On 26 May 2026, MYXpats Centre issued a clarification update on the Revised Expatriate Salary Policy, which came into effect on 1 June 2026. The update addresses one specific element of the policy: the succession plan requirement for Category II and Category III Employment Pass holders.

MYXpats Centre has confirmed that as part of a phased implementation approach, the succession plan requirement will only take effect from 1 January 2027 onwards. This allows organisations sufficient time to prepare and align their internal processes with the new requirement before it becomes mandatory.

What Is the Succession Plan Requirement?

Under the revised policy, companies employing Category II and Category III EP holders are required to demonstrate a structured plan for transferring knowledge and expertise to local employees over the course of the expatriate's tenure. This is a formal declaration that will need to be submitted to the relevant authorities on an annual basis once mandatory.

While it is not yet compulsory, MYXpats Centre has encouraged companies to begin providing succession plan information where available as part of current EP applications — in preparation for the full mandate in 2027.

What You Should Be Doing Now

The deferral gives employers a window to act, not a reason to delay. Companies that leave succession plan preparation to late 2026 risk scrambling to meet the January 2027 deadline. We recommend:

• Identify all current Category II and III EP holders in your organisation;
• Begin drafting succession or knowledge transfer plans for each affected role, even in outline form;
• Assign internal ownership of the succession plan process to HR or a designated contact; and
• Engage an immigration consultant early if you need guidance on what constitutes an acceptable plan.

For a full breakdown of the revised salary thresholds, employment duration limits, and what the policy means for your EP applications, refer to our earlier article:

📄 Earlier Coverage New Employment Pass Salary Thresholds Effective 1 June 2026 Full breakdown of the revised salary floors, duration limits, and succession plan requirements across all EP categories.

If you need assistance preparing for the succession plan requirement or reviewing your current EP applications in light of the new salary policy, contact our team for guidance.