Manufacturers face RM1bil loss if Sept 15 holiday not formalised: FMM
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim declared that Sept 15 would be observed as a public holiday in conjunction with Malaysia Day, with the Human Resources Ministry stating that employers must comply.
However, FMM said official confirmation via a gazette notification under the Holidays Act 1951 was still pending.
"This is critical to provide legal clarity and enable businesses to plan operations, workforce scheduling, and ensure compliance with the Employment Act 1955," the federation said in a statement.
FMM president Tan Sri Soh Thian Lai said last-minute declarations of public holidays disrupt tightly scheduled production timelines, export commitments and labour shifts, particularly in sectors that rely on continuous operations.
"Declaring Monday, Sept 15, as a holiday effectively creates a four-day disruption for many manufacturers, covering Saturday through Tuesday for shift-based and continuous operations. Such interruptions require production lines to stop and restart, which is both costly and inefficient," he said.
FMM estimated that each additional unplanned public holiday could result in up to RM1 billion in productivity and output losses for manufacturers.
The impact is especially severe for export-driven industries and those with continuous production lines, such as steel, food processing and chemicals.
Small and medium-sized enterprises, in particular, would struggle to absorb the added costs or manage overtime and replacement shifts, the group added.
"Frequent ad hoc holiday declarations do not augur well for a country striving to achieve high-income nation status and position itself as a competitive, reliable, and attractive destination for investment," it added.
FMM stressed the importance of policy clarity, consistency, certainty and credibility, noting that abrupt decisions could erode investor confidence and weaken Malaysia's standing in global supply chains.
While acknowledging the spirit behind the Malaysia Day celebration, the federation called on the government to expedite the official gazettement, providing immediate legal certainty and enabling businesses to mitigate operational risks effectively.
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