Keynote Address by Senior Minister of State, Ministry of Law and Ministry of Transport, Murali Pillai SC at the Turnaround Management Association APAC Regional Conference
Honourable Justices
Distinguished Guests
Ladies and Gentlemen
A. Introduction
1. A very good morning to you. To all attendees who took the trouble to join us from overseas, I would like to add my welcome to you too.
2. It is my honour to deliver the Opening Keynote address on this second day of the inaugural Turnaround Management Association (TMA) APAC Regional Conference.
3. We are delighted that Singapore is hosting the inaugural edition of this event for the TMA’s growing network in Asia.
4. I understand that this conference is focused on the theme of a Global Economy, the Growing Importance of Asia and Singapore as a Global Restructuring Hub, and I believe that this theme is a fitting one. It highlights Asia’s rapidly growing relevance in the current global landscape. Mr Patrick Lee yesterday touched on this topic during his Opening Keynote address.
5. This theme also serves as a useful foundation for my Keynote Address. I will be making two broad points –
a. One, I will be focusing on the current global economic and market outlook; and against this backdrop;
b. Two, the opportunities and benefits for us to move towards a pan-Asian restructuring and insolvency (R&I) ecosystem, and what I consider to be the key building blocks. And they are, if I could set it out upfront, a strong R&I legal framework, a robust infrastructure for dispute resolution, and harmonisation and communication between jurisdictions.
B. Global Outlook and Economic Trends and Opportunities in Asia
Global Outlook
6. As you all are aware, the present global economic outlook is shrouded in uncertainty. Top-line concerns include:
7. The global trade has experienced disruption from economic and geopolitical developments.
a. Free trade is being impacted as some countries move towards taking economic measures to rebalance their external trade and reshore their business activities. The US’s tariffs this year on its trading partners, for goods imported into the US is one example, and the uncertainty of how these tariffs will be implemented. This has led to even more uncertainty in the market in general, and will have a trickle-down effect on global economic growth.
b. Meanwhile, geopolitical conflicts have also directly affected global trade and supply chains. For example, the Russia-Ukraine war has impacted trade in food and energy, as both countries are major exporters of agricultural commodities and fossil fuels.
8. Next, changing population demographics are a potential disruptor to economic growth.
a. Many countries face the challenge of a shrinking workforce, brought about by ageing populations and decreased fertility rates – and Singapore is one of them. In order to maintain economic growth, economies have to find ways to innovate and boost productivity, or face stagnation.
b. The changing population demographics also changes consumption patterns, such as an increase in demand for health-related goods and services. These changes drive the transformation of businesses and economies.
9. Third, the quieter – but no less impactful – forces of climate change.
a. The persistent rise in temperatures has resulted in increased floods, heatwaves, and other natural disasters.
b. According to the World Bank, by 2050, the damage due to climate change could reach US$38 trillion, or about 28% of the projected global GDP.
c. I believe that, globally, everybody broadly acknowledges the severity of climate change. Where we differ, are our mixed responses to it.
d. There are countries who have committed to the green transition – including China, the world’s largest energy producer and consumer.
e. There are also countries who have taken a more reserved stance. For example, the International Maritime Organisation has proposed a “Net-Zero Framework” to cut greenhouse gas emissions in the global shipping industry – this is something that I am involved in, wearing my hat as the Senior Minister of State for Transport. This proposal was recently rejected by the USA, as the measure would increase costs for its citizens, energy providers and shipping companies, among others. So there is this tussle between what I call green realists, and green aspirants. And I think we really need to find a balance between these two tensions.
Trends in Asia and the Turnaround Industry
10. Zooming in now to Asia – despite the challenging global economic outlook, and a landscape that is being disrupted and reshaped, Asia continues to lead the world in economic growth.
11. According to figures by the International Monetary Fund (“IMF”), Asia contributed over 60% of global growth in 2024.
12. The data shows that recent global developments, have had an impact on the economic growth of the Asia-Pacific region. For example, some of the steepest trade tariffs that the US has imposed recently, have been on countries in Asia. At the same time, trade tensions between the USA and China have escalated.
