Senior lawyer Jeff Leong, speaking at a webinar on the pandemic’s impact on foreign investment in Asia, said lockdowns have resulted in the loss of business, which has led to disputes between investors and host countries, and questions on whether to “mediate or litigate”.

Leong also described insolvencies and corporate rescues as other key issues keeping lawyers across the region busy.

“These are issues on the ground that are very real, and we have no solutions,” said Leong, who is the co-chair of the corporate, securities & investment law committee of the Law Association for Asia and the Pacific.

“In Malaysia, we have the construction industry that was severely affected by the pandemic, and has suffered heavy losses.

“If the industry players go under, there is a domino effect on the suppliers, developers and others linked to the industry’s eco-system. So insolvency and corporate rescues are all issues that we need to look into.”

In his blog, Leong had previously highlighted how the emergence of the Covid-19 crisis in early 2020 made it “immediately apparent” that contracts were disrupted without any party being at fault.

He also stressed that the far-reaching impact and consequences of the pandemic and lockdowns were beyond the expectations and imagination of business, contractual parties and governments.

The webinar also saw lawyers from China, Indonesia, Vietnam and Thailand talk about the impact of Covid-19 on FDI in their respective countries, as well as the challenges and opportunities which have now presented itself to potential investors.

Lawasia is a regional association of lawyers, judges, jurists and legal organisations which advocates the interests and highlights the concerns of the Asia Pacific legal profession.