. There are four central threads to the reform, with a broader scope of employees covered. Part IV updates to the Act will expand the scope of employment laws in Singapore to more workers, to provide extra protection to rank-and-file workers and promote greater flexibility for employers. Furthermore, the Act will introduce a framework for resolving employee-employer disputes. What’s new and who’s covered 1. Broader scope of employees covered – A significant change to the EA is the removal of the $4,500 salary cap per month for professionals, managers, executives (PMEs). With the change, an additional 430,000 PMEs will be covered by the law and entitled to core statutory provisions under the Act such as paid annual leave entitlement of at least seven - 14 days. 2. Part IV benefits – A major change in the expanded law sets out extra protection for rank-and-file workers in areas such as working hours, mandatory rest days and overtime pay. The monthly salary cap of non-workmen has been increased to $2,600, which is a $100 increase in salary threshold. The wage cap for calculating overtime pay will also be raised to $2,600. It is estimated that an additional 100,000 non-workmen will benefit from this amendment.
3. Greater flexibility for employers and employees – The reform promotes flexibility for both employers and employees in providing time off-in-lieu for all employees who have worked on public holidays. Furthermore, employers can make salary deductions from employees if they obtain written consent from employees, and enable them to withdraw their consent any time without incurring penalty. 4. Resolving employment disputes – The Bill empowers the Employment Claims Tribunals (ECT) as the “one-stop” service to resolve employment disputes, taking on wrongful dismissal claims in addition to salary-related claims. The reform allows M&Es to seek redress for wrongful dismissal if they have served the employer for at least six months instead of the current 12 months period. Impact of changes In light of these changes, potential issues and concerns have been raised as profit margins need to be managed against the rising costs in today’s global business economy. As such, employers and employees alike, require ample time to adjust to the changes. Furthermore, employment regulations could cause setbacks in developing human capital, and raises concerns about the lack of outlets for employers wrongly accused of breaches to seek redress. Whether such issues pose to be onerous remains to be seen. The amendments read in the legislation will take effect on 1 April 2019, and will extend to all employees, except public servants, domestic workers and seafarers who will continue to be covered by other Acts and regulations due to their nature of work.
Conversation With
Tay Jia Yi Jia Yi is currently a real estate development lead project manager. Prior to this, she has amassed 6 years of working experience with magic circle firm, Linklaters LLP, acting in several large mergers and acquisitions deals. Before Linklaters, Jia Yi has worked at Drew & Napier, Lee & Lee and Allen & Overy. In this interview, she provides some insight on commercial awareness, career advice and points to note for BREXIT.
On Commercial Awareness How would you define commercial awareness? I think there’s a tendency to overcomplicate what commercial awareness means. I recall being nervous about whether I had enough of “it” when I was a student –when you are actually working, you realise it’s not as scary as it seems. It’s simply understanding the business world generally, and also the industry your clients work in. How can law students develop their understanding of commercial awareness? Take part in business competitions, read the business news, attend courses or talks, and discuss businesses with friends or fellow students. There’s no excuse not to learn about businesses and startups, especially as there’s a lot of focus on it in many universities these days. Maybe even try starting your own! Open your mind outside of law and have the right attitude and willingness to learn – that’s more important than actually knowing the finance or business world very well. What can law students do to improve their interpersonal skills such as negotiation and communication skills with clients? Think beyond academics and participate in activities in university and in the ‘outside world’. Pursue any interest you have, take on part-time jobs, and see where it takes you – you can develop a lot of skills by expanding your world view.
The most impressive vacation scheme students I met while I was at Linklaters were those who had more going on in their lives than their studies, whether it was travelling, baking, drawing, or just going out and being comfortable meeting new people. What are some potential impacts of Brexit on the law or Singaporean students hoping to pursue a career in the UK? In your opinion, will there be any significant changes/reforms? The impact of Brexit on law is obvious – we are watching a real life constitutional crisis unfold in front of our eyes. For Singaporean students in particular, the most frequent question I get is, does the uncertainty mean I should go back to Singapore? The short answer is, no one really knows how Brexit will play out. No one knows how Singapore could be affected by recent developments in the region either. I would decide whether to pursue a career in UK based on personal factors (e.g. your desire to live abroad, your family or personal circumstances) – the macro stuff will happen as they are meant to. Focus on what matters to you and you will make the right decision.