13. The IMF has projected that growth in the Asia-Pacific region will slow to 3.9% in 2025, down from 4.6% last year, and closer to Singapore, growth in ASEAN will slow to 4.1% in 2025, down from 4.8% last year.
14. However, these figures still remain significantly above IMF’s projected global growth rate of 2.8% in 2025, and continue to be bright spots in the global economy.
15. Notably, Asia’s largest economy, China, has demonstrated its resilience and exceeded forecasts by growing 5.3% in the first half of 2025 despite the ongoing trade tensions and the slump in its property sector.
The strength of Asian economies
16. The continued strength and resilience of Asian economies is not an accident, but the result of decades of growth in integration, trade and foreign investments.
17. Asian economies have been making big strides towards greater integration and cooperation in trade for many years. Intra-regional trade in Asia has increased by 43% over the past four decades. More than half of Asian trade today is regional. ASEAN and China have been each other’s largest trading partners since 2020. In 2024, ASEAN’s trade with China grew by approximately 15% to approximately US$968 billion.
18. There is a strong commitment to free trade in the region. Notable free trade agreements which Asia-Pacific countries are members of are:
a. The Regional Comprehensive Economic Partnership (“RCEP”), the world’s largest free trade agreement entered between ASEAN and 5 Asia Pacific countries and which comprises 30% of the world’s total GDP and population; and
b. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”), which comprises 12 countries worldwide, including Singapore and three other ASEAN countries.
19. Multinational trade frameworks such as RCEP and CPTPP are important in helping to lower trade barriers and improve market access, and are examples of how there are many opportunities for countries to work together even when there is contestation, tariffs and competition.
20. But they have to find a solution, and I guess these frameworks would help Asian countries also remain as a hotspot for foreign direct investments (“FDI”).
a. In 2024, developing economies of Asia attracted about US$605 billion in FDI. This was approximately 40% of the total global FDI, and 70% of FDI flowing into developing economies. So that is quite substantial.
b. There has also been a rapid inflow of foreign investment into ASEAN. In 2023, FDI inflows reached another historical level of US$230 billion, despite an overall decline in global FDI flows. The USA was the largest investor in ASEAN, contributing US$74.4 billion. The European Union and China were the second and third largest sources of FDI for ASEAN, contributing US$24.9 billion and US$17.3 billion respectively. Overall, extra-ASEAN flows increased by 6.3% to reach US$208 billion.
Opportunities in Asia
21. With these factors, I am confident that regardless of today’s global economic outlook, Asia, including ASEAN, continues to offer many market opportunities.
22. For instance, ASEAN is one of the world’s fastest growing regions and has continued to demonstrate its tremendous growth potential.
a. There are estimates projecting that ASEAN‘s GDP will grow to US$4.5 trillion by as early as 2030, which will make ASEAN the world’s fourth largest economy.
b. Now let me just pause here. Sometimes when you get hit with figures in billions and trillions, we may not be able to make some sense of it. So, I remember listening to Rory Stewart’s podcast and he mentioned, if you were to convert a trillion dollars to say, a trillion seconds, that means if you were to go back a trillion seconds from today, you would go back to 30,000 years BC. I thought, you know, I should mention it so that we have a sense of perspective as to what these tremendous sums of money mean.
c. ASEAN has a combined population of around 700 million people, comprising of a young, educated and increasingly digital population, as well as a growing middle class. The World Economic Forum estimates that the value of ASEAN’s digital economy may increase to almost US$1 trillion in 2030 from US$300 billion in 2024.
23. ASEAN member states have also continued to commit to greater economic integration.
a. In May 2025, at the 25th ASEAN Economic Community Council (AECC) Meeting, ASEAN member states endorsed the ASEAN Economic Community Strategic Plan for the years 2026 to 2030, and reaffirmed their commitment to open, rules-based trade, and also focused on deeper regional economic integration, region-to-region partnerships, as well as digital transformation and sustainable growth.
