KUALA LUMPUR: The government’s power to suddenly declare public holidays should be controlled, says the Small and Medium Enterprises Association (Samenta).
Samenta president Datuk William Ng said the Public Holidays Act 1951 should be amended to allow the declaration of additional non-emergency holidays with at least three months’ notice.
He said the current practice of announcing extra holidays at short notice disrupted business operations and placed financial strain on companies which could have been avoided.
“If certain festivities are deemed significant enough to warrant a holiday, they should be gazetted well in advance and communicated through the national calendar.
“This allows businesses to adjust manpower planning without incurring ‘surprise’ losses,” he said in a statement yesterday.
Ng said Samenta had long argued that discretionary holiday declarations should be limited to genuine national emergencies or major milestones such as the installation of a new Yang di-Pertuan Agong.
He said the concern was not merely administrative but economic.
Citing research by the Centre for Future Labour Market Studies (EU-ERA), Ng said a study of 101 countries found that economic productivity and workers’ well-being tended to peak at around 10 public holidays annually.
“This ‘Optimal 10’ rule shows that beyond this threshold, the cost to Gross Domestic Product (GDP) from disrupted manufacturing, late-delivery penalties and higher manpower costs outweighs any temporary boost in consumer spending or domestic tourism,” he said.
Ng said Malaysia already observes one of the highest numbers of public holidays in the region.
By adding unscheduled days, he said, the country risked moving further down the curve of diminishing returns.
“Businesses are built on the ability to plan. For SMEs, every working day is meticulously scheduled.
“When a holiday is declared suddenly, businesses face penalties and must pay up to triple wages to meet contractual obligations,” he said.
Ng said the services, retail and food and beverage sectors were particularly vulnerable because delivery schedules and perishable stocks could be disrupted by last-minute changes.
“SMEs are ready to contribute to rebuilding the economy, but the government must recognise the signal such announcements send to the business community.
“Declaring additional holidays when we are fighting to survive is the wrong message, regardless of the intent,” he added.