What are the biggest issues facing the legal industry in recent years? One issue which has been around for many years but has really come to the fore more recently is the gender issue. Law firms seem to be unable to retain senior female lawyers despite innovative initiatives being rolled out across different firms (e.g. agile working, part-time roles) – don’t get me wrong, this applies to many industries, but I think it is something that will keep being an issue, especially with many law firms reporting on their gender pay gap (which by the way, makes for enlightening reading!).
Commercial awareness is undoubtedly important for any practising lawyer since it features having commercial sense. How do lawyers utilise this skill in their work? It permeates every aspect of a lawyer’s work, from when you take instructions from a client and give them advice, to prioritising issues for negotiation. Put simply, it’s the lens through which a lawyer would view his or her work. It also comes across in other ways – for example, when developing relationships with clients or working on business development. On applying for Vacation Schemes
What are some significant factors that have affected the developments of the legal industry in recent years?
What are some of the generic advice you would give to aspiring Singaporean students applying for Vacation Schemes in the UK?
I am fascinated by two key developments in the legal industry: (i) the rise of the ‘contracting lawyer’ and (ii) legal tech. Contracting is an innovative way for many people to work, giving these lawyers flexibility to pursue other interests in between legal projects. It’s very much on trend with the gig economy so it’ll be interesting to see whether even more lawyers choose this path. Many legal tech startups are trying to disrupt how lawyers approach their work. Being able to apply smarter technology especially to repetitive work can only be a good thing in my view. I am keen to see the first legal tech unicorn appear, although the legal industry poses quite a specific set of challenges compared to other industries.
My top three tips are: (i) tailor your application to the firm you are applying for, (ii) meet people who are already where you want to get to (contact SYNC for our mentoring programme – hello@sync.org.uk); and (iii) take the opportunity while you are searching to explore different career paths so you can properly assess whether law is the right profession for you.
How would possessing commercial awareness be advantageous to a law student? It’s probably one of the key skills law firms look for when hiring. Aside from getting a job as a commercial lawyer, it makes sense to be commercially savvy for other reasons – you will probably need this skill whichever career path you end up choosing.
On her career thus far If you were to start your career again, would you have chosen the same career path? Why? Yes, being a lawyer is an excellent foundation – it was a childhood dream of mine to become a lawyer and looking back, all the skills I learned (e.g. negotiation, precision) have been transferable in business. I also learned a lot from working in a firm like Linklaters - it was very inspiring to be surrounded by so many high-achieving people and be pushed to up your game daily.
Event Highlights
Kindling New Beginnings By: Edwin Teong, University of Bristol
On the 14th of November, the UKSLSS, in conjunction with the Overseas Singaporean Unit (‘OSU’), hosted Professor Walter Woon, Dean of the Singapore Institute of Legal Education (‘SILE’) and former Attorney-General (2008-2010) at the High Commission of Singapore in London. The event was also attended by the High Commissioner of Singapore to London, Ms Foo Chi Hsia. It is worth noting that Ms Foo was a former student of Professor Woon. The event was also the society’s first event it was organising for the year. The fireside chat comprised an opening address by Koh Chengjun, President of the UKSLSS, followed by that of Ms Foo Chi Hsia and Professor Woon. Subsequently, there was a Question and Answer (‘Q & A’) session spanning about 40 minutes and a dinner reception. In his opening address, Chengjun contextualised the event by raising recent developments in the legal profession, including the proposed changes in 2023 pertaining to more stringent bar exams and extension of practice training period to a year. He also outlined the UKSLSS events for the year, this being the first of them.
Professor Woon discussed the general performance of students in the Part A Bar Exams, with particular emphasis on Criminal and Company Law, which motivated his visit to the universities in the United Kingdom and the fireside chat. The Company Law examination features problem questions based on real case facts. Also, unlike university exams, there is no choice of questions. The main issue with poor performance in Company Law, a paper which Professor Woon sets and marks, is the supply of ‘erudition’ not ‘solutions’. Students who did badly tended to answer problem questions without answering the question i.e giving verbose answers on the law or providing solutions without concluding what the available options are, and what the client is strongly recommended to do in his situation.
