Yes, the staff is entitled to another holiday. But the easiest way is to treat MC as cancelled.

How to treat MC as cancelled?

Just don't record that day's sick leave will do. His sick leave entitlement will not be reduced.

Hi Admin,
    Good day to you.
    It's regarding to our company new sick leave policy. Company appointed some new panel doctor, and set new policy that employee must get medical certificate from appointed panel doctor ONLY. For those medical certificate that NOT issued from appointed panel doctor ALL will consider as unpaid leave, employee will not entitle to cliam either medical leave or any medical cost from company.
    It's this policy legal in malaysia labour law? And employee must follow this new policy?

Thank you

Read up Part 12 of the Employment Act on Sick Leave for more information.

a) I have 4 days MC continuously that is from Friday, Saturday, Sunday and Monday where Monday is Public Holiday,

Should I entitle a replacement of Public Holiday for that Monday?

What if Public Holiday falls on Sunday in the above example, will I still get the replacement of Public Holiday?

b) I admitted in hospital for 20 days.  There is 1 Public Holidays in this 20 days period. Will I get the replacement also?

The section of the Employment Act quoted below may be helpful to you:

60D(1B) Where any of the public holidays or any other day substituted therefor as provided in subsection (1) or (1A) falls within the period during which an employee is on sick leave or annual leave to which the employee is entitled under this Act, or falls during the period of temporary disablement under the Workmen¡¦s Compensation Act, 1952, or under the Employees Social Security Act 1969, the employer shall grant another day as a paid holiday in substitution for such public holiday or the day substituted therefor.