Singapore - Foreign law firms would strengthen Singapore's economy and reputation as a regional legal center, especially in the corporate and banking sectors, a cabinet minister said Wednesday.

Law Minister Kasiviswanathan Shanmugan welcomed amendments approved by Parliament to permit foreign firms to practise, the Strait Times reported.

Five foreign law firms are to be licensed in October to hire qualified Singapore attorneys. Foreign firms are to be allowed to share up to 49 per cent of the profits of joint ventures, according to the legislation.

Acknowledging local concerns about competition, the minister said foreign firms would not be permitted to practise in constitutional, administrative, criminal, family, or estate and trust law. (dpa)