Sunday, 10 February 2008

Malaysia's holiday bonanza no fun for business

By Ivy Sam
Agence France-Presse
02/10/2008

KUALA LUMPUR--It's Chinese New Year and Malaysia's capital is deserted once again as citizens enjoy one of the many holidays observed by a nation with an array of races and religions.
But the nonstop stream of festivals, which began last October when Muslims celebrated the end of the fasting month, is being met with grumbles from business and industry who say the nation cannot afford all the merry-making.

After Malaysia's majority Malays celebrated Eid al-Fitr, it was the Hindus' turn with the Diwali festival of lights, then Christmas, followed by traditional New Year and now Lunar New Year.

"I can't get anything done!" laments lawyer Karen Lynn Johnson, who is frantically preparing for her upcoming nuptials. "Every supplier I call comes back to me with the same reply: wait until after Chinese New Year."

Malaysia's ethnic Chinese community dominates business and the long holiday weekend saw a lull at construction sites, shopping malls and restaurants as city-dwellers flooded the highways to return to their home villages.

"For business people it is never in their interests as it affects sales and trading," said M. Vivekananda from the Malaysian Employers' Federation.

"Our stand has always been that public holidays should not inhibit business activities. The markets should be kept open."

Business people complain that sales figures drop, trading on the bourse is halted and manufacturers who need to keep their factories open have to pay hefty overtime and triple holiday rates.

"Not only is it expensive, it disrupts the production of goods and sometimes deadlines cannot be met because there is not enough manpower," Vivekananda said.

Malaysia, Southeast Asia's third-largest economy, has 16 national holidays when the stock market, banks, schools and businesses are closed.

In addition, each state has its own set of holidays, so residents of central Selangor state which governs much of the capital Kuala Lumpur are generally entitled to four or five additional holidays.

As if that weren't enough, Prime Minister Abdullah Ahmad Badawi last month declared the colourful Hindu festival of Thaipusam a public holiday just a few days beforehand, sending people scrambling to shift functions and events.

There are no figures on the costs involved, but in February last year exports shrank 14.41 percent to 41.1 billion ringgit ($4.24 billion) compared with the previous month due to "shorter working days and festivities", according to government data.

"On the stock market millions of ringgit in business transactions are lost and we miss the opportunity to make money. This could affect our market's performance," said businessman Michael Chiam.

"But this is how it is here, everyone gladly celebrates every festival together," said Chiam, a shipping merchant who chairs the Commercial Employers' Association of Peninsular Malaysia.

Singapore, the rich neighbouring city-state which has the same racial mix as Malaysia, has a modest 11 public holidays, in line with the norm in many developed nations like the United States and Britain which both have 10.

On the other end of the scale, impoverished Cambodia has the region's highest number of holidays at 26. Indonesia meanwhile cut three of its 23 holidays this year to boost the economy amid fears of a global slowdown.

However, Malaysian political economist Charles Santiago argues that holidays are an important stress buster for the overworked.

"Private businesses feel there are too many holidays and therefore not helpful but rested workers can also provide better productivity and benefit the economy in the long term," he said.

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