As part of the new Expatriate Employment Policy effective June 1, 2026, a formal Succession Planning declaration will become mandatory for all MDEC and ESD-registered companies from January 1, 2027. The requirement is being introduced on a phased basis to give companies time to prepare. From January 1, 2027, companies will be required to submit a Succession Plan declaration as part of their expatriate employment obligations. This applies to both MDEC and ESD-registered companies. The requirement is designed to ensure that knowledge and skills are progressively transferred from expatriate employees to local staff throughout the duration of their employment.
The requirement is not yet in force, but MDEC encourages companies to begin preparing succession plan information now to ensure they are ready ahead of the January 2027 deadline.
While the January 2027 deadline provides a reasonable lead time, companies should not delay in thinking about how they will meet this requirement. Early preparation will help avoid any last-minute compliance issues. We will continue to monitor for further guidance from MDEC on the specific format and content of the Succession Plan declaration and will issue updates as more details become available.
This alert is intended for informational purposes only and does not constitute legal advice. Please contact Newland Chase directly for case-specific guidance.