15-11-2023 (KUALA LUMPUR) The food and beverage businesses of several well-known Malaysian franchises, including KFC, McDonald’s, and Starbucks, are experiencing a significant downturn as Malaysian consumers launch boycotts over perceived connections to the ongoing Israel-Hamas conflict. According to reports from The News Straits Times (NST), these establishments have witnessed a decline in customers and revenue.
One major concern is the impact on local workers employed by the targeted companies. McDonald’s Malaysia, in response to social media discussions about McDonald’s Israel donating free meals to the Israeli Defence Forces (IDF), emphasized that the actions of McDonald’s Israel do not reflect the values and practices of McDonald’s Malaysia, asserting that it operates as an independent market.
Malaysian Member of Parliament RSN Rayer raised the issue, highlighting that a prolonged boycott could jeopardize the jobs of over 18,000 employees within the targeted businesses. Deputy Minister Fuziah Salleh and Malaysian Employers Federation President Syed Hussain Syed Husman echoed these concerns, emphasizing that many foreign brands in Malaysia are locally owned.
Economist Nuradli Ridzwan Shah Mohd Dali urged consumers to research the brands they are boycotting to avoid “collateral damage” and cautioned against unfounded accusations regarding Malaysian-owned franchises supporting Israel. Despite the financial impact being deemed minimal on a global scale, local franchisees and their stakeholders are expected to bear the brunt.
Geoffrey Williams, an economist at the Malaysia University of Science and Technology, noted that international franchises are unlikely to be significantly affected, emphasizing the potential harm to local franchisees and employees. Nusantara Academy Senior fellow Azmi Hassan highlighted that Malaysia’s contribution to products supporting Israel is already “insignificant.”
Nuradli suggested that a boycott could stimulate demand for local products and businesses, offering alternatives to international brands. While the Malaysian government supports Palestine, it acknowledges individuals’ right to decide whether to support, boycott, or take other actions based on their interpretation of the situation.
