TAIPEI: Several business groups in Taiwan have urged the government to introduce measures to mitigate the effects of four newly established national holidays on their operations. This appeal comes after the passage of a law that institutes the additional public holidays.

According to Focus Taiwan, the Taipei-based Chinese National Association of Industry and Commerce (CNAIC) acknowledged the importance of work-life balance for the public but expressed concerns over the challenges the increased holidays could present to domestic industries. The manufacturing and service sectors, along with numerous small-to-medium-sized businesses that depend on shift workers, could face difficulties in maintaining their cost structures due to heightened operational costs from paying higher overtime wages or adjusting workforce duties.

The CNAIC highlighted the risk of these extra financial burdens further exacerbating the competitiveness of companies during a period of global economic uncertainty. It called upon government agencies to provide essential support measures, such as tax incentives or subsidy programs, to help businesses manage the rising labor costs and to bolster support for industrial transformation.

Lin Por-fong, chairman of the Third Wednesday Association, a group of Taiwanese business leaders, supported the CNAIC's position by stating that additional holidays would inevitably increase operating costs. He warned that domestic businesses could incur significant losses this year, compounded by factors like the "reciprocal tariffs" from the United States, the appreciation of the New Taiwan dollar, and weak global consumer demand. Lin urged the government to alleviate the burden on local businesses by reducing import duties, specifically on raw materials.

Conversely, tourism operators have welcomed the additional holidays, anticipating a boost in both domestic and international travel demand. This could potentially expand the tourism market and yield positive effects for the industry. Benjamin Pien, general manager of Phoenix Tours Int'l, Inc., remarked that more holidays could only benefit the tourism sector, as shorter holidays are likely to boost domestic tourism, while longer breaks might encourage outbound travel.

The announcement was also positively received by Lion Travel and hotel operator FDC International Hotels Corp. Kuomintang (KMT) lawmaker Niu Hsu-ting praised the passage of the law, expressing gratitude to all involved, including independent lawmaker Kao Chin Su-mei and Taiwan People's Party Legislator Mai Yu-chen. However, Premier Cho Jung-tai expressed regret over the adjustment to Taiwan's national holidays and questioned the extent of consultation with industrial stakeholders during the bill's formulation. Despite this, he did not oppose increasing the number of holidays, citing Labor Day as a topic worth exploring due to its uneven observance among the population.

Separately, Taiwan Semiconductor Manufacturing Co. (TSMC) stated its respect for the new law, assuring that the increased number of holidays would not impact its operations.