Does a Personalised Employment Pass (PEP) holder need to leave Singapore after the expiry of the 3 year validity period?

WEF 1 December 2012, the Personalised Employment Pass (PEP) is issued for a 3-year period and is non-renewable. During the validity period of 3 years, the PEP holder may apply for a Permanent Residency Status or the Singapore Employment Pass if he wishes to continue his stay in Singapore.