As the world grapples with two hot wars, trade conflicts, tit-for-tat international sanctions and cyber-threats, lawyers and in-house counsel in Asia discuss the risks that are directly impacting them and their strategies for success and survival

Witnessing the hostile geopolitics and conflict prevalent on any international news provider, it seems we have rarely lived in more divided times – and yet we have never been more closely interconnected, from economies to trade and right down to personal communications in the blink of an eye across borders and cultures.

War and conflict are flaring, and their product of human destruction in the Middle East and Eastern Europe is alarming. But even far from the war zones, nations are paying dearly as the fallout manifests on everything from free trade to energy supplies.

Regional neighbours are divided on borders and sovereignty issues, while human neighbours and even families are divided by politics – observe the US elections.

Information has never flowed so quickly and freely – or with more inaccuracy and manipulation at the hands of formless digital players who would benefit from hacking and scamming. Nefarious entities seek to digitally influence political power struggles, and cyberterrorism and cybersecurity are everyday concerns.

The dawn of artificial intelligence (AI) has brought with it enormous potential for solving problems that have plagued us for centuries in the fields of medicine, science, economics and human endeavour. It also brings its own peculiar threats for error and monumental misjudgement.

In this environment, enterprises must learn, adapt and stay agile; laws and regulations must keep up; and law firms and in-house counsel must provide the guidance necessary to achieve success for clients and companies in the shifting sands.

Beware of overreaction

Geopolitical tensions like those between China and the US, mainly over trade, have altered the business environment, show little sign of improving, with a possible risk of quick deterioration. But political and corporate risk experts warn companies operating in Asia against “emotionally driven” responses.

“Some companies have responded to geopolitical tensions, pressure from governments and a deeply uncertain policy outlook by decoupling from China,” says Steve Vickers, chief executive officer of Steve Vickers and Associates, a Hong Kong-based specialist political and corporate risk consultancy. “However, many now find that ill-considered decoupling has amounted merely to jumping from the frying pan into the fire.”

He cites an example of how a Japanese technology company, which thought it might have been at risk even though it wasn’t, rushed to shift its business from China to Southeast Asia without adequate due diligence on the new destination first.

“They got themselves into a lot of trouble in Malaysia, facing issues arising from a bad partner who was financially unsound and not properly backed by the government as it was previously thought to be – it was a real shambles,” says Vickers.

He says it is crucial to act decisively, which may include a corporate restructuring exercise to distance a business from a particular state, and to partner with or operate through neutral entities. But he argues that it is equally crucial that companies identify concerns, undertake an independent appraisal of the risks, report in full, and then implement essential mitigating measures.

And the general counsel should play a key role. “Boards should require detailed background investigations, and ensure that oversight is in the hands of a neutral party, such as the general counsel – and certainly not under the control of a local team with political or other agendas detrimental to the company,” says Vickers.

The political and corporate risk expert adds that, in particular, general counsel might lead on internal strategic appraisals in order to help boards gain a firm understanding of the threats and vulnerabilities at play. “Often it’s not the what but the why that matters,” he advises.

Asia Business Law Journal spoke to lawyers and in-house counsel around the region and asked about their risk concerns – geopolitical, internal or external – and their strategies for dealing with them.

Singapore

As a major commercial and financial hub in Asia, Singapore has long been heavily reliant on global trade and inbound direct investment to drive its economy.

In terms of trade, mainland China is Singapore’s biggest partner followed by the US, Malaysia and the EU. With these close trade and investment ties, companies in Singapore are struggling to comply with regulatory changes arising from geopolitical tensions, as well as global conflicts like the Russia-Ukraine war and the Israeli-Palestinian conflict.

“Trade sanctions are one of our top concerns,” says a senior in-house legal counsel of a multinational technology company in electrification and automation based in Singapore, and part of the country’s management team. She tells Asia Business Law Journal that sanctions triggered by the Russia-Ukraine war, along with ongoing trade disputes between the US and China, have affected market access and complicated supply chain operations for her company.

“As a result, a lot more effort needs to be done in terms of third-party due diligence, as well as risk assessment and identifying mitigation actions both as general measures, such as tightening trade sanction clauses, and project-specific measures,” she says.

Regulatory changes in cybersecurity and data protection in markets such as China, Vietnam and Indonesia are also key challenges facing her company. Such regulatory changes have been impacting not only its operations in those markets, but also compliance costs and market entry strategies.

