Economists say the extra Hari Raya Aidilfitri holiday will not significantly impact Malaysia’s economy and may even boost sectors like F&B and tourism.

PETALING JAYA: Economists have said Malaysia’s extra Hari Raya Aidilfitri public holiday is unlikely to derail the economy, despite worries over short notice and business disruption.

Experts said the one-day holiday is manageable for businesses and may even boost certain sectors.

Putra Business School masters and doctorate course director Prof Dr Ahmed Razman Abdul Latiff said such special holidays are rare and unlikely to dent overall productivity.

“I do not see any significant negative impact on the country’s productivity or economic performance because special holidays such as this do not occur frequently each year and it is only for one day.

“Moreover, businesses could already anticipate that such a situation may happen.”

He added that arguments over Malaysia having more public holidays than other countries may not reflect current labour realities.

“I think the argument is less relevant because although we have many public holidays, Malaysia still records positive economic growth every year. Furthermore, with flexible working arrangements such as work-from-home, the effect of additional holidays is now less significant.”

He also said extra holidays could boost certain sectors, particularly food and beverage, and tourism.

Meanwhile, Universiti Sains Islam Malaysia human resource management expert Assoc Prof Dr Abdul Rahim Zumrah said last-minute announcements could pose challenges for businesses, but the impact is manageable.

“I agree that last-minute public holiday announcements could disrupt business planning and increase labour costs for SMEs.” However, he said, the announcement was made on Sunday.

“SMEs still have time to revise their planning because the holiday is only one day,” he told theSun.

He added that productivity concerns should be viewed in context.

“It should not be an issue regarding the current number of public holidays each year.

“Normally, public holidays only last for a maximum of two days. The additional days are under organisational planning. Organisations could still maintain productivity because they can plan their manpower during festive periods.”

He also said there is no immediate need to amend the Public Holidays Act 1951, although earlier announcements could help businesses prepare better.

“In my opinion, there is no need to amend the current Public Holidays Act 1951 because the additional holiday given by the government is under its authority.”

Rahim added that short-notice extra holidays do not happen frequently and usually only occur during festive seasons.

However, he said it would be better if the government announced such holidays earlier, perhaps a month in advance, to balance business predictability and worker welfare.

From a work-life balance perspective, Universiti Teknologi Malaysia human resource management and social science expert Prof Dr Siti Aisyah Panatik said unexpected rest days could also benefit employees’ wellbeing.

“Unexpected rest days provide employees with valuable time to recover from work stress, which may improve morale and reduce burnout.

“Over time, better-rested employees tend to be more engaged and productive.”

 The Sun Malaysia