THE recent government announcement of an additional public holiday for Aidilfitri has drawn concern from Malaysia’s business community, with employers warning that it will place a considerable financial burden on companies.
The Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said the move directly affects operational expenditure, particularly in the private sector, as businesses remain obliged to pay employees despite halting operations.
"The declaration of this additional public holiday directly increases costs for employers because workers' wages must still be paid even when operations are closed," he told Utusan Malaysia.
For companies that continue to operate during the public holiday, the financial impact is even greater.
Employers must comply with the Employment Act 1955, which mandates payment of double or triple the daily wage rate for staff working on a public holiday.
"For companies that need to continue operations, employers must bear higher wage payments for staff working on the public holiday," Syed Hussain added.
Prime Minister Datuk Seri Anwar Ibrahim recently announced that the extra Aidilfitri holiday will fall on either Friday or Monday, depending on the official date of 1 Syawal.
While the move is welcomed by employees, Syed Hussain noted that the short notice of the announcement has created challenges for businesses that had already finalised operational schedules and manpower planning in advance.
Employers argue that such last-minute adjustments can disrupt production timelines, service delivery, and workforce management, adding strain to both financial planning and operational continuity.
The MEF’s comments underline the delicate balance between recognising cultural celebrations and maintaining business efficiency in Malaysia’s private sector. - - March 17, 2026
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