In September this year, the Vietnamese government issued the first draft of a new law on personal data protection, tentatively set to take effect on 1 January 2026. Under the draft law, companies would be required to set up a data protection department for

processing basic and sensitive data, and to obtain definite consent from data subjects for the cross-border transfer of data, particularly sensitive information including health records and political views.

In the same month, China’s State Council issued the regulation on network data security management, which is set to take effect on 1 January 2025, with a focus on further regulating high-risk data processing activities, including M&A transactions and cross-border transfers. Among the new rules is the requirement imposed on providers of personal information to external parties to sign data processing agreements setting out the processing purpose, method, scope and security protection obligations.

While the covid-19 pandemic triggered a major overhaul of her company’s crisis plan, the evolving challenges relating to sanctions, cybersecurity and data protection have made it necessary for the business to update and strengthen its crisis plan regularly.

From a legal perspective there has been quite a shift in her company’s focus on prioritising contractual risk areas. This has involved equipping the business with various option clauses that address raw material price changes caused by factors including supply chain disruptions, the invocation of force majeure and hardship clauses, and trade sanctions. A more balanced suspension and termination clause has also become a critical negotiation point.

“Following the global ESG [environmental, social and governance] regulatory trends, we have updated our contract risk assessment to include sanctions, environmental risks and human rights, as well as enhancing the anti-bribery and corruption risk assessment,” she says.

Michael Peer, a Singapore-based partner and managing director in the risk advisory practice of global consulting firm AlixPartners, observes an ever-increasing compliance burden on general counsel and their companies throughout the supply chain.

Commenting on the situation in Singapore and the wider region, Peer points to how, in the case of the production of equipment meant for civilian use but that may also have a military use, such as drones, thorough due diligence on users is a must to avoid getting into trouble for any abuse of sanctions by supplying them the equipment.

“You have got to start thinking about whether the people you are selling it to are legitimate customers, and whether they are using it for what you intended it to be used for,” says Peer.

Japan

Due to a saturated domestic market, Japanese companies have been ramping up their overseas investment in recent years, but are highly concerned about growing geopolitical and external risks including cyberattacks and protectionist measures by individual countries and trade blocs, according to PwC Japan Group.

In July this year, the group conducted a survey on corporate responses to geopolitical risks with 400 people in managerial positions working for companies with annual sales of JPY10 billion (USD66 million) or more that are developing business overseas. Of those surveyed, 40% pointed to cyberattacks by foreign entities as their biggest concern, while 19% said they were most worried about protectionist measures including the EU’s investigation into China’s electric vehicles and US steel and aluminium tariffs.

Takayuki Kitajima, general counsel and chief executive officer of Visionaria Integritas Plus in Tokyo, says that the general counsel or chief legal officers of Japanese multinational corporations should identify risks and create action plans to counter or leverage such risks, and diversify supply chains and regions to reduce dependence on specific risks.

Kitajima, who previously served as general counsel and representative director of Unilever Japan and legal director of Johnson & Johnson Japan, warns that geopolitical risks are susceptible to changes in political relations and economic sanction trade policies, especially in M&A and other cross-border transactions.

“Particularly with regard to M&A, political perspectives or changes in government may effectively restrict acquisitions from companies in other countries and negotiating the content of non-disclosure agreements, letters of intent and acquisition agreements in M&A,” he says.

Due to factors including a saturated domestic market, Japanese companies have in recent years been active in acquiring assets overseas, particularly in the US and Europe, to grow their business.

With the US being the prime destination for Japanese multinationals, most of which also have operations or investments in different parts of Asia, including China and Russia, the burden of complying with US sanction laws has become increasingly heavy, says a senior in-house counsel in charge of security trade control at a Japanese multinational trading company in Tokyo.

“Originally, our work was to comply with Japan’s security trade control [export control regulations], but under the recent geopolitical trends it has become important for us to comply with sanction laws, especially US sanction laws.”

The senior in-house counsel explains that, traditionally, tasks in his legal department have consisted of preparing draft contracts and negotiations, and dealing with dispute-related issues. But to deal with sanction-related issues, the legal department now has to gather intelligence and analyse it, as well as prepare corporate policies to respond to such matters.

