Announcement: Phased Implementation of Succession Plan Requirement Under the Revised Expatriate Salary Policy

Following the announcement made by the Ministry of Home Affairs (MOHA) on 14 January 2026 regarding the Revised Expatriate Salary Policy, which took effect on 1 June 2026, we wish to inform that one of the key elements introduced under the policy is the succession plan requirement.

The succession plan is aimed at ensuring a structured and systematic transfer of knowledge and expertise from expatriates to local employees throughout the employment tenure. This initiative supports the Government’s objective to strengthen local talent development while maintaining business continuity and operational efficiency.

As part of a phased implementation approach, the requirement to submit and comply with the succession plan will only take effect from 1 January 2027 onwards. This transition period is provided to allow organisations sufficient time to prepare, plan, and align their internal workforce strategies with the new requirement.

In the meantime, companies are encouraged to take proactive steps to identify suitable local successors and establish comprehensive training and knowledge transfer frameworks in preparation for full implementation.

For any clarification, please do not hesitate to contact MIDA at the Industry Talent Management & Expatriate Division and Foreign Investment Division, MIDA or via email at [email protected].

Thank you.

Malaysian Investment Development Authority (MIDA)