89% of businesses in Singapore find their existing succession plan strategy lack effectiveness

• 73% of businesses face challenges with succession planning
• 39% of businesses do not have a succession plan in place
• 54% of companies lack clarity with the policies and procedures around succession planning

Global talent solutions provider Robert Walters Singapore has released a report exploring the state of succession planning in Singapore. Titled “Success in succession: Building a leadership pipeline to keep your business thriving”, it revealed that companies are facing multiple challenges with succession planning. With almost all (89%) of companies believing that their existing strategies are less effective than desired, and two in five (39%) without a formal succession plan in place, there is increasing urgency for companies to seek clarity and develop effective succession planning strategies.

An ageing workforce and unclear processes make succession planning challenging

By 2030^[1], around 1 in 4 Singapore citizens (23.9%) will be aged 65 and above. The population of citizens aged 65 and above has also risen from 13.1% in 2015 to 20.7% in 2025. As more experienced employees exit the workforce, the aging workforce will put pressure on businesses to ensure readiness for leadership transitions. One on four (25%) survey respondents shared that finding suitable replacements for retiring employees is affecting their succession planning. Yet a more pressing concern is the increased risk of losing critical skills and experience (36%), while others (17.5%) noted there was difficulty transferring knowledge and expertise to younger employees.

Beyond the impact of population changes, companies find the process of implementing an effective succession plan challenging mainly due to vague processes or the lack of resources to support it. Among the respondents, 54% of the companies surveyed lack clarity on the policies and procedures around succession planning, making it difficult to prepare leaders internally. Other challenges include difficulty in identifying high-potential employees (51%), and insufficient resources for training and development (33%). 

Findings from the survey also revealed top cultural challenges impacting leadership planning, they include the emphasis on harmony within the organisation (62%) and the respect for hierarchy and seniority (40%). These can create subtle barriers to effective succession planning, as organisations that focus on merit-based progression and greater inclusivity are more likely to develop a resilient and diverse leadership pipeline.

Overcoming Barriers to Succession Planning in Singapore

For succession planning to succeed, leadership must align and be clear on the long-term business goals. High performers, who often excel in technical or operational areas, may still need support to build the leadership and people management skills required at senior levels. Integrating structured assessments of talent into the existing strategy can help companies move beyond guesswork and build confidence in their succession decisions.

In Singapore’s fast-paced and globally connected economy, succession planning is more than just a strategic initiative, it’s a business imperative.

"By identifying and developing future leaders today, organisations can ensure continuity, foster innovation, and remain resilient in the face of rapid change. Strong leadership pipelines are key to sustaining success and driving growth in this competitive landscape,” says Kirsty Poltock, Country Manager of Robert Walters Singapore.

Robert Walters’ report also provides guidance for businesses looking to put together, maintain, and assess the effectiveness of their succession plan:

1. Establish key positions and business objectives
2. Select high potential employees
3. Evaluate employees’ readiness to advance into key positions
4. Plan for employees’ individual development and retention
5. Identify positions without successors and plan for positions that cannot be filled internally
6. Review and communicate the plan regularly

The “Success in succession: Building a leadership pipeline to keep your business thriving” report surveyed over 100 organisations in Singapore in the month of May. The survey gathered insights from Singaporean companies on how their organisations approach succession planning, as well as explored broader perspectives on the state of succession planning here.

^[1] https://www.population.gov.sg/our-population/population-trends/longevity/

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