Kuala Lumpur, 16 March 2026, The SME Association of Malaysia (SME Malaysia) had expressed its support for the government’s decision to declare an additional public holiday in conjunction with Aidilfitri, while urging greater collaboration between government agencies and the industry to address more urgent economic challenges facing small and medium enterprises.

The announcement, made by Prime Minister Datuk Seri Anwar Ibrahim, aimed to facilitate travel for the public during the festive season, reduce travel pressure, and ensure smoother Aidilfitri arrangements, with the actual holiday date subject to the declaration of 1 Syawal.

From the perspective of businesses, particularly SMEs, any public holiday announced close to the date could affect manpower planning, production schedules, deliveries, and business commitments. SME Malaysia acknowledged that such concerns were understandable. 

However, many employees had already planned leave and travel, and businesses had anticipated the possibility of the arrangement. While the decision may not have been fully welcomed by every business operator, the association noted that the government had taken into account multiple factors, including national considerations, festive needs, and practical arrangements for the public.

SME Malaysia’s National President had emphasised that the matter should be approached in a practical, mature, and constructive manner. The association also noted that future policy decisions affecting business operations would benefit from stronger communication and engagement between the government and the business community to improve coordination and predictability.

The statement highlighted that the country and SMEs were facing challenges that went far beyond a single additional public holiday. These included rising logistics costs, volatility in raw material prices, supply chain instability, transportation delays, business cash flow pressure, and wider uncertainties stemming from ongoing tensions in West Asia. SME Malaysia urged all parties to shift attention to addressing these critical economic issues rather than becoming preoccupied with the festive public holiday.

The association further stressed that tackling the current complex situation required coordination and collaboration across ministries, agencies, and government institutions. It called for closer engagement between relevant government bodies and industry groups to better understand business pressures and implement more effective policy responses in areas such as financing support, export facilitation, logistics, cost mitigation, talent, and market access.

SME Malaysia expressed that practical, timely, and well-coordinated implementation, supported by stronger communication and cooperation between government agencies and industry players, would help SMEs sustain operations, preserve jobs, and strengthen market confidence.

SME Malaysia had backed the Prime Minister’s decision on the additional Aidilfitri public holiday, while urging the government to focus greater attention on the real economic pressures faced by SMEs and micro enterprises, and to drive deeper collaboration across ministries, agencies, and the industry. The association affirmed that such efforts would better equip Malaysian SMEs to withstand external shocks and continue contributing to the nation’s economy, employment, and social stability.