As a non-US corporate entity, his company is not subject to primary sanctions unless its transactions have a certain US nexus, such as when US banks are involved. But he points to severe impacts on his company’s business operations if secondary sanctions are imposed on it or, in other words, it becomes a sanctioned party.

Secondary sanctions are applied to individuals and entities that are neither US citizens nor targets of primary sanctions, and are imposed with the purpose of penalising engagement with the primary target, according to the Centre for Economic Policy Research in Washington.

“As a matter of risk management, we are trying to identify sanctioned parties like specially designated nationals in our network as soon as possible, and manage the secondary sanctions risk,” says the senior in-house counsel.

Such worries have also led the company to take recent action to update its due diligence checklist used by the entire company, covering all major legal risks, as well as create training for its businesspeople so they can understand what those risks are.

China

Just as their counterparts are doing in other key Asian economies, Chinese enterprises engaging in cross-border business have been grappling with the increasingly heavy burden of complying with sanctions imposed on Russia by different countries.

Leslie Zhang Weihua, vice president and chief legal officer of Hong Kong-listed energy company United Energy Group in Beijing, says his company does not trade in crude oil and related products from Russia due to the impact of the sanctions.

“Our company has implemented strict controls on Russian sanctions and related supply chain risks,” says Zhang. “For example, in our KYC [know your customer] of trading partners, we pay close attention to whether they trade in Russian crude oil.”

Besides monitoring the activities of its trading partners, Zhang’s company also requests statements and guarantees from the trading partners saying that they are not involved in Russia-related business.

Under ongoing China-US and China-EU trade tensions, general counsel of Chinese companies have also been occupied with handling issues ranging from the tightening of national security reviews of Chinese-led overseas investments to the imposition of anti-subsidy policies or duties on Chinese imports.

United Energy Group’s Zhang points to instances where some Chinese companies have been investigated or rejected by Canadian and US authorities when acquiring key mineral resources overseas, despite the target assets being located outside Canada and the US.

“In particular, when we carry out overseas M&A or projects in the field of new energy, we need to pay special attention to anti-subsidy policies of the project’s location to avoid being investigated at a later stage, or legal risks,” says Zhang.

Tariff and control measures imposed by the US and the EU on new-energy products, including electric vehicles, from China have hindered the development and overseas expansion of new intelligent and connected vehicle business, says Glory Guan Zhengrong, legal expert at luxury electric vehicle developer and manufacturer Lotus Technology in Shanghai.

In September this year, the US government raised the tariff rate imposed on Chinese electric vehicles to 100%, while duties on other strategically important Chinese products such as steel and solar energy equipment have also gone up sharply. The European Commission in late October announced it would levy tariffs of up to 35.3% tariffs (on top of the existing 10% duty) on Chinese-made electric vehicles.

In counteracting problems arising from US and EU tariff hikes, Guan’s company has conducted in-depth research on rules of origin, under the US section 301 investigations and the Canada-United States-Mexico Agreement, to find out the feasibility of third-country manufacturing, or producing goods in a country outside China and exporting them to the US and elsewhere.

With the US-China trade friction and other geopolitical risks causing disruption to import and export business activities, Eric Xie Chenyang, vice president and chief legal officer at communication network equipment development company Foxconn Industrial Internet in Shenzhen, stresses the need for Chinese companies to reduce such supply-chain risks by developing alternative suppliers and raw material sources.

Hong Kong

Philip Wong, managing partner at Gallant, points out that Hong Kong has long been recognised and remains as one of the leading world-class financial centres. But he also notes that this special economic status makes the city especially vulnerable amid the current US-China trade friction.

“Due to the continuing and intensifying US-China geopolitical tension, Hong Kong has been involuntarily drawn to this unfortunate tug of war,” he observes. “In recent years, we have seen a significant drop in foreign investment to China, whose foreign direct investment has plunged 31.5% year on year to RMB580.19 billion (USD81.48 billion) during January to August 2024.

“Hong Kong, being caught in the middle of these two major powers, is feeling the impact, given Hong Kong’s open economy without any capital flow restrictions, which is reflected in the fall in price in the property market as well as the stock market in Hong Kong.”

Kat Kukreja, president of the Association of Corporate Counsel (ACC) Hong Kong and a legal consultant at Lawyers on Demand, says general counsel in Hong Kong are also affected by the US-China trade tensions.

