Linklaters is planning to apply for a licence to practise local law in Singapore following the confirmation last month (13 March) that it has ended its joint venture with top-tier Singapore firm Allen & Gledhill (A&G).

Instead of pursuing another formal alliance in the region, the magic circle firm now intends to engage in several informal referral relationships with local law firms, as well as growing its own practice by hiring lawyers with Singapore law expertise.

As a result, the magic circle firm intends to put itself forward as soon as the Singaporean Government invites applications for a new round of licences.

Currently, only six foreign firms including magic circle rival Allen & Overy (A&O) hold a licence to practise local law in Singapore after the introduction of a more liberal regime in 2008.

Linklaters recently called time on its joint venture with Singapore's A&G after the magic circle firm declined to form a closer relationship due to a lack of demand for Singapore law advice from its international clients.

The development came amid talks between A&O and A&G over a potential tie-up – discussions which were eventually called off last week. An A&O spokesperson stated that a proposed deal had failed to come to fruition because they could not reach an agreement that was satisfactory to both parties.

The news comes after the Singapore Ministry of Justice recently moved to open up the local legal market to allow overseas law firms to share profits with local firms. However, while allowing mergers to take place, foreign firms will not be able to hold an equity stake of more than 33%.