As the Year of the Horse approaches, legal departments across the Asia-Pacific region face a shift from strategic discussions to decisive action, writes Jacob Flax.
As we close out 2025 – the Year of the Snake in the Chinese zodiac – I find myself reflecting on a year that embodied many of that symbol’s qualities: strategic thinking, careful observation, and the wisdom to transform when circumstances demand it. The legal landscape across Singapore, Hong Kong, and Australia has shifted in ways both subtle and profound, and as we prepare to enter the Year of the Horse in 2026, the energy feels poised to shift from contemplation to momentum.
Working with legal departments across the region this year – from economic restructures in Australia to cross-border complexity in Hong Kong, from AI governance frameworks in Singapore to reimagining legal operations across all three markets – has provided a unique vantage point on where the profession is heading. The most revealing insights have come from candid, strategic conversations with in-house legal teams focused on real business outcomes rather than theoretical trends.
5 critical shifts that defined 2025
1. The CFO-GC partnership is no longer optional
The most successful legal departments we worked with this year weren’t just aligned with finance – they were integrated with it. General counsel who spoke the language of business value, who could articulate legal spend in terms of enterprise risk mitigation and opportunity enablement, secured resources and influence. This was particularly pronounced in Australia, where economic headwinds made every dollar count, and in Singapore, where the precision of financial planning has always been cultural. Those who remained in purely legal terms found themselves increasingly sidelined in strategic conversations.
2. AI moved from experimentation to expectation
Across our three core markets, we saw AI shift from pilot programs to operational reality. Singapore led the charge with government-backed initiatives and regulatory sandboxes, while Australia and Hong Kong followed with more cautious but increasingly committed approaches. But the winners weren’t those with the most sophisticated technology – they were the teams who solved the change management challenge first. The lesson: technology is the easy part. People, processes, and clear use cases matter more than the sophistication of your AI stack.
3. Cross-border complexity intensified
For companies operating across our region, 2025 brought home just how different Singapore, Hong Kong, and Australia are despite their common law heritage. From diverging approaches to data privacy and AI regulation to fundamentally different employment law frameworks, the legal departments that thrived were those that built deep local expertise rather than assuming a one-size-fits-all approach. Hong Kong’s unique position – navigating both its common law tradition and its relationship with Mainland China – required particularly nuanced legal thinking this year.
4. Talent wars require new weapons
The competition for top legal talent reached new intensity across all three markets, with Singapore and Hong Kong facing particular pressure as regional hubs. But throwing money at the problem didn’t solve it. The firms and companies that succeeded in attracting talent offered something different: flexibility, meaningful work, exposure to leading-edge challenges, and – critically – the ability to work across borders without constant relocation. In Australia, where lifestyle considerations weigh heavily, remote and hybrid work became non-negotiable baseline expectations, rather than perks.
5. ‘Doing more with less’ became ‘doing different with purpose’
Budget constraints continued across the region, particularly acute in Australia’s cost-conscious environment. But the narrative shifted. The most innovative legal leaders stopped trying to simply optimise existing models and started asking more fundamental questions: What should we actually be doing? What creates real value? What can we stop doing entirely? This willingness to fundamentally reimagine the work – not just do it more efficiently – separated the leaders from the followers.
A new year of momentum and transformation for APAC
As we enter the Year of the Horse – traditionally associated with energy, independence, and forward momentum – I see several trends that will define legal operations across APAC:
Australia embraces pragmatic innovation
Australian legal departments will lead the region in adopting flexible talent models and alternative delivery approaches – not out of innovation for its own sake, but out of practical necessity. With tighter budgets and talent shortages, Australian GCs will be more willing to experiment with new approaches. The keyword will be “pragmatic” – what works matters more than what’s fashionable.
The rise of the portfolio GC
We’ll see more general counsel managing their legal resources like investment portfolios, with a sophisticated mix of in-house talent, preferred firms, ALSPs, technology, and flexible talent. This portfolio approach will manifest differently in each market, but the underlying principle will be the same: the optimal blend for each type of work matters more than any single sourcing decision.
The generational handover accelerates
The transfer of leadership from Baby Boomers to Gen X and Millennials will accelerate in 2026, bringing fundamentally different assumptions about how legal work should be done. This new generation is less attached to traditional models, more comfortable with technology, and more focused on outcomes than presenteeism. This will drive faster adoption of flexible talent models and alternative delivery approaches across all three markets.
Singapore solidifies position as the region’s legal innovation hub
Singapore will further cement its role not just as a legal services centre, but as the testing ground for next-generation legal delivery. The government’s continued investment in legal tech, combined with the concentration of regional head offices and sophisticated legal buyers, will make Singapore the place where new models are proven before scaling across Asia.
Hong Kong navigates dual identities
Hong Kong will continue to balance its role as an international financial centre with its deepening connections to Mainland China. The legal departments and firms that thrive will be those that can operate fluently in both worlds – maintaining international standards while developing genuine expertise in Chinese law and business culture.
The Year of the Horse
In Chinese tradition, the Year of the Horse brings enthusiasm, independence, and a spirit of adventure. As we enter 2026, I sense that energy in our conversations with clients across Singapore, Hong Kong, and Australia. There’s a readiness to break from old patterns, to experiment with new approaches, to move with speed and purpose rather than cautious incrementalism.
The Snake year taught us to observe carefully and plan strategically. The Horse year will be about execution, momentum, and courage.
The challenges facing legal departments across APAC in 2026 are significant, but they’re also creating unprecedented opportunities for those willing to rethink how legal work gets done. For Australian legal leaders – whether managing regional operations, running lean domestic teams, or navigating cross-border complexity – 2026 will be less about perfecting existing models and more about having the courage to experiment with fundamentally different approaches.
Here’s to a year of momentum, innovation, and meaningful progress.
Jacob Flax is the managing director and head of APAC for Axiom.
