FMM Warns Ad Hoc Public Holiday Could Cost Manufacturers RM1 Billion

KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) has warned that declaring September 15 as an additional public holiday could result in productivity and output losses of up to RM1 billion for the manufacturing sector. FMM President Tan Sri Soh Thian Lai said sudden holidays create major disruptions for manufacturers, particularly export-oriented industries with continuous operations like steel, food processing, and chemicals.

“Such interruptions require production lines to stop and restart, which is both costly and inefficient,” he stressed.

FMM urged the government to “immediately issue the official Gazette notification” under the Holidays Act 1951 to provide legal clarity and enable businesses to plan workforce scheduling and comply with the Employment Act 1955.

“Policy announcements must reflect clarity, consistency, certainty, and credibility,” Soh added. “Frequent ad hoc holiday declarations do not augur well for a country striving to be a competitive, reliable investment destination.”

FMM advised employers to monitor gazettement updates and adjust production schedules accordingly.