19-3-2024 (KUALA LUMPUR) In a pivotal development that could potentially defuse the escalating tensions between the global fast-food giant and the boycott Israel movement, lawyers representing McDonald’s in Malaysia have sought to negotiate a settlement with the consumer campaign group. This move comes in the wake of a US$1.27 million lawsuit filed by the fast-food chain against the Malaysian arm of the boycott, divestment, and sanctions (BDS) movement, alleging that the group’s actions incited a boycott, leading to substantial financial losses and job cuts.
The mediation hearing, held on Monday in a Kuala Lumpur court, marked the first attempt to reach an amicable resolution and avoid a protracted civil suit, which was initiated against BDS Malaysia last December. Gerbang Alaf Restaurants, the Malaysian licence holder of the McDonald’s brand, had claimed that the BDS movement’s alleged incitement of the public to boycott its business resulted in losses amounting to 6 million ringgit (US$1.27 million).
Reza Hassan, the lawyer representing BDS Malaysia, acknowledged the positive tenor of the ongoing mediation process, though he refrained from divulging specific details due to confidentiality concerns. “It hinges on one or two things only,” Reza stated, underscoring the delicate nature of the negotiations.
In contrast, representatives from McDonald’s opted to maintain a discreet silence, refraining from engaging with the press. However, both parties have agreed to reconvene on April 30 to continue their discussions, signaling a potential breakthrough in the legal impasse.
The crux of the dispute lies in McDonald’s Malaysia’s assertion that the boycott movement’s actions amounted to slander, implying that the fast-food chain had profited from the assault on Palestinians and conspired with Israel. This accusation stems from the widespread circulation of videos on social media, depicting McDonald’s in Israel donating free food to the Israel Defence Forces (IDF) in the aftermath of the October 7, 2023, Hamas incursion into Israeli territory.
The incursion, which claimed the lives of over 1,200 Israelis and resulted in scores of hostages being taken into Gaza, prompted a devastating retaliation from the IDF, effectively obliterating most of the enclave over the past five months. According to the Hamas-run health authority in Gaza, the Israeli strikes have claimed the lives of over 30,000 people, the vast majority of whom were civilians.
The United Nations has sounded the alarm, warning that vast numbers of Palestinians are teetering on the brink of starvation if aid continues to be blocked by Israel.
Undeterred by McDonald’s Malaysia’s denial of contributing to or engaging in any political or religious conflict, including the Israeli-Palestinian conflict, supporters of BDS Malaysia have taken to the streets, carrying effigies of dead Palestinian children and chanting slogans outside the courthouse. Placards denouncing McDonald’s and the ongoing genocide have become a familiar sight during the protests.
Norshiha Saidin, a representative of a welfare group aligned with the boycott movement, expressed bewilderment at McDonald’s decision to sue the movement and the boycotting Malaysian public. “We decide on how to spend our money, and no corporation can force us on how to spend our money,” Norshiha emphatically stated to This Week in Asia.
The boycott against Israel-affiliated businesses in Malaysia has extended beyond the American fast-food icon, with the local Starbucks chain reporting a staggering 38 percent year-on-year decline in revenue, plummeting to 182.55 million ringgit in the October-December quarter, compared to 295.32 million ringgit during the same period in 2022.
The pleas of Vincent Tan, the business mogul owner of the Starbucks franchise, for the public to cease their boycott have been met with ridicule, as the enraged Muslim Malaysians reject calls to abandon one of the few direct actions available to them in response to the Israeli assault on Gaza.
The boycott has even extended to Israeli dates, a popular food consumed during the Islamic month of Ramadan to break the fast. Malaysians have been warned about the alleged mislabelling of the sweet fruits imported from Israel for local sale, prompting their inclusion on the boycott list.
Last December, Malaysia announced an immediate ban on vessels owned by the Israeli shipping giant Zim from docking and unloading cargo at its ports, along with any ship bearing the Israeli flag.
Prime Minister Anwar Ibrahim, seeking to garner the approval of an increasingly vocal Muslim electorate, has been among the loudest critics of Israel’s assault on Gaza. Last week, he made “no apologies” for maintaining diplomatic links with Hamas, despite Western pressure to denounce the militant group.