24. Asia is also host to 18 of the 20 fastest-growing business corridors, and 13 of the 20 largest business corridors.
a. These include the green corridors in the renewable energy and sustainability space within Asia, especially in the electric vehicle (“EVs”) industry.
b. For instance, the Vietnamese EV market is growing significantly. A report by Mordor Intelligence values the Vietnamese EV market at US$3.12 billion in 2025 and is set to grow at a compound annual growth rate of over 18%.
c. There are also forecasts that Vietnam’s lithium-ion battery market will grow at a compound annual growth rate of 10.1% between 2025 and 2033, driven by rising demand for EVs and clean energy.
25. Businesses in the region can tap on these integrated networks,
a. By leveraging on the established supply chains, talent, expertise, and technologies,
b. To expand their markets, pivot to new and developing sectors and capture new opportunities.
Increased activity in Asian restructuring markets
26. Importantly businesses must be prepared to re-innovate and pivot towards these new opportunities. I am happy to observe this trend in the turnaround and restructuring industry.
27. In the Turnaround and Restructuring survey conducted by AlixPartners in April and May this year, the sentiment was that Asian restructuring markets are poised for significant activity in 2025.
28. I summarise some of the survey’s key findings:
a. 62% of respondents in Asia anticipated a rise in out-of-court restructurings, as companies seek alternatives to formal insolvency proceedings.
b. 64% of respondents also forecasted an increase in distressed M&A transactions.
c. 92% of professionals in Asia believed that geopolitical disruptions will drive turnaround activity and lead to an increase in distressed situations.
d. The commercial real estate, and financial services, sectors in Asia were viewed as the most likely to face significant distress in 2025. These were followed by the industries that are most affected by uncertainty in trade tariffs. They are retail, manufacturing and automotives.
e. Geographically, 33% of respondents believed that Greater China is expected to see the most restructuring activity in the next 12 months. Singapore and Japan followed, in a tie.
f. The survey also found that there is very much a sense of optimism in Asian markets against the backdrop of global market volatility and uncertainty.
i. 81% of respondents forecasted continued economic growth in Asia in the next 12 months.
ii. 60% of respondents believed that there will be an increase in capital availability, up from 49% in the previous year’s survey.
iii. As a sign of the times that we live in, AI was also increasingly seen as valuable and potentially critical for distressed businesses to survive, by driving efficiency and innovation.
29. Many distressed businesses in Asia would find themselves at a turning point now.
a. On the one hand, they face the uncertainty in the global economic landscape.
b. On the other, they have the opportunity to ride on continued growth in Asia.
30. This scenario is a prime opportunity for the turnaround industry, to partner with distressed businesses, and to catalyse these businesses’ restructuring and transformation.
C. Impact and Importance of a robust restructuring regime
31. I now turn to how the turnaround industry can partner with businesses to seize such opportunities.
32. It is widely recognised that a strong R&I framework is critical to support businesses as they navigate growth phases and economic downturn cycles. This allows resources to be recycled and reallocated efficiently. It also allows these businesses to emerge leaner and more resilient than before.
33. By helping businesses stay nimble and flexible, a robust R&I regime ultimately has a broader impact on the strength of the economy. It promotes entrepreneurship, access to finance and foreign investment.
34. We have seen examples of major cross-border turnarounds and restructurings in Asia in recent years:
a. In 2024, China Aoyuan Group, a major property developer headquartered in Guangzhou, China, obtained a court approval in Hong Kong, BVI and Cayman Islands, for its US$7.3 billion overseas debt restructuring.
b. In 2024, Garuda Indonesia, Indonesia’s flag carrier, applied to the Singapore International Commercial Court (“SICC”) to have its restructuring proceedings in Indonesia, recognised and enforced in Singapore. During the proceedings, two of the airline’s creditors – which had also been involved in other related insolvency proceedings in the USA, Australia and France – objected to the application. The SICC considered these objections and ultimately granted Garuda Indonesia’s application.
c. In 2020, at the height of travel restrictions brought about by the COVID-19 pandemic, Thai Airways successfully obtained recognition of its Thai reorganisation proceedings in the Australian courts. Thai Airways has since turned itself around and has made a continuous operating profit every quarter since 2023. In August 2025, Thai Airways successfully completed its debt restructuring programme and resumed trading of its shares on the Stock Exchange of Thailand for the first time in five years. In the first week of the resumption of trading, its share price surged almost 340 per cent.
