Last-minute public holidays hurt SMEs, economic growth, says Sarawak business group

KUCHING (March 17): The Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) has voiced strong concern over the frequent practice of declaring ad-hoc public holidays, backing calls by the Small and Medium Enterprises Association (Samenta) for a more disciplined and consultative approach.

It warned that repeated last-minute holiday declarations could undermine business confidence and long-term economic growth, stressing that effective economic management requires careful planning, not impulse decisions.

ACCCIS Assistant Secretary-General Dato Jonathan Chai told The Borneo Post that sudden holiday announcements create uncertainty for businesses, particularly small and medium enterprises (SMEs) that form the backbone of the economy.

He warned that such unpredictability undermines planning, disrupts supply chains, and imposes avoidable costs.

“These are not minor inconveniences. Companies face contractual risks, delivery penalties, increased wage liabilities, and operational inefficiencies that directly affect productivity and profitability.

“For many SMEs, repeated disruptions of this nature are simply not sustainable,” he said.

While public holidays are culturally and socially important, he emphasised that economic discipline and policy consistency must not be compromised.

He called for immediate measures, including ending arbitrary holiday declarations, introducing a clear policy framework announced well in advance, institutionalising stakeholder consultation, and safeguarding business continuity through mechanisms such as replacement days or sectoral flexibility.

Chai said ACCCIS’ stance aligns with Samenta, which previously described “surprise” public holidays as an “unhealthy economic habit” that places financial strain on businesses.

“Consistency, transparency, and discipline are essential if Malaysia is serious about competitiveness and growth,” Chai said in support of Samenta’s call.

In a report by The Malay Mail on Monday, Samenta national president Datuk William Ng highlighted the impact on manufacturers, who may face penalties and pay triple wages, as well as the services, retail, and food-and-beverage sectors, where perishable stocks and delivery schedules are disrupted.

Ng also cited research from the Centre for Future Labour Market Studies (EU-ERA), which recommends an “Optimal 10” rule, noting that economic productivity peaks at around 10 gazetted holidays per year.

Exceeding this number, particularly with unscheduled holidays, leads to diminishing returns, he said.

Samenta has urged the government to amend the Public Holidays Act 1951 to restrict ministerial powers to declare ad-hoc holidays to genuine national emergencies or major events, and to introduce a minimum three-month notice period for non-emergency holidays, Ng stressed.