The Small and Medium Enterprises Association Malaysia (SAMENTA) has criticised the government’s decision to declare an additional public holiday for the upcoming Hari Raya Aidilfitri celebration, warning that last-minute announcements place unnecessary financial pressure on businesses, particularly small and medium enterprises (SMEs).
SAMENTA national president Datuk William Ng said the practice of declaring ad-hoc public holidays, such as the latest announcement by Prime Minister Datuk Seri Anwar Ibrahim, creates operational disruptions for companies already facing rising costs and a volatile global economy.
He cited research by the Centre for Future Labour Market Studies, which suggests economic productivity and worker wellbeing peak at around 10 gazetted public holidays annually.
“Beyond that level, the study indicates the economic cost from disrupted manufacturing schedules, delivery penalties and higher labour expenses can outweigh gains from consumer spending or tourism,” Ng explained.
He noted that Malaysia already has among the highest numbers of public holidays in the region, and adding unscheduled holidays risks pushing the economy into diminishing returns while affecting SMEs, which form the backbone of the economy.
He added that sudden holiday declarations also disrupt carefully planned production schedules, forcing manufacturers to pay triple wages to meet contractual obligations while affecting sectors such as services, retail and food and beverage that depend on fixed delivery and supply timelines.
“As such, SAMENTA is urging the government to review the Public Holidays Act 1951, particularly Section 8, to limit the ability to declare ad-hoc holidays except in cases of national emergencies or major national milestones.
“The association also proposed a minimum three-month notice period for any additional holidays to allow businesses to plan manpower and operations more effectively,” Ng said.