35. On this note, there will be panel sessions later today, on the topics of “Real Estate Investing in the Asia Pacific Region” and “Airline Industry Turnarounds”.
a. The panellists, which include Honourable Justices, will be sharing their insights, regarding the details of, and strategies for, turnarounds in these industries.
b. I wish all of you, many fruitful discussions.
Features of a strong R&I framework
36. Now I turn to features of a strong R&I framework. A strong R&I framework will generally have certain key features.
37. First, a comprehensive legislative framework with strong and flexible tools that enable businesses to efficiently and cost-effectively restructure, according to their specific characteristics and needs.
38. Second, the necessary human expertise – and this is where you come in. This refers to having a judiciary as well as insolvency professionals, with the expertise and knowledge that is critical for successfully carrying out complex restructurings.
39. And third, mechanisms to allow for R&I frameworks to inter-operate within the R&I frameworks of other jurisdictions. I would like to delve further into this.
a. In the globalised economy today, it is common for businesses to have transnational interests. Restructuring challenges do not stop at national boundaries. Therefore, it is increasingly important for R&I frameworks to function beyond their own silos, and to operate seamlessly with the R&I frameworks of other jurisdictions.
b. Such inter-operability is especially crucial in Asia, given the fast-growing interconnectedness within Asia, as well as between Asia and the world.
40. This calls for the establishment of a pan-Asian restructuring ecosystem. This will allow distressed multinational businesses in Asia –
a. to have access to an ordered and efficient system,
b. that they can use to rehabilitate and restructure their businesses across borders.
41. What are the benefits of having an R&I framework that is inter-operable with foreign R&I frameworks?
a. First, with clear frameworks, cross-border businesses can spend less resources trying to decipher and reconcile the laws of different jurisdictions. This is also something I can associate with, from my years of practice. This reduces the time and costs of proceedings, which can ultimately improve the chances that a restructuring will succeed.
b. Second, reducing the barriers and costs of cross-border R&I proceedings, can encourage more distressed multinational businesses to attempt restructuring proceedings. This is because they will have greater clarity and assurance that the restructuring process can be smoothly carried out.
42. Some of the means through which jurisdictions pushed for greater harmonisation and inter-operability of R&I frameworks, include:
43. First, the adoption and use of model insolvency legislation and guiding instruments, such as the UNCITRAL Model Law on Cross-Border Insolvency (the “MLCBI”).
a. These legislation and instruments were created with the intent of allowing for greater coordination and uniformity of R&I frameworks, which enhances the certainty and predictability of proceedings.
b. In the region, states that have enacted the MLCBI, include: Australia, Japan, Myanmar, Philippines, Republic of Korea, and Singapore.
c. Most recently, on 29 July 2025, Malaysia’s Parliament (House of Representatives) passed its Cross-Border Insolvency Bill 2025. This Bill seeks to introduce a dedicated legal framework for cross-border insolvency in Malaysia. It will enact, substantially, the MLCBI. It is now tabled before the Senate, I believe, and we look forward to a positive outcome.
44. Second, the establishment of protocols for communication and cooperation between insolvency courts of different jurisdictions.
a. Such direct, court-to-court frameworks can greatly facilitate the efficient resolution of cross-border insolvency proceedings.
b. For example, the Supreme Court of Singapore and the Federal Court of Malaysia have a Protocol for court-to-court cooperation in cross-border insolvency and shipping matters. This protocol was utilised in the case of _Re Sapura 1200 Ltd_, for efficient case management.
45. Insolvency courts can also leverage on initiatives by the Judicial Insolvency Network (“JIN”) to enhance communication and exchanges between them, such as the JIN Guidelines and – more recently – the JIN Core Protocol.
46. For those who have yet to hear the news, at the 6th Conference of the JIN in June this year, the JIN – a network of insolvency judges from across the world – endorsed the JIN Core Protocol, which is a simplified alternative to the JIN Guidelines.
a. To elaborate, the JIN Guidelines is a framework for parties in cross-border R&I matters, to customise protocols in order to facilitate communication and cooperation between courts, reduce legal costs, and minimise the likelihood of inconsistent decisions.
b. The JIN Core Protocol provides a simplified option to the JIN Guidelines for jurisdictions that wish to start by taking smaller steps, before they ease into a full adoption of the JIN Guidelines.
