The Small and Medium Enterprises Association (Samenta) has called on the government to stop issuing “surprise” public holidays, describing the practice as an “unhealthy economic habit” that burdens businesses financially.
The statement comes after the Prime Minister announced an extra public holiday for Hari Raya Aidilfitri, prompting concerns from the SME sector. Samenta national president Datuk William Ng said sudden holiday announcements disrupt business planning and impose unnecessary costs, particularly on manufacturers who may face penalties and must pay triple wages, while the services, retail, and F&B sectors struggle with perishable stock and delivery schedules.
Ng referenced research from the Centre for Future Labour Market Studies (EU-ERA), which suggests productivity peaks at around 10 public holidays annually. He warned that Malaysia already ranks among the highest in the region for public holidays, and adding unscheduled days could push the economy further into diminishing returns due to operational disruptions and higher manpower costs.
To mitigate the impact, Samenta proposed amending Section 8 of the Public Holidays Act 1951 to limit ministerial power to declare ad-hoc holidays, reserving them for genuine national emergencies or major events like the installation of a new Yang di-Pertuan Agong. The association also recommended introducing a minimum notice period of at least three months for any non-emergency holidays to allow businesses sufficient time to plan.
“SMEs are committed to rebuilding the economy, but sudden holiday declarations send the wrong message and undermine efforts to stabilise businesses,” Ng said.
