KUALA LUMPUR: Sudden public holidays are "an unhealthy economic habit that must stop", says the Small and Medium Enterprises Association (Samenta).
Its president Datuk William Ng (pic) said the practice of declaring additional holidays at short notice disrupts business operations and places avoidable financial strain on companies, especially small and medium enterprises already grappling with rising operating costs.
On Sunday (March 15), Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysians will have an extra public holiday for Hari Raya Aidilfitri this year.
If Hari Raya falls on Friday (March 20), the additional holiday will be next Monday (March 23). If it falls on Saturday (March 21), the extra holiday will then be on the preceding Friday.
Anwar said the decision to appreciate the people’s hard work and dedication during Ramadan and to help Malaysians plan their festive travel.
Ng said that while Samenta understood the government’s intention, the recurring practice of declaring ad hoc holidays sends the wrong signal to businesses.
"While we understand the government’s intent to appreciate the hard work of the rakyat during Ramadan, Samenta must reiterate its firm stance that the practice of declaring 'surprise' or ad hoc public holidays is an unhealthy economic habit that must stop," he said in a statement on Monday (March 16).
Ng said businesses depended heavily on predictable schedules.
"Businesses are built on the ability to plan. For SMEs, every working day is meticulously scheduled.
"When a holiday is declared suddenly, manufacturers face penalties and must pay triple wages to meet existing contractual obligations," he said.
He said sectors such as services, retail, and food and beverage were particularly vulnerable as perishable stocks and delivery schedules can be disrupted by last-minute changes.
Ng added that Malaysia already had one of the highest numbers of public holidays in the region.
He cited a study by the Centre for Future Labour Market Studies (EU-ERA), which suggested economic productivity and worker well-being tend to peak at around 10 gazetted holidays a year.
Beyond that, the economic costs from disrupted manufacturing, delivery penalties and higher manpower expenses could outweigh any short-term boost in consumer spending or domestic tourism.
Samenta urged the government to review the Public Holidays Act 1951 to limit discretionary holiday declarations.
Ng said additional holidays should be gazetted well in advance so businesses can adjust manpower planning and contractual commitments.
"We must institutionalise a minimum notice period of at least three months for any non-emergency additional holidays.
"SMEs are ready to work hard to rebuild our economy, but we need the government to understand that the messaging is as important as the intent.
"Declaring additional holidays when we are fighting to survive is the wrong message, regardless of the intent," Ng said.