“In Hong Kong, in-house counsel face several areas of work that may be significantly impacted by geopolitical or external risks. These risks primarily stem from Hong Kong’s unique position as a global financial hub under China’s sovereignty,” says Kukreja.

“Geopolitical tensions, particularly between the US and China, have led to stricter export controls, sanctions, and tariffs.

“In-house counsel in APAC usually have a broad remit and are familiar with the need to monitor international regulatory changes. In addition to sector-specific regulations, counsel now also need to understand and manage the risk of non-compliance with foreign sanctions (e.g., US sanctions targeting Chinese operations), and navigate the complexities of cross-border data transfers and financial transactions,” she says.

Other general counsel in Hong Kong also emphasise the impact of sanctions. “The risks of complication and frequency of sanctions imposed by the US, EU and UK are growing,” says a general counsel who asked not to be named.

“Sanctions compliance work is most impacted by geopolitical risks. To some extent, navigating the risks of expanding into new markets with different regulatory and business requirements impacts on my work.”

He says in-house legal counsel in Hong Kong should play a bigger role in advising and being informed of business decisions so that legal, regulatory and other considerations can be made on a timely basis.

Even amid the current difficulties and risks, Wong sees a bright future for Hong Kong. “Despite the challenges, Hong Kong remains a vibrant global economic and financial city,” he says.

“While many international companies are considering their supply chain risk diversifications, this creates new opportunities for Hong Kong to connect, not only with its traditional trading partners, but also opens up new gates for Hong Kong to connect with countries in the Asean region, Middle East, Africa and South America.”

Wong says it may take time for the business volume between China and the Asean region and other countries to match past China-US trade levels, but points out that “the new trade pattern between China and other new countries will be opening up totally new blue-ocean business opportunities to many companies in Hong Kong and abroad”.

Vietnam

Vietnam’s exposure to geopolitical and external risks presents challenges for businesses operating in the country, yet its strategic position in Southeast Asia also makes it a key player in the global investment landscape. “While the M&A landscape has slowed … it has also seen new activity, with foreign investors viewing Vietnam as a strategic location for shifting or supplementing production,” says Le Minh Phieu, managing partner at LMP Lawyers.

Phieu points to the strains between China and the West, in particular the US, as a major geopolitical risk affecting Vietnam. “Investors in China are increasingly concerned about potential economic repercussions — such as heightened tariffs, stricter business regulations, or even broader economic conflict — which could directly impact their operations and exportation,” says Phieu.

Nguyen Dang Viet, a partner at Bizconsult Law Firm, notes concerns in China’s territorial claim in the South China Sea. “China’s expansion of their claim over the South China Sea … causes effects over the oil and gas exploration of the national oil and gas corporations, and their joint ventures with foreign partners,” she says.

The Russia-Ukraine conflict is another worry for businesses operating in Vietnam. As Nguyen Tieu My, a corporate specialist at Miura & Partners explains, “Both Russia and Ukraine are traditional and important trading partners of Vietnam in the Eurasian region. Although Vietnam’s exports to the Russian and Ukrainian markets are not large in volume, they are spread to the Eurasian Economic Union market, an area with which Vietnam has signed a free-trade agreement.

“Therefore, disruptions in the supply chain will affect other related markets, [like] payment transactions with businesses. Many Vietnamese export enterprises have had their orders suspended, their supply of raw materials disrupted, and their payment methods delayed.”

The agricultural sector has been particularly affected, with skyrocketing fertiliser prices due to supply disruptions from Russia, a leading global producer. “The shortage of supply from Russia and Ukraine increased the price of raw materials for production globally,” says Nguyen Tieu My.

Beyond agriculture, the conflict has disrupted the supply of key materials for electronics production. “Russia and Ukraine are two major suppliers of nickel, neon, krypton, aluminium and palladium — important materials for the production of raw materials that make up electronic devices,” she says.

Geopolitical risks facing Vietnam have wide-ranging implications for legal advisory work, especially in areas such as M&A, compliance and risk management. Phieu says his firm is handling more disputes related to supply chain disruptions, contractual breaches, and conflicts triggered by the war in Ukraine.

Nguyen Dang Viet highlights the specific challenges in the oil and gas sector as “M&A, particularly joint venture transactions in oil and gas exploration and exploitation, [and] limitation in our licensing advisory services for new investment and incorporation from Chinese companies”.

