By K. C. Vijayan, Law Correspondent

AFTER several years of seeing its numbers stagnate, the legal profession is back on the growth path again.

Figures from the Law Society's annual report published yesterday show there were 3,697 practising lawyers as of August this year - 280 more than in August 2007 and the highest number in five years.

But the growth in numbers is not matched by a rise in the number of firms. Instead, there are fewer firms around now - 781, compared to 800 five years ago.

A closer look at the Law Society figures shows that the number of medium-sized (at least six lawyers) and large firms (more than 30 lawyers) has either remained stable or steadily increased.

It is the number of small firms (those with five or fewer lawyers) that has shrunk, from 711 in 2005 to 685 today.

Lawyer Amolat Singh, managing partner of his own firm, said that more small firms were merging to cut costs and save on overheads.

'This will also enhance their research capabilities and the services they deliver,' he added.

The profession has also seen another shift - more women in its ranks. About four out of every 10 lawyers are women, against three out of every 10 last year.

Several reasons have been put forward by lawyers for the overall rise in numbers. The economic downturn, for one, has resulted in fewer lawyers leaving the Bar.

Also, moves to liberalise the legal services sector have proven successful in attracting new entrants.

There are now six major foreign law firms licensed to practise Singapore law in specified areas.

Greater collaboration has also been allowed between local and foreign firms.

And as Singapore works towards its ambition of becoming an international legal hub in the coming years, the number of lawyers here should continue to grow.

At the entry level, too, restrictions have been eased.

In May this year, it was announced that Singaporeans and permanent residents who have studied law and have two years' legal experience here or overseas need only sit for one part of the two-part Bar examination.

A Ministry of Law spokesman said yesterday that 240 to 250 candidates are registered to take the examination later this year.

Lawyers contacted see the increased numbers as a welcome relief, to help manage the growing workload.

Drew & Napier's Adrian Tan said: 'As Singapore is positioning itself to be a dispute resolution hub internationally, we need bright young lawyers to enter the industry to serve the growing demand.'

Lawyer Niru Pillai, senior director of Global Law Alliance, which has about 10 lawyers, said the rise in numbers will benefit smaller firms as well.

In the past, the big firms would snap up all the fresh graduates, but these days there are enough of them to go around, so the smaller firms will be able to grow as well, he said.

Law Society's payouts this year

THE Law Society received 15 applications for compensation from clients of runaway lawyer Zulkifli Amin and paid out $42,200 in four cases.

Five were rejected, one was withdrawn and another five, all linked to the same case, are still being considered.

Payouts from the society's compensation fund are made to help clients who suffer financial hardship because a lawyer or employee of a law firm was dishonest in the course of his work.

Zulkifli Amin fled in November 2007 with some $6 million of his clients' money, meant for conveyancing transactions he handled.

This year's payout of $42,200 is a sharp drop from last year's record total of $606,790, which included $595,000 paid to two clients who suffered losses following the $1.68 million fraud committed by jailed lawyer Junaini Mainin.

The Law Society's financial report shows a total of $8,387,419 in its compensation fund.

This article was first published in The Straits Times.