In the Q & A session that followed, Professor Woon answered queries from the students on a range of issues. This including opportunities in the legal industry, the review of the Overseas Scheduled Universities (OSUs) and how students should adapt to the new challenges of the profession. For those who were unable to air their queries during the Q & A session, they were able to catch Professor Woon during the dinner reception. The event was fully subscribed to by a variety of universities, including universities outside of London, such as University of Bristol, Cambridge, Oxford, Birmingham and Nottingham. While attendees from London universities included University College London, King’s College London, London School of Economics and Queen Mary University of London. The general consensus was the event was useful in three ways. Firstly, it served as a touchpoint with Professor Woon and the Overseas Singapore Unit, in line with the society’s aim of bridging UKSLSS members with the legal profession. Secondly, it allowed Professor Woon to address certain misconceptions and provide more information regarding the Part A examinations. Lastly, and on a less serious note, it allowed members to have a taste of home, with dishes such as the Hainanese Chicken Rice and Traditional Nyonya Spring Rolls available on the widespread buffet. This was made possible courtesy of Brenda from the OSU, and the UKSLSS is immensely grateful and wishes to thank her team’s efforts in organising this event.
Event Highlights
VacScheme Helpdesk 2018 By: Lee Jian Qing, Ronald, University of Bristol
The annual VacScheme Helpdesk was held on the 24th of November at King’s College London, organised in conjunction with the Singapore Young Professionals Network Community (SYNC). Panel Discussion This event aims to provide insight based on the personal experiences of lawyers who are working in London. There were various topics discussed, namely on how to tackle the application process for vacation schemes while also shedding light on the work and social culture within the law firms in the UK. It was heartening to hear the honest and candid perspectives offered by the panelists. Their advice on overcoming challenges within the legal industry revealed that there are definitely opportunities for Singaporeans to pursue a career in the UK despite Brexit.
Both Johnny Lim and Qamarul Jailani provided a unique perspective on training in Singapore before eventually switching to work in the UK, highlighting the opportunity for Singapore-trained lawyers to move to the UK if they wish to do so in the future. While Clara Yeo gave pertinent advice on applying to UK law firms. She cited the following tips: 1. Be specific and give concrete examples when writing your application. For instance, if you mention teamwork, focus on what you have achieved and how you helped the group to become better. 2. Work experience does not have to be exclusively law-related, all work experiences can be relevant. Try to bring out the transferable skills that come from working in different industries. 3. Apply early as some firms recruit on a rolling basis (assess applications as they come in before the deadline has passed) 4. Match yourself with the firm - research the firm thoroughly and go for open days. This will not only improve the quality of your application, but also allow you to ascertain whether the firm culture suits you.
Ho Ray Shio further added on to this: 1. During open days/insight sessions, capitalize on these opportunities to find out more about what kind of questions will be asked during the interview i.e strength-based/competency. 2. Find out more on what the assessment day of each firm entails and the qualities that they are looking out for. 3. Be selective about how many applications you make as doing too many applications may affect your academic work while also diluting the quality of your applications. These pointers were especially helpful for the many first year law students in attendance at the event, providing exposure on what to expect and look out for at firm events. Networking The panel discussion was succeeded by an informal networking session with not only the panelists, but other trainees and associates. The trainees and panelists kindly provided informal CV checks and tailored advice on how to improve them. They also gladly entertained individual questions that the attendees might have. All the panelists and trainees were very willing to share their experiences and were enthusiastic in offering their help. Overall many attendees gave positive feedback on the event. They appreciated the balanced lawyer/trainee to student ratio, which provided an ample opportunity for meaningful conversations to be held. While also being able to connect on a more personal and informal level.
Call for UKSL SS Newsletter Writers The UKSLSS editorial team is providing the unique opportunity to be involved in our monthly newsletter. We are looking for 3-4 volunteers to be our resident writers. You will be involved in the two main sections of “legal tidbits” and “features”. Please note that consistent time commitment will be required for newsletter writers. You can expect a 30 minute meeting every week to plan content and delegate responsibilities, besides spending some of your own time writing.This is an exclusive chance to network with various alumnus in the industry as well as expanding your knowledge on current events both in the UK and Singapore. In your contributions, your name and institution of study will also be acknowledged. Those who are interested, please email us at editorial@ukslss.com by 9th January 2019 stating your full name, institution of study, year of study and reasons for application. We look forward to hearing from you soon!