Phieu says businesses responding to geopolitical risks need to adopt a proactive and diversified approach. “Companies should diversify their production bases, client portfolios and business segments to build resilience in the face of geopolitical shifts. At the same time, contracts should be meticulously negotiated and drafted to account for unexpected disruptions.”

Nguyen Tieu My advises clients to keep a close eye on global economic trends. “From an economic perspective, investors need to pay close attention to oil prices, inflation and the actions of the State Bank of Vietnam to have effective capital mobilisation and/or planning … Maximising resources at minimal cost is one of the strategies worth considering,” she says.

South Korea

As geopolitical risks increase, global economic recovery is hindered. South Korea, a major trading nation that ranked seventh in cumulative export value for the first half of this year, is no exception.

The nation has long been surrounded by four major powers — the US, China, Russia and Japan — and has consequently been subject to significant geopolitical influences. Being a longtime ally of the US while also neighbouring China places the Land of the Morning Calm in a unique position.

“The key risks that concern our operations include supply chain disruptions due to geopolitical tensions, such as the ongoing US-China trade conflict,” says Jaehwan Lee, general counsel at MUSINSA, an online fashion platform in the country.

He says disruptions caused by regional tensions or trade disputes require his team to frequently reassess supplier reliability, renegotiate contracts, and secure alternative sources to maintain business continuity.

“We emphasise supplier diversification and contingency planning to mitigate supply chain risks, regularly evaluating our supplier network and maintaining backup options to minimise our dependence on any single source or region,” says Jaehwan Lee, who is also president of the Korea In-house Counsel Association.

Junsang Lee, managing partner at Yoon & Yang, observes, “US sanctions against China and Russia directly impact South Korean companies. For example, as the US nurtures its semiconductor industry while imposing restrictions on China, major domestic semiconductor corporations are significantly affected.

“Additionally, companies exporting goods to Russia are prohibited from exporting regulated items. In such cases, South Korean companies strive to find alternative investment destinations, or to increase exports to other regions by relocating production bases, or diversifying investment locations,” says Junsang Lee.

He says the M&A sector is primarily affected when investments in specific regions are restricted, leading to a fall in the number of related transactions.

For items not prohibited by sanctions, exports and other activities are still possible. In such cases, there is an increased legal demand for compliance work to establish systems for preemptively checking items or processes within the company. Furthermore, customs work related to checking the origin or export of prohibited items is also affected.

“We advise our clients to conduct preliminary research and analysis to determine the permissibility of economic activities before engaging in them,” says Junsang Lee. “We also recommend continuous monitoring during economic activities to address any potential risks that may arise. If any problematic situations occur, we suggest having a team or organisation in place to respond swiftly.”

Another area of risk that Jaehwan Lee points to is cyber-threats, often exacerbated by geopolitical tensions. “Cybersecurity is another critical focus area, given the sensitivity of the data we handle,” he says. MUSINSA invests heavily in advanced cybersecurity infrastructure, conducts regular penetration testing, and has established a dedicated response team to handle potential breaches or cyber-threats.

“As regulations around data privacy, cybersecurity and trade become more stringent, adopting a proactive rather than reactive approach to compliance will be essential,” says Jaehwan Lee. “This means staying ahead of regulatory changes, engaging more closely with regulators, and continuously enhancing our compliance infrastructure.”

India

Cybersecurity vulnerabilities, political instability, civil unrest and conflict, regulatory and legal ambiguity, and uncertainty and delays in legal outcomes are some of the primary risk concerns for Indian companies. A general counsel from the finance industry, who asks not to be named, says these elements “have an impact on external stakeholders, the demand for products and services, which then exacerbates concerns related to company operations”.

According to MN Nasser Kabir, group general counsel at TV Today Network Limited India, “changes in government policy can directly influence operational costs, market access and business strategies, especially in heavily regulated sectors … [which] necessitate agile legal strategies to protect the company’s interests”.

Safeguarding the company’s interests and operations becomes even more crucial in the face of a crisis. According to general counsel we questioned, crisis situations are unavoidable in an environment
where uncertainty is prevalent. Hence, the finance industry GC notes that “addressing crises is equally an integral part of risk management, as is the ability to respond swiftly to crises”.

