Malaysians hit back as McDonald’s franchisee sues over Israel boycott: ‘lost a customer for life’

Malaysian social media users have come out in defence of a consumer movement to boycott McDonald’s and other businesses perceived to be supportive of Israel
One sore point among the public is the lawsuit’s demand of more than US$300,000 from BDS Malaysia to compensate for the termination of McDonald’s staff over the boycott

Malaysia

Hadi Azmi

Published: 6:50pm, 1 Jan 2024

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A lawsuit by a McDonald’s franchisee in Malaysia against a pro-Palestinian boycott movement risks backfiring, after social media users erupted in defence of the consumer embargo of the fast-food chain, in a country where anger is surging at Israel’s unrelenting bombardment of Gaza.

Gerbang Alaf Restaurants, the local licence holder of McDonald’s, filed a suit on December 19 at a Kuala Lumpur court alleging the boycott, divest and sanction movement (BDS Malaysia) had “incited public hatred” against the brand and damaged its business.

The company is seeking US$1.31 million in damages.

McDonald’s Malaysia sues pro-Palestine group for spurring boycott calls

The legal move comes after the fast-food chain fell under the cross hairs of a popular consumer boycott in Malaysia, targeting businesses deemed to be supportive of Israel, although many of those – including Gerbang Alaf Restaurants – have insisted they have no links to Israel and in fact back the Palestinian cause.

McDonald’s is one of the hardest hit by the global boycott after a sister business in Israel provided free meals to Israeli soldiers in the days after the October 7 Hamas raid sparked the conflict.

So far, Israel has slaughtered more than 20,000 Palestinians – the majority civilians – while more than 1,100 Israelis died in the bloody Hamas assault.

But the move to sue the Malaysian chapter of the boycott movement has been met with scorn across Malaysia’s vituperative social media in a nation with a long history of backing the Palestinian cause.

“Boycotting companies like these is a personal choice and it is up to that individual consumer,” said Sheryl Ho from the Muda party. “That being said, anyone in their right frame of mind who wasn’t boycotting [McDonald’s] before this, sure would be doing it now.”

Others said their decision to boycott came from their own conscience over what they saw unfolding in Gaza and was not the result of any call to boycott.

McDonald’s “have lost a customer for life, not just for this boycott”, said another post on X.

A Starbucks outlet in Kuala Lumpur. In December, a major Malaysian bank advised investors to sell their holdings in the local licence-holder of American coffee chain Starbucks. Photo: Azneal Ishak

A particular sore point among the Malaysian public is the company’s demand of 1.5 million ringgit (US$326,000) from BDS Malaysia to compensate for the termination of the fast food chain’s employees as a result of the three-month-long boycott.

“They terminated their staff to save cost and they are making other people pay for it?” asked X user Syafiq Fadli.

In a sign of the cuts the boycott has made into big brand business, a major Malaysian bank in December advised investors to sell their holdings in the local licence-holder of American coffee chain Starbucks, saying a boycott of the coffee chain could last longer than initial expectation as a near-term resolution to the conflict is still hazy.

Inspired by the South African anti-apartheid movement, the BDS movement is a global effort to put non-violent pressure on Israel to comply with international law by boycotting, divesting and sanctioning the country and entities that support it.

Protesters hold mock bloodied baby corpses and placards during a rally near the US embassy in Kuala Lumpur, Malaysia, on December 22, 2023 in support of the Palestinian cause. Photo: EPA-EFE

The global movement’s website, however, does not list McDonald’s – or Starbucks – as a targeted business, saying that the repeated calls to boycott the brand are part of an organic movement by the public.

It said, however, that it supported these efforts “due to these brands openly supporting Israel’s genocide against Palestinians”.

Meanwhile, in Kuala Lumpur, more than 200 people camped out near the gates of the US embassy ushered in the new year with calls for a ceasefire as part of a six-day sit-in against Washington’s support for the blanket bombing of Gaza and blocking of efforts to reach a permanent ceasefire at the United Nations.

Calling for “decisive actions” to be taken against Washington, former prime minister Mahathir Mohamad told the protest that the US was the sole reason why the conflict had continued since the ceasefire resolution was vetoed by its representative in the UN.

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Malaysia’s leader condemns Israel over Gaza strikes as thousands attend pro-Palestinian rally

Malaysia has been one of the most vocal countries to speak up on behalf of the Palestinians and has been open about its support for Hamas, refusing Western pressure to denounce the Qatari-backed group as a terrorist organisation.

In November, Prime Minister Anwar Ibrahim raised Malaysia’s stance to US President Joe Biden at the Apec summit in San Francisco, saying he “must tell the truth” to the top world leader.

“I emphasise the need for all countries to press for a ceasefire in Gaza so that there will be no further loss of civilian lives, especially infants,” Anwar said in a leader’s retreat chaired by Biden. “Stop the atrocities in Gaza; stop it now.”