KUALA LUMPUR — The Small and Medium Enterprises Association Malaysia (SAMENTA) has called on the government to review the Public Holidays Act 1951 following the recent announcement of an additional public holiday for the upcoming Hari Raya Aidilfitri celebration.
Its national president, William Ng, said while the association understands the government’s intention to recognise the efforts of Malaysians during Ramadan, the practice of announcing “surprise” or ad-hoc public holidays places unnecessary pressure on businesses, particularly small and medium enterprises (SMEs).
According to SAMENTA, the repeated declaration of additional holidays at short notice — whether at the national or state level — creates avoidable financial strain for companies already facing rising operational costs and uncertain global economic conditions.
The association cited research by the Centre for Future Labour Market Studies (EU-ERA), which suggests that economic productivity and worker well-being are optimised when countries observe about 10 gazetted public holidays annually.
The study, which analysed data from 101 countries, found that exceeding this threshold could lead to economic losses due to disrupted manufacturing schedules, late-delivery penalties and higher labour costs, outweighing short-term gains from increased consumer spending or domestic tourism.
SAMENTA noted that Malaysia already has one of the highest numbers of public holidays in the region. It said adding unscheduled holidays could further affect productivity and competitiveness, particularly for SMEs, which form the backbone of the national economy.
Ng said businesses rely heavily on careful planning and scheduling, especially SMEs where every working day is crucial.
“When a holiday is suddenly declared, manufacturers may face contractual penalties and may need to pay triple wages to meet existing commitments,” he said, adding that sectors such as services, retail and food and beverage are also vulnerable due to disrupted delivery schedules and perishable inventory.
SAMENTA stressed that if certain festivities warrant a public holiday, they should be gazetted well in advance and included in the national calendar to allow businesses sufficient time to adjust manpower and operations.
The association also urged the government to amend Section 8 of the Public Holidays Act 1951 to limit the minister’s authority to declare ad-hoc holidays except in genuine national emergencies or major national milestones, such as the installation of a new Yang di-Pertuan Agong.
In addition, SAMENTA proposed introducing a minimum notice period of at least three months for any non-emergency additional public holiday to allow businesses to prepare operationally and fulfil contractual obligations.
Ng said the move would help rationalise the number of public holidays closer to what researchers describe as the “optimal” level and ensure Malaysia remains a competitive and predictable destination for business and investment.
“SMEs are ready to work hard to rebuild the economy, but the messaging is as important as the intent,” he said.
“Declaring additional holidays when businesses are struggling to survive sends the wrong signal, regardless of the intention.”