To address this, Kabir’s strategy is to ensure that the company’s key people are not only involved but also aware, as he says effective crisis management includes “stakeholder mapping, i.e., to identify key stakeholders and their roles during a crisis”.

This approach, however, is not without its own issues. A consequence is “curtailment of and caution in business activity, which in turn has an impact on economic and business activity overall”, says the finance industry GC, who adds that it means general counsel and their teams must stay vigilant.

For this purpose, “checkpoints” have been identified by Kabir – proactive monitoring, risk assessment and prioritisation, crisis management planning, and collaboration and communication.

These checkpoints can be further refined. For example, Kabir, active in the media industry, categorises the following issues as high priority: defamation issues, misinformation and fake news, violent threats against journalists, and political pressure and censorship.

The finance industry GC, however, says cybersecurity is the highest-priority risk, followed by regulatory changes and uncertainty, noting that “global financial service providers strategise footprints across geographies, particularly in the context of capability centres for technology and operations delivery”.

This makes it clear that compliance burden is another key element in risk mitigation. The GC adds: “With the evolving needs of clients and markets, [and] evolving regulations, law and government policy, the process of addressing evolving and new risks is a constant”.

It is no surprise, then, that Kabir opts for a year-round mechanism to be in place for effective mitigation and management of risks and crises. “We should create more agile business processes as well as crisis response plans that can be quickly adapted to emerging risks.” Such plans require teams to not only be prepared for the known issues, but also have several contingency strategies in place for the unknown.

Indonesia

Eva Armila Djauhari, co-managing partner at Armila & Rako, draws attention to maritime risks. “The Natuna Islands, located near these waters [the South China Sea], have been a hotspot for rising tensions between Indonesia and China, especially over fishing rights. This raises the risk of maritime disputes or military clashes, which could affect sea logistics and trading activities for businesses,” says Djauhari.

“Many companies I advise are dependent on imports and exports, especially in manufacturing and commodities. With the current global situation, their operations could be affected by trade tensions, sanctions, or disruptions in maritime trade routes, particularly in the Strait of Malacca and the South China Sea,” she adds.

To help her clients navigate these challenges, Djauhari recommends strategies such as risk diversification and strengthening of legal and compliance frameworks. “Companies should diversify their supply chains and markets to reduce dependence on any country, particularly in sectors vulnerable to global trade tensions,” says Djauhari.

“Regional diversification within Indonesia is also worth considering, given its size and geographic diversity, to mitigate localised disruptions.”

As for legal and compliance frameworks, Djauhari notes: “Foreign [companies] should work closely with local legal experts to ensure they meet Indonesian legal requirements, particularly in areas like environmental law, labour law, and foreign investment regulations.”

A director and general counsel at a private luxury transportation company in Jakarta notes maritime border disputes at home and, from a wider perspective, war zones in Europe and the Middle East as risks being monitored by counsel, “especially when we need to handle clients to destinations around these areas”.

“Certainly, operations [may] have a direct impact, but eventually it will hit the financial situation,” says the director. On classifying potential risks, the director notes, “[We do] not specifically classify them to clusters, but we are following situations on a regular basis. We are keeping at least three scenarios if risks eventually happening. One of them is to set up our base in a foreign territory.”

The Philippines

Geopolitical tensions, cybersecurity vulnerabilities, counterfeiting and online infringements, and corruption tied to illegal gaming operations are all risk issues that in-house counsel have identified as putting businesses in the Philippines on alert.

Despite the risks, Editha Hechanova, managing partner at Hechanova Group in Manila, observes that the “business community appears to remain hopeful”.

A significant geopolitical risk identified by Hechanova is an ongoing territorial dispute in the West Philippine Sea. China’s refusal to recognise a Philippine exclusive economic zone — despite a 2016 ruling in favour of the Philippines by the Permanent Court of Arbitration in The Hague, the UN-appointed tribunal that adjudicates in international disputes over maritime territory — continues to simmer and affect political relations between the two countries.

Beyond territorial disputes, Hechanova highlights cybersecurity and a recent data breach in September targeting the Philippine Health Insurance Corporation, exposing sensitive personal information of thousands of employees.

