Sunday, August 27, 2006

Barriers of entry to legal profession lowered

It's been in the news, for the last few years, that the number of lawyers in Singapore is in a gradual but steady decline. The attrition rate is high and the supply is not sufficient given the rising demand here. So the government has accepted the key recommendations of The Third Committee on the Supply of Lawyers, but that understandably has raised some concerns in some circles. The legal profession is still very much protected, as compared to say IT, accouting or engineering, so the introduction of (potential global) competition is perhaps a little too much to digest at one go. But perhaps it is not as sudden as one would have imagined. The signing of various FTAs already signalled that the barriers of entry for some professions were being lowered as Singapore began to recognize their qualifications. These professions included medicine and law.

The issue of falling pay is a concern, but it might not be all bad. As Mr Wang observes, the high salary is offset by the long working hours, which led to a high attrition rate. We all know the law of dimishing returns, up to a point the additional income does not offer you any more utility and you'll rather take a break instead. With the rising supply of lawyers, it is more probable that a work-life balance can be achieved. Besides, the aim of making Singapore a international legal services hub means that the fat in the system must be trimmed so that we can be globally competitive, and the first step is to allow global competition into the local arena.

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