The Singapore start-up community has entered an exciting era marked by rapid adoption of newness, fresh technology disruptions, and vibrant entrepreneurship ecosystem.
As public and private sectors actively foster a collaborative environment among the relevant stakeholders, local start-up scene thrives. While entrepreneurship injects disruptions into our traditional ways of living, the legal system defines, establishes and enforces healthy boundaries for embracing change and enacting social innovation.
Mrs Arfat Selvam, iGlobe’s earliest supporter and advisor in legal processes, has been a proponent of innovation and positive changes. Since the enactment of Singapore’s Industrialisation Programme in the 1960s, Mrs Selvam has embarked on the journey of a corporate lawyer.
Singapore SG50 also marks her 45th year contributing to the regional financial services market. She recalled the excitement in her early years being at the vanguard of the industry. She saw through major transactions such as DBS Bank’s acquisition of POSB, the merger of Keppel Bank with OCBC, and the IPOs of Singapore Airlines, Neptune Orient Lines and Creative Technology.
We interviewed Mrs. Selvam for her views on how lawmakers have partnered entrepreneurs to create a robust start-up ecosystem.
How do you see legal ecosystem evolving with the entrepreneurship ecosystem?
Mrs. Selvam: An entrepreneur is a person who sets up a business and takes on greater financial risks in doing so. Over the years, the law has evolved to remove financial barriers for entrepreneurs in starting up a business.
There has also been more sources of funding. Bank loans used to be the only financing option, but today a wider array of financing sources are available. And these match the risk profiles of companies across spectrum. Greater level of activity in funding from PE/ VC funds means high-risk startups can receive better financial support in their ventures. VC-backed companies receive not only financial but also strategic assistance ranging from domain expertise to business contacts, to network and branding.
The law is now more forgiving to the risk-taking entrepreneurs. While entrepreneurs were faced with stigma as they underwent bankruptcy previously, risk-taking entrepreneurs can now have their names removed from the bankruptcy record after 7 years if they are first-timers. A new Insolvency Act will soon be passed to consolidate and update the bankruptcy laws relating to individuals and corporations.
Start-up owners also have more choices in the vehicle used to carry on their businesses. While it used to be restricted to only limited liability company, we now see various platforms like limited liability partnerships. These choices give entrepreneurs flexibility in planning for best option for tax purposes.
Change, like anything, is a process. All processes must have components that anchor them in place. What have anchored you and your life in dealing with changes over the past few years?
Mrs. Selvam: Leadership lies at the heart of it. Leaders need to have the positive mindset to embrace change, first and foremost. Then they have to inject that mindset into the general body of employees. Employees who see the urgency for change will be compelled to take part in the process of change. It’s therefore important that leaders clarify the rationale for change and the benefits resulting from the change.
Personally, this mindset has anchored me over the years. As I understand that change is inevitable, I embrace it and move forward.
About Selvam LLC
Selvam LLC is a corporate and financial services law firm specialising in mergers and acquisitions, takeovers, corporate finance, banking and securities, corporate real estate restructures, financial services, international joint ventures and Islamic finance. Selvam LLC and international law firm Duane Morris have formed the Singapore-based enhanced joint venture Duane Morris & Selvam LLP to provide a strong platform to service clients throughout the region.