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The biggest challenge here differs between regions. In Hong Kong, 70% of respondents indicated implementing or updating relevant technology as the biggest challenge, while in Singapore, 82% pointed to training employees as the primary hurdle.
A recent global survey by Baker McKenzie, published in the Global Disputes Forecast 2025 report, highlights rising risks for businesses in Hong Kong and Singapore, focusing on cybersecurity, AI, and employment.
The report provides insights from 600 senior in-house lawyers globally, including 200 Asia-based respondents, revealing key challenges for HR and legal risks in the year ahead.
Cybersecurity & data privacy
Cybersecurity & data privacy have emerged as the leading dispute risks for businesses in both Hong Kong and Singapore, with more than half of Hong Kong respondents (52%) and 45% of those in Singapore identified these areas as critical investigation risks. Additionally, a significant gap between escalating cybersecurity threats and insurance coverage was noted, with 46% of Hong Kong and 42% of Singapore respondents raising concerns.
The biggest challenge in cybersecurity and data risk management differ between regions. In Hong Kong, 70% of respondents indicated implementing or updating relevant technology as the biggest challenge, while in Singapore, 82% pointed to training employees as the primary hurdle.
AI-driven risks
AI technology, while transformative, also introduces great risks. Businesses in Hong Kong are primarily concerned with ethical issues, such as the improper or undisclosed use of AI and its implications for data privacy and security. On the other hand, Singapore respondents worry about intellectual property (IP) infringement, including AI-generated outputs potentially infringing on third-party trademark.
Isabella Liu, Partner at Baker McKenzie, Hong Kong, commented: "AI regulation remains very much driven by jurisdictional nuances, including the patchwork of existing IP laws and the specific policies put in place or under consultation by regulators and legislators.
"Ultimately, court decisions are likely to look very different across jurisdictions, due to the nature of how local law views and/or defines the concepts of IP ownership, validity and infringement, and the specific nature and use of the AI tools at issue in each case."
In that vein, she affirmed the need for companies to remain savvy in monitoring AI developments across legal disciplines — not just IP-related case law and legislative developments but also existing privacy and sector-specific regulation, and emerging AI regulation —to develop a strategy for managing legal risk and maximising opportunities.
Employment disputes
AI and automated decision-making have been identified as key drivers of employment dispute risks for 74% of Hong Kong respondents. In Singapore, equal pay considerations were highlighted by 71% of respondents, reflecting heightened regulatory scrutiny of HR practices.
According to the report, increased scrutiny from regulators closely monitoring HR practices would mean that companies agreeing not to poach employees from other firms or engage in wage-fixing face significant financial and even criminal risks.
To this point, Celeste Ang, Principal, Singapore, Baker Mckenzie, highlighted the number of "relatively high-profile cases involving the enforcement of restrictive covenants in the Singapore Courts", all of which are garnering increased public interest.
"The Ministry of Manpower indicated in early 2024 that it was working with other tripartite partners to develop a set of guidelines to shape norms and provide guidance on the inclusion of restrictive clauses in employment contracts," she added. In line with this, the Ministry shared an update earlier this month noting that discussions are ongoing with tripartite partners – the National Trades Union Congress and the Singapore National Employers Federation – about how and when such clauses should be applied, in alignment with principles outlined by the Courts.
Apart from the issues stated above, workplace investigations into discrimination and harassment are also seen as another contentious area, with 64% of Hong Kong and 62% of Singapore respondents expressing concerns.
Ang shared: "We see a lot more investigations relating to discrimination, bullying, abuses of power and harassment. This is driven partly by changing legislation but also a shift in attitudes. There's more awareness of bad behavior, which is a positive step, and more companies are undertaking training to
ensure a safe and healthy work environment and mitigate risks."
[ALSO READ: Workplace Fairness Bill passed in Singapore's Parliament]
Dispute spending
As disputes risks show no signs of easing, 84% of Hong Kong and 87% of Singapore respondents expect their disputes spending to rise or remain the same in 2025. Inability to keep pace with regulatory developments has emerged as a significant barrier to litigation preparedness, highlighted by 58% and 59% of respondents in Hong Kong and Singapore, respectively.\
To this effect, Nandakumar Ponniya, Chair of Baker McKenzie's Asia Pacific Dispute Resolution Practice, pointed out that the fast-changing regulatory landscape requires continuous monitoring of and updates to organisations' compliance programmes, which he acknowledged "can be quite resource-intensive".
"Only external advisors with a clear understanding of their clients’ business imperatives, a strong track record of success, and the ability to foresee how the regulatory landscape will evolve in all the markets where clients operate will be able to help clients formulate the right strategy and be well-prepared to respond to potential risks," he elaborated.
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