47. At the same Conference this year, the JIN also endorsed the JIN Admiralty Guidelines.
a. These guidelines enhance coordination and cooperation amongst the courts in the management of application for the arrest of vessels, where the owner or bareboat charterer of the subject vessel or related entity within the same enterprise group is undergoing cross-border R&I proceedings.
b. These guidelines also provide for the best practices that a court may adopt when faced with a vessel arrest application; and an application for recognition and/or consequential relief, or for interim relief, in relation to restructuring proceedings commenced in a foreign jurisdiction.
48. Third, and more broadly on harmonising and ensuring inter-operability of R&I frameworks.
a. Jurisdictions can adopt and use instruments to enhance the certainty of cross-border dispute resolution and enforcement processes. This, in turn, helps to promote successful restructurings.
b. Globally established instruments that serve this purpose include:
i. the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (also known as the “New York Convention”); and
ii. the Convention on International Settlement Agreements Resulting from Mediation (also known as the “Singapore Convention”).
c. I will speak more about arbitration and mediation, later.
D. Singapore’s efforts to build and maintain a robust R&I framework
Singapore’s reforms and evolution as a restructuring hub – legal frameworks
49. Now, I turn to what is happening in Singapore.
50. To start, I want to share a recent example of the interaction of legal systems in a restructuring of a multinational business in today’s world.
51. In April 2025, the Singapore Court released its decision in the case of Re King & Wood Mallesons and other matters.
a. In its decision, the Singapore Court relied on the framework of the UNCITRAL Model Law on Cross-Border Insolvency (“MLCBI”) to recognise a consolidated reorganisation of three Chinese companies, recognise the appointment of the reorganisation administrators in Chinese proceedings, and grant several reliefs to the reorganisation administrators.
b. This decision is significant for being one of the first applications for recognition and relief under the MLCBI, in respect of insolvency proceedings commenced under Chinese insolvency law.
52. This adds to the body of case law, where the Singapore Court has recognised foreign restructuring and insolvency proceedings from many other jurisdictions, including India, the United States, Japan, Indonesia, Malaysia and the British Virgin Islands.
53. The groundwork for enabling this favourable outcome for cross-border insolvency proceedings goes back almost a decade.
54. We recognised the importance of building and maintaining a robust R&I framework in Singapore, that is equipped with the tools to effectively handle cross-border R&I proceedings.
55. Thus, over the past decade, we introduced several changes to modernise our R&I legislation by learning and adapting features from the world’s leading restructuring regimes.
56. Our domestic framework now comprises a variety of tools to facilitate efficient restructurings.
a. These include features based on, or those found in, Chapter 11 of the US Bankruptcy Code,
b. such as cross-class creditor cram-downs and super-priority rescue financing.
c. We also adopted the MLCBI, which I had just spoken about, to enhance our approach to cross-border insolvencies.
57. These changes culminated in the enactment of an omnibus Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”). The Act consolidated and harmonised the personal and corporate insolvency frameworks in Singapore.
58. Since then, we have continued to refine and update our R&I framework, to ensure that it remains relevant to the needs of our evolving economy. Most recently, in October 2023, the Ministry of Law convened a Committee to Enhance Singapore’s Corporate Restructuring and Insolvency Regime (“Committee”) to consider measures to further enhance Singapore’s corporate R&I framework.
59. In March 2025, the Committee published its report detailing its views and recommendations. Notably, its recommendations included adopting two new UNCITRAL Model Laws, on (1) the Recognition and Enforcement of Insolvency Related Judgments and (2) Enterprise Group Insolvencies, and also recommendations to further streamline efficient cross-border insolvencies.
60. The Ministry of Law has conducted a public consultation on the Committee’s recommendations and is presently studying the recommendations and feedback.
Singapore’s reforms and evolution as a restructuring hub – infrastructure for dispute resolution
61. At the same time, to complement our legal frameworks, we continued to enhance our infrastructure.
a. We wanted to have strong and trustworthy institutions,
b. that are well equipped to handle and determine all types of matters,
c. including complex cross-border R&I proceedings.
