Legal advice with a business approach
Tay & Partners does not only provide sound legal advice; it also has an understanding of the business climate that foreign investors need and are adept in helping FDIs navigate regulatory challenges during leaner economic times. Tay & Partners is often considered to be a "young firm" amongst the established law firms in Malaysia. It first opened its doors to Malaysia about 20 years ago and since then it has become known for its services that combines solid legal expertise with a business-oriented approach. The firm has a friendly team of more than 30 lawyers. Although this is fewer than some larger Malaysian firms that have up to 100 lawyers, Managing Partner, Tay Beng Chai says his leaner team is more attuned to transactional work and can provide first class legal service and responsiveness that in-house counsels and investment banks look for.
Younger firms get a better deal
In the Malaysian market corporations are increasingly becoming accustomed to using law firms that have established themselves in the last two decades for high-profile deals, says Tay. He gave the example of his firm's work for Asia's leading agribusiness group, Wilmar International, which was headed by partner Chang Hong Yun, in its acquisition of Malaysian listed PPB Oil Palms. The deal worth US$3.7bn was the first major cross-border takeover involving two publicly-listed groups in Singapore and Malaysia, according to Tay. Another example he gave was a 25% stake acquisition (US$238m) in Affin Holdings Berhad by The Bank of East Asia. Tay says the client was pleased that it was permitted by the regulators to acquire the 25% stake despite the usual 20% single shareholding limit in Malaysian banks.
More than just legal advice
When asked why large corporations are choosing Tay & Partners, Tay points to the firm's approach to legal services. He says that in the midst of the global economic turmoil investors are now, more than ever, looking for legal counsel that offers an insight into the market. "We see ourselves as business lawyers, providing business solutions from a legal perspective," he said. The firm's corporate department offers a wide range of corporate and commercial law services with banking and finance, mergers and acquisitions, debt and equity capital market, project financing, joint ventures, investments and real estate being its main focus. "Our lawyers in this department are adept at advising and helping clients navigate FDI and other regulatory issues," said Tay.
Malaysian markets turning for the better?
Tay says that real estate funds and investors are anticipating more attractive pricing for investment properties and projects. He believes that tumbling share prices will in turn bring more acquisition activities into Malaysia, providing firms with a steadier flow of work. "Private equity and the big corporations in Malaysian market will bounce back. The presently tough economic times actually yield opportunities for M&A transactions. Although the financial, banking and manufacturing sectors are slow, we are seeing a lot of logistics work in distribution and port management," he said.
Islamic capital markets work is also growing says Ronald Tan, head of debt capital markets. "This year several notable foreign issuers have issued Ringgit-denominated Islamic bonds known as Sukuks, he says, "to tap liquidity which is otherwise unavailable in their home markets due to the global credit crunch". Tan believes that Islamic instruments, generally regarded as being more conservative since they require asset-backing, will have be considered more attractive during slow investment periods, particularly for derivative-type instruments. "If our mandates are a reflection of the trend, we are confident that despite economic headwinds, the Islamic capital market will be healthy and continue to grow," he said.