Malaysia could reach the best balance between worker well-being and economic productivity with about 10 official public holidays a year, according to findings cited by the Centre for Future Labor Market Studies.
According to NST, the Small and Medium Enterprises Association (Samenta) has urged the government to review the current practice of announcing ad hoc public holidays, warning that frequent last-minute declarations may affect the country’s gross domestic product (GDP).
Samenta said the increasing trend of sudden holiday announcements is placing financial pressure on businesses, especially as companies face rising operating costs and global economic uncertainty.
Businesses face operational disruptions
Samenta president Datuk William Ng said Malaysia already has a relatively high number of public holidays, and adding unexpected ones can disrupt operations for many companies.
He explained that manufacturers may have to pay triple wages or face penalties if they fail to meet contractual deadlines after sudden holiday announcements.
Ng added that sectors such as services, retail, and food and beverage are especially affected because of perishable stock and delivery schedule disruptions.
Call for earlier planning and policy review
Ng said if certain celebrations are considered important enough to be public holidays, they should be gazetted earlier and included in the national calendar.
This would allow businesses to organise manpower, production schedules, and logistics more efficiently.
Samenta has also proposed that the government review and amend the Public Holidays Act 1951, particularly Section 8, which allows the minister to declare additional public holidays.
The association suggested that ad hoc holidays should only be used for major national events or emergencies.
Proposal for notice period
Samenta also recommended implementing a minimum three-month notice period for any non-emergency additional holidays.
The group said a more predictable holiday calendar would help businesses plan better and reduce unexpected financial losses, while also strengthening Malaysia’s reputation as a stable destination for investment and business operations.