62. The Singapore International Commercial Court (“SICC”) is one such institution, that is well-suited to handle and hear complex cross-border R&I proceedings. The SICC brings together renowned International Judges and local and foreign counsel from different jurisdictions and legal systems to handle complex cross-border matters.
63. This enhances the SICC’s effectiveness and efficiency in resolving complex cross-border R&I proceedings.
64. For instance, in 2024, the SICC facilitated the successful restructuring of No Va Land Investment Group Corporation - one of Vietnam’s largest real estate developers. The company obtained the SICC’s approval within 15 days from filing its application to restructure US$300 million in convertible bonds issued under New York Law.
65. Beyond the courtroom, our alternative dispute resolution (“ADR”) institutions, such as the Singapore International Arbitration Centre (“SIAC”), are also key pillars in our infrastructure.
66. Singapore’s ADR institutions and specialised procedural protocols offer a range of frameworks and options which parties in a restructuring can leverage on to resolve their disputes with greater efficiency and ease. I highlight two examples.
67. First, the Arb-Med-Arb protocol offered by the SIAC and Singapore International Mediation Centre (“SIMC”).
a. It provides a dispute resolution process that integrates and combines the use of arbitration and mediation. Parties are able to leverage on the strengths of both mechanisms to resolve their disputes, which are insolvency-related or otherwise.
b. The resulting mediated settlement may be recorded as a consent award. Such an award would be recognised and enforceable in 172 countries under the New York Convention, subject to the countries’ local laws.
68. The flexibility of the Arb-Med-Arb protocol makes it an invaluable tool for creditor-debtor disputes within restructuring processes.
a. The more avenues there are for disputes to be efficiently resolved,
b. Then the lower the risk of a debt restructuring arrangement from failing.
69. Second, the upcoming SIAC Restructuring and Insolvency Arbitration Protocol (“SIAC RIA Protocol”). This was released in draft form for a public consultation in December 2024, and which will be formally launched next week.
70. The SIAC RIA Protocol is a first, for an international arbitration institution, in proposing the use of arbitration to resolve restructuring, debt adjustment and insolvency-related disputes and claims.
71. It was developed by SIAC in close consultation with local and overseas judges, insolvency and arbitration experts and the Court of Arbitration of the SIAC. It is intended to apply where parties have agreed to use arbitration to resolve their insolvency-related disputes.
72. The SIAC RIA Protocol will be complemented by a Specialist Panel of Arbitrators for Restructuring & Insolvency Disputes. They comprise insolvency experts and practitioners who are alive to the complexities and context of restructuring and insolvency disputes.
73. With these developments, we hope to continue working closely with our partners in the R&I space, to drive the establishment of a Pan-Asian R&I ecosystem; an ecosystem where multi-national businesses will have the tools and confidence to conduct cross-border restructurings swiftly and effectively.
E. Concluding remarks
74. To conclude, let me recount that I began my speech by talking about global uncertainty and economic headwinds.
75. But as they say, every cloud has a silver lining.
76. There are several opportunities available for the turnaround industry to aid businesses to pivot and build a stronger future.
77. The region’s economies have become increasingly interconnected. Countries have forged deeper trade relationships, both within ASEAN, Asia and across global markets. Therefore, I expect Asian economies to continue growing from strength to strength, and powering global economic growth.
78. With this encouraging outlook, the R&I ecosystems in Asia can and should leverage on the changing landscape.
a. Businesses are encouraged to adapt to and capitalise on these global changes, by remaining nimble and innovative.
b. The R&I community, in particular, is encouraged to take steps to strengthen harmonisation and communication with one another.
c. These will provide the building blocks for a seamless and integrated pan-Asian R&I ecosystem and community, that – in turn – will strengthen Asian economies collectively.
79. All of you in the turnaround industry are integral to building up of this groundwork.
80. I wish everyone a very fruitful discussion on the second day of the TMA APAC Regional Conference.
81. Thank you very much for your attention.
Last updated on 21 August 2025