Kota Kinabalu: Businesses are not the only ones unhappy over the sudden declaration of an additional public holiday on the eve of Malaysia Day on September 16 by Prime Minister Datuk Seri Anwar Ibrahim.
Even Sabah politicians who have been in the forefront of regaining Sabah's rights in the Malaysia Agreement they claim have been ignored over the decades by Federal are not amused.
They said the Sept. 15 holiday is not necessary.
Deputy Chief Minister I Datuk Seri Dr Jeffrey Kitingan from Star and Deputy Chief Minister II Datuk Seri Dr Joachim Gunsalam of PBS both disagreed with the move.
“Personally, I feel Malaysia, especially Sabah, has too many holidays already,” Dr Gunsalam, who is Parti Bersatu Sabah President, said.
Dr Jeffrey said Malaysia Day is already a national holiday and there is no need to declare another day on Sept. 15.
“For Sabah and Sarawak at this juncture, we want the Malaysia Agreement 1963 and its rights under the Constitution to be fully implemented.
“That should be the priority,” he said.
Sabah Progressive Party (SAPP) President Datuk Seri Yong Teck Lee also said the extra day is unnecessary.
Cuepacs Executive Laurence Vun said any holiday would be welcomed by workers but felt a holiday on the eve of Malaysia Day might not help the spirit of Malaysia.
“I don’t think an additional holiday would bring any significance to the meaning of Malaysia Day.
“For Sabahans and Sarawakians, we feel Malaysia Day should be marked to make all Malaysians equal in every sense of the word – in our civil service as well as all sectors of government and private enterprise,” said Vun.
Employers must comply with the declaration of additional public holiday in conjunction with this year’s Malaysia Day celebration, Human Resources Minister Steven Sim Chee Keong had said.
He said employers could observe the additional public holiday and pay the regular salary, or instruct their employees to work and pay 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.
“To ensure the implementation of the additional public holiday is fair and organised, the Department of Labour (JTK) is prepared to provide advisory services as well as answer any queries from employers and employees regarding the implementation of this additional public holiday,” he said.
The implementation of the additional holiday is subject to provisions under Section 60D(1) of the Employment Act 1955 (Act 265) for Peninsular Malaysia and the Federal Territory of Labuan; the Sabah Labour Ordinance (Chapter 67), the Sarawak Labour Ordinance (Chapter 76) and the Holidays Act 1951 (Act 369) as the basis for the announcement of the official additional holiday by the government.
Employers or employees requiring further information can contact the JTKSM via its hotline at 03-8886 5192 / 5937, by email at jtksm@mohr.gov.my, or at any nearby JTK offices.
An employers’ group and a business association expressed concern over the impact the additional public holiday may have on business operations.
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.
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.
The Federation of Malaysian Manufacturers (FMM) has called on the government to urgently gazette the September 15 public holiday to provide legal clarity to employers.
The additional holiday has triggered concerns within the manufacturing sector over compliance and planning, the group said.
FMM said many businesses remain unclear whether the holiday falls under Section 8 or Section 9 of the Holidays Act 1951, which would affect their obligations under the Employment Act 1955.
“This is critical to provide legal clarity and enable businesses to plan operations, workforce scheduling, and ensure compliance with the Employment Act 1955,” said FMM president Tan Sri Soh Thian Lai.
The group warned that manufacturers operating on shift-based or continuous cycles face higher risks from such unplanned disruptions.
The four-day stretch from Saturday to Tuesday may force production lines to halt and restart, which FMM said would be inefficient and costly.
It added that the cascading effects on supply chains, logistics and delivery timelines would be especially difficult for small and medium-sized enterprises (SMEs) to manage.
FMM advised employers to prepare buffer stock, adjust schedules, and communicate with workers, customers and suppliers to minimise operational risks.
The group also reminded businesses to monitor the gazette and consider using the substitution option under Section 8, if applicable.
It then reiterated its view that “policy announcements must reflect clarity, consistency, certainty, and credibility,” adding that ad hoc decisions could undermine Malaysia’s attractiveness to investors.
