Samenta warns last-minute holiday declarations strain SMEs, urging review of Public Holidays Act.
PETALING JAYA: The Small and Medium Enterprises Association Malaysia (Samenta)has blasted the growing trend of last-minute public holiday announcements, warning that “surprise” days off are disrupting operations, just as companies are grappling with rising costs and a volatile economic environment.
Its national president Datuk William Ng urged the government to review the Public Holidays Act 1951 to curb discretionary holiday declarations, describing the practice as economically harmful — particularly for SMEs, which form the backbone of the national economy.
Ng acknowledged the government’s intention to recognise the hard work of Malaysians during Ramadan by granting additional holidays for Hari Raya Aidilfitri, but said the current “ad-hoc” approach imposes avoidable financial strain.
“SMEs are already grappling with rising operational costs and a volatile global economic climate.
“Declaring extra holidays on short notice only compounds these pressures,” he said in a statement today.
He explained that SMEs rely on predictability to plan production, manpower allocation, and delivery schedules.
Sudden holidays, he said, can disrupt carefully orchestrated operations.
“Manufacturers may face late-delivery penalties or pay higher wages to meet obligations, while service sectors such as retail and food and beverage risk losses from perishable stock or disrupted logistics.”
Malaysia, he said, already has one of the highest numbers of public holidays in the region, and unscheduled additions push the economy further into diminishing returns.
“If certain festivities are significant enough to warrant a holiday, they should be gazetted well in advance and incorporated into the national calendar.
“This allows businesses to plan manpower and operations without incurring unexpected losses,” he said.
Samenta is calling for a review and amendment of Section 8 of the Public Holidays Act 1951, which currently gives the minister discretion to declare additional holidays.
Ng proposed restricting this power to genuine national emergencies or major milestones, such as the installation of a new Yang di-Pertuan Agong, and instituting a minimum three-month notice for any non-emergency holidays.
“SMEs are ready to work hard to rebuild the economy.
“But declaring additional holidays while businesses are struggling to stay afloat sends the wrong message, regardless of the intention.”
The Sun Malaysia
