KOTA KINABALU: Amendments passed by Parliament to the Advocates Ordinance (Sabah) Act 2021 will allow foreign legal firms to operate in the Federal Territory of Labuan, but not in Sabah for the time being.

       Sabah Law Society president Roger Chin said the amendment to Section 23 of the Act that was passed on Thursday (Oct 28) was to allow for provisions on liberalisation of the legal practice to be brought into force in Sabah and Labuan on different dates.

       "This is to cater for the possible need to allow foreign lawyers into Labuan to help realise the Malaysian government's objective of turning (the Federal Territory) into an offshore financial centre," he said in a statement on Friday (Oct 29).

       As such, he said, with the protection given to Sabah lawyers under the Federal Constitution, dealing with foreign lawyers in Sabah would only come into effect on a date to be appointed after Sabah passes an enactment in its legislative assembly when it is ready to liberalise its legal services.

       He explained that the provision of Section 23 was already inserted under the Advocates Ordinance (Sabah) (Amendment) Act 2016 on the liberalisation of the legal practice in Sabah, in line with amendments made to the Legal Profession Act 1976 (which only applies to Peninsular Malaysia).

       This was in line with World Trade Organisation requirements as specified under the General Agreement of Trade and Services and the Asean Framework Agreement on Services, he said, adding that the Federal Government was committed to the liberalisation of legal services.

       The Legal Profession Act 1976 was amended and came into force on June 23, 2014 to introduce provisions to provide for the liberalisation of legal practice in Malaysia with the aim of developing the country as an international Islamic hub and to expand the work, expertise and specialisation of the legal profession in Malaysia, he added.

       However, he said, since the Legal Profession Act 1976 did not apply to Sabah, similar provisions needed to be introduced into the ordinance governing Sabah so as to give effect to Malaysia's liberalisation obligations.

       "Liberalisation would only allow foreign firms to practise in Sabah in permitted areas as determined by SLS through international partnerships, qualified foreign firms or registered foreign lawyers working in local firms," he said.

       He added that these foreign lawyers and firms would be subject to certain conditions and restrictions that included licensing by SLS as recommended by a selection committee co-chaired by the Sabah Attorney General and SLS president.

       "This will not infringe upon domestic practice as it is only 'foreign law' that such firms will be allowed to practise," he said, adding that SLS would always look out for the best interests of the Sabah Bar.

       "(SLS) only takes positions which solidify the stand of allowing only residents of Sabah and those with clear Sabah connections as defined in the Ordinance to practice in the state," he added.