“The breach has shaken confidence in the country’s cybersecurity readiness and prompted calls for stricter protocols,” she says. In her firm’s advisory work, Hechanova observes that “clients whose products have built some goodwill internationally have been targeted by online infringers whose identity is difficult to obtain from registrars … and the local police is grappling with the issue of jurisdiction”.

She says that for the firm’s IP clients, counterfeiting and online infringement are the main concerns. “The advancement of technology makes it easy to duplicate packaging, copy websites and gain access to trade secrets.”

When advising corporate clients, Hechanova Group focuses on mitigating risks related to IP infringements and online counterfeiting. For foreign businesses operating in the Philippines, protecting IP assets has become a priority.

The firm recommends clients file trademark applications and conduct regular monitoring of potential infringements. Hechanova also advises registering investments with the Bangko Sentral ng Pilipinas and establishing foreign currency deposit accounts for emergency withdrawals if geopolitical situations worsen.

An in-house counsel at a major beverage company, who prefers not to be named, takes a practical approach to risk management, emphasising prevention over reaction. While the company does not formally structure its risk classifications, the company implements basic high, moderate or low assessments based on the potential operational impacts of various threats. “Risks without workarounds, or potentially operations-disruptive, are typically deemed as high risk,” the counsel explains.

The beverage company prioritises monitoring legislative developments to gain early warnings of emerging risks. “Connections in the legislative branch of government are also leveraged to gain an advanced view of risks over the horizon,” says the counsel. He adds that the ability to share best practices with other top companies in the Philippines has been beneficial.

Thailand

Piyanuj (Lui) Ratprasatporn, a partner at Watson Farley & Williams’ Bangkok office, says investment policies from other countries, especially in Southeast Asia, can pose risks when attracting international investors with more incentives and privileges.

“Various authorised government agencies have been working together to promote investment by creating new investment projects eligible for investment promotions and relaxing unnecessary regulatory requirements. Projects that qualify can acquire land to build their project despite not being Thais,” says Ratprasatporn.

“Since Thailand is one of the biggest exporters of consumer and agricultural products, boycotts of, or increases in tariffs on, Thai goods would have a significant impact,” she says.

“With current global conflicts giving rise to de facto trade and tariff wars, sanctions regimes and similar, Thai companies we have advised are concerned about higher tariffs, additional restrictions and/or more requirements on exporting to countries they have market share in.

“Given this, they may have to review their business plans to establish new business in countries not subject to any sanctions or other penalties.”

Ratprasatporn says M&A and advice on regulatory compliance are the two major areas of her practice that are most affected by geopolitical or external risks. “Both current and potential foreign investors need to take into account the possibility that large economies may impose higher tariffs on Thai imports,” she says.

“Domestically, I have to keep abreast of any new policies that may be implemented by Thailand that impact previous agreements, and how that might impact previous advice given to clients.”

Naiyachon Tathong, managing partner at JTJB International Lawyers, observes that compliance, government regulation, business processes and financial affairs are the areas most affected by geopolitical and external risks.

“We always check with the current regulation, including providing an update on any new policy that may be changed, and also providing the timeline for client consideration,” says Tathong. “Additionally, if the client’s business plan may be affected by geopolitical or external risks, if we have information, we will provide it to the client for their consideration.”

Anuwat Ngamprasertkul, founding partner at IAS Advisory, says Thailand faces issues from regional tensions in the South China Sea, instability in neighbouring Myanmar, and domestic political upheaval rooted in internal divisions and rivalries.

Thailand is impacted by trade tensions between China and the US, which affects security, trade and other dynamics. The country’s economic reliance on exports, foreign investment and tourism heightens its vulnerability. Other risks include uncontrolled and unregulated advances in AI.

“Businesses are asking about accountability and for legal assistance with AI integration; certain large language models and other technologies carry a substantial degree of risk in terms of how and when they can be used,” says Ngamprasertkul.

To address geopolitical and external risks, he recommends conducting regular risk assessments; investing in intelligence to stay informed about current and emerging risks; preparing and maintaining robust and up-to-date crisis management plans; engaging with industry groups, policymakers and regulators; and building strong local partnerships.

“Promote collaboration and form alliances with local businesses and community organisations,” says Ngamprasertkul. “This can help foster co-operation and facilitate compliance with local regulations during emergencies. This strategy may also involve investing in CSR [corporate social responsibility] initiatives. A good reputation in the local community can help protect against adverse reactions in times of crisis.”