Malaysia will require MDEC and ESD-registered companies to submit a formal Succession Planning declaration as part of expatriate employment obligations from January 1, 2027. The requirement is connected to the new Expatriate Employment Policy effective June 1, 2026, and is being introduced on a phased basis.
The new requirement will apply to both:
- MDEC-registered companies
- ESD-registered companies
From January 1, 2027, covered companies must submit a Succession Plan declaration. The purpose is to show how knowledge and skills will be progressively transferred from expatriate employees to local staff during the expatriates’ employment.
The requirement is not yet in force. MDEC is encouraging companies to begin preparing succession plan information before the January 2027 deadline.
Specific guidance on the required format and content of the Succession Plan declaration has not yet been provided. Further details from MDEC are expected.
Companies should use the lead time before January 2027 to review how they will document skills transfer, local staff development, and succession planning for expatriate roles. Early preparation may help avoid last-minute compliance issues once the declaration becomes mandatory.
Source article: newlandchase.com
