KUALA LUMPUR, March 16 — The Small and Medium Enterprises Association (Samenta) has urged the government to stop declaring “surprise” public holidays, calling it an “unhealthy economic habit” that places a significant financial strain on businesses.

The call comes in response to the prime minister’s announcement yesterday of an additional public holiday for the upcoming Hari Raya Aidilfitri celebration.

In a statement, Samenta national president Datuk William Ng said the recurring trend of announcing holidays on short notice imposes avoidable costs on businesses, particularly small and medium enterprises (SMEs) already grappling with a volatile economy.

“Businesses are built on the ability to plan,” Ng said.

“When a holiday is declared suddenly, manufacturers face penalties and must pay triple wages to meet existing contractual obligations. The services, retail and F&B sectors are especially vulnerable, as perishable stocks or delivery schedules are disrupted.”

Ng cited research from the Centre for Future Labour Market Studies (EU-ERA), which proposes an “Optimal 10” rule for public holidays.

He said the study found that economic productivity peaks at around 10 gazetted holidays per year, and exceeding this number leads to diminishing returns due to disruptions and higher manpower costs.

“Malaysia already observes one of the highest numbers of public holidays in the region. By adding unscheduled days, we are pushing our economy further down the curve of diminishing returns,” he argued.

To address the issue, Samenta called on the government to review and amend the Public Holidays Act 1951.

Specifically, the association urged the government to amend Section 8 of the Act to restrict the minister’s power to declare ad-hoc holidays, limiting it to genuine national emergencies or major events like the installation of a new Yang di-Pertuan Agong.

Samenta also proposed institutionalising a minimum notice period of at least three months for any non-emergency additional holidays to allow businesses to plan accordingly.

“SMEs are ready to work hard to rebuild our economy, but we need the government to understand that the messaging is as important as the intent,” Ng said.

“Declaring additional holidays when we are fighting to survive is the wrong message, regardless of the intent.”