23-07-2025
- Business
- Free Malaysia Today
Groups warn of productivity losses from Sept 15 additional public holiday
The Malaysian Employers Federation said while it appreciates national celebrations and commemorations, such observances must be balanced with economic realities and the long-term competitiveness of Malaysian businesses.
PETALING JAYA : An employers' group and a business association have expressed concern over the impact the additional public holiday on Sept 15 may have on business operations.
In a televised address today, Prime Minister Anwar Ibrahim announced that Sept 15 would be designated as an additional public holiday in conjunction with Malaysia Day.
In a statement to FMT, the Malaysian Employers Federation said the extra public holiday warrants careful reconsideration because of its financial and operational impact as such holidays disrupt production schedules, logistics chains, and service continuity.
'This disruption results in lower output, delays in fulfilling delivery commitments, increased costs from rescheduling or deferring operations, and reduced overall productivity, especially for SMEs already operating on tight margins,' MEF said.
It also said additional public holidays translate to increased wage bills, with preliminary estimates suggesting that each extra holiday could cost Malaysian employers over RM1 billion collectively.
MEF said the practice of declaring ad hoc public holidays, often without broad stakeholder consultation, may affect Malaysia's image as a predictable and business-friendly destination.
Noting that investors seek clarity and certainty in policymaking, it warned that repeated instances of surprise public holidays risk undermining investor confidence, particularly among foreign investors.
'While MEF appreciates national celebrations and commemorations, such observances must be balanced with economic realities and the long-term competitiveness of Malaysian businesses,' it said.
In a separate statement, Small and Medium Enterprises Association (Samenta) president William Ng said that while he appreciates the symbolic importance of celebrating Malaysia Day, additional public holidays, especially those announced on short notice, can be disruptive for SMEs.
He said the added holiday would increase costs for SMEs in terms of lost productivity, overtime pay, and delivery delays.
'We urge the government to conduct impact assessments before declaring unscheduled holidays,' he said.
Ng also welcomed the encouraging economic indicators shared by Anwar in his address, particularly stronger GDP growth, improved global competitiveness rankings, and a more stable ringgit.
'However, we urge the government to ensure that the benefits of this growth are meaningfully felt by the SME sector, which continues to face persistent challenges in accessing financing, addressing labour shortages, and adapting to rising operational costs,' he said.
He also called for greater support to help SMEs manage cost pressures, particularly through wage subsidies, targeted tax relief, and automation grants.
Earlier today, human resources minister Steven Sim said employers must comply with the declaration of the additional public holiday in conjunction with the Malaysia Day celebration.
Bernama reported him as saying employers could observe the additional public holiday and pay regular salaries, or instruct their employees to work and pay them according to the public holiday rates.
'Employers can also opt to give a replacement holiday on another day if their employees are required to work on that public holiday,' he said.
