Milton Cheng, global president of Baker McKenzie, one of the three largest law firms in the world, was in Barcelona this week. It has a turnover of more than 3,000 million euros a year. From the heights of his offices on Avinguda Diagonal, Cheng expressed the firm commitment of the United States group to the city, where he landed 35 years ago.
What brings you to Barcelona?
We have the global board meeting that takes place four or five times a year in a different city. As president of Baker McKenzie since 2019, it is the first time I have visited Barcelona, ??a city I am in love with. I have also taken advantage of my stay to visit local clients: large companies in the health, technology, fashion, beauty and minerals sectors.
What do you think of the team of 70 lawyers working in the city?
The talent that comes out of local universities is top notch and also has a competitive cost compared to other big cities like London and New York.
What projection does it have in the future?
The Barcelona office has a global ambition. In fact, it already exports talent to other delegations we have abroad. Recently, lawyers from these offices have been temporarily transferred to work in Dubai, London, Luxembourg and the United States.
I understand that this is beneficial.
A lot. When these professionals return, they have a very profitable global vision for the large clients we have in Catalonia. This territory increasingly attracts more centers of excellence from foreign multinationals and these companies need lawyers with international experience.
How is the Spanish market evolving?
Spain is a strategic country, our clients in this country have investments abroad and this helps us to grow. In terms of revenue, Spain invoices around 90 million, which is about 7% of the turnover generated by the Emea region (Europe, Africa and the Middle East). This is explained by the fact that the offices in Madrid are just as dynamic as those in Barcelona.
What is your opinion of the judicial system in this country?
I don’t know it in depth, but I think it needs greater public investment to improve efficiency. It is not a problem that only affects Spain, in the United States we also struggle with deficiencies in the system. As an Asian professional born in Singapore and with work experience in Hong Kong, I confirm that a strong investment in justice favors the economic growth of a country.
What would improve the legal framework in the European Union?
I believe that greater regulatory harmonization in fiscal matters, data privacy and ESG criteria, which regulate the social and environmental impact of companies, is desirable. On the other hand, in matters of education or consumption, I think it is better for each State to maintain the singularities of its legal system.
How are incomes evolving in Europe?
Really good. Although we are based in the United States, Emea’s revenue currently exceeds that of North America.
What is your growth strategy?
Unlike other large firms, we consider it key to be as close as possible to our clients. For this reason, we are committed to having a network of offices all over the world. A clear example is in Spain, where we have two offices, instead of just one. This strategy to grow worldwide also helps us avoid crises.
In what sense?
There is always one region that evolves better than another and this helps balance the results. For example, China is still recovering from the pandemic crisis, while the West is evolving upwards.
How do you rate the year 2023?
It started with M&A activity slowing down due to rising interest rates and inflation, but now we see the market becoming more lively again.
What are your customers’ biggest concerns?
Companies tell us their concerns about changes in geopolitics, the war in Ukraine, rising energy prices and especially digitization, now that generative artificial intelligence has become so popular.
Do you think it will eliminate jobs in your industry?
In our case, we are studying how to apply it in a way that improves the efficiency of our operations and professionals can allocate their efforts to generate more value.
