Most Apac firms fear cross-border litigation in 2026, but only half have funds to manage disputes: Baker McKenzie survey
Limited resources reduce flexibility and increase risk of delayed or reactive decision-making, law firm notes
[SINGAPORE] Nearly nine in 10 Asia-Pacific companies fear facing cross-border or multi-agency investigations in 2026, as technology disruptions, geopolitical tensions and supply chain risks drive a surge in dispute exposure across the region.
At 87 per cent, the Asia-Pacific figure is higher than the global average of 82 per cent, a new survey by international law firm Baker McKenzie showed.
The survey, which looks at key litigation trends and dispute risks globally, polled senior decision-makers from “industry-leading multinationals” across sectors such as industrials, consumer goods, retail, life sciences and technology.
Of the 600 respondents, 200 were from Singapore and Hong Kong.
“Legacy risk frameworks built around traditional financial and contractual disputes are no longer sufficient for an environment where litigation and enforcement risk is simultaneous, multi-jurisdictional and reputationally decisive,” said Kwun-Yee Cheung, dispute resolution partner at Baker McKenzie.
“A nimble and forward-thinking mindset is required to tackle the complex issues arising.”
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In the ninth annual Global Disputes Forecast, respondents identified operational and supply chain disruptions; technology and data risks; legal and regulatory risks; and geopolitics and trade policy as the top threats increasing their exposure to disputes.
Sunny Mann, Baker McKenzie’s global chair, said the challenge for multinationals is “that global integration, once seen as a hedge against risk, has become a vulnerability”.
“Supply chains cross contested borders, data flows encounter sovereignty barriers and business relationships can become compliance liabilities overnight as political alignments shift.”
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Yet, almost half of the respondents said that their disputes budget for 2026 is inadequate to meet current risk levels, with funding and resourcing constraints cited as the top barrier to litigation preparedness.
Baker McKenzie noted that limited resources reduce organisations’ flexibility and increase the risk of delayed or reactive decision-making when disputes escalate unexpectedly.
Singapore vs Hong Kong
Beyond the top threats cited by legal leaders, risk profiles are also expanding across other categories, Baker McKenzie said.
In Singapore, 81 per cent of organisations ranked environment, social and governance and ethical accountability among the top threats that may increase dispute risks this year.
Singapore’s commitment to environmental transparency is shifting from voluntary disclosures to mandatory reporting, making its approach “among the most advanced in Asia-Pacific and aligned with global standards”, said Baker McKenzie.
This is against the backdrop of tighter climate disclosure requirements. The firm noted that large private companies will be required to report climate information starting in fiscal year 2030.
Scope 1 and Scope 2 emissions reporting will be required; Scope 3 emissions disclosure will remain voluntary.
The Monetary Authority of Singapore is expected to integrate these disclosure expectations within its oversight of financial institutions, said Baker McKenzie.
Meanwhile, Hong Kong ranked cybersecurity and employment disputes among key risks for organisations.
Baker McKenzie noted that as organisations increasingly use artificial intelligence (AI) for recruitment and management, these risks may become intertwined as the employment sector is particularly vulnerable to AI-related disputes.
The use of AI has also raised concerns about “unintended bias” of data that is used in the training of algorithms or is produced by such programmes, the firm added.
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