Malaysian anti-Israel boycott rocks incomes of Western brands

A Malaysian protester wears a “Boycott Israel” t-shirt at a rally in Kuala Lumpur on Feb. 10, 2024. (BDS Malaysia)
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Updated 02 March 2024
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Malaysian anti-Israel boycott rocks incomes of Western brands

  • After five months of boycott, Starbucks Malaysia says that it does not support Israel’s army
  • McDonald’s sues the Malaysian chapter of Boycott, Divestment and Sanctions movement

Kuala Lumpur: Leading brands in Malaysia accused of Israeli links have been reeling from falling revenues amid a local boycott of their goods, with the movement behind it vowing to continue over Israel’s war on Gaza.

Israeli airstrikes have since October killed more than 30,000 in the densely populated Palestinian enclave — a large majority women and children. More than 70,000 have been injured, while thousands of others remain missing under the rubble.

Since the outbreak of the attacks, many Malaysian citizens have backed a growing refusal to buy products from Western companies that they say are aiding Israel or facilitating its invasion of Gaza.

The latest of the brands to publicly admit the pinch in the Muslim-majority Southeast Asian country was the US-origin coffee chain Starbucks, with its Malaysian parent company Berjaya Foods blaming a near 40 percent drop in revenue on the boycott.

In a mid-February filing on the Malaysian stock exchange, it reported a revenue of 182.55 million ringgit ($38.47 million) for its second quarter ending Dec. 31, down from 295.32 million ringgit ($62.23 million) for the same period the year before.

In an Instagram post a week later, Starbucks Malaysia said that the boycott had led to “acts of violence and vandalism” in some of its 400 stores with some of its staff assaulted. It did not, however, give any examples or evidence.

This week, the chain issued a statement saying it has no stores in Israel and it does not provide financial support to the Israeli government or army.

“Despite false statements spreading through social media, we have no political agenda. We do not use our profits to fund any government or military operations anywhere — and never have,” the company said.

But the denial of links with Israel did not seem to satisfy Malaysian anger on social media, with users demanding that the company show a more unequivocal stand.

The coffee chain was not listed as one of the official targets by the Malaysian chapter of the Boycott, Divestment and Sanctions movement, which calls for economic and trade pressure in opposition to Israel.

But a few of BDS Malaysia’s Facebook posts have shared content related to the boycott of the company.

Starbucks’ developments in Malaysia followed a claimed loss of profits and job cuts by the McDonald’s franchise, with the fast-food chain seeking $1.26 million in damages from BDS Malaysia.

Some of the other popular brands BDS Malaysia has listed are Burger King, Puma, Airbnb, and McDonald’s.

While the movement’s representatives will meet McDonald’s in a Malaysian court on March 18, BDS chairman Mohd Nazari Ismail told Arab News they were not going to back down from the challenge by the business.

He said that the group was only going to end its campaign in line with the worldwide movement’s demands, which are to stop Israel’s colonization of Palestinian land, end discrimination against Palestinian citizens, and give Palestinian refugees the right to return to their homes.

“We don’t plan to stop our boycott campaign of McDonald’s because it has provided food to Israeli soldiers,” Nazari said.

“We will continue to call for the boycott of Israel and companies that are complicit with the atrocities and injustice committed by Israel.”

Malaysia has no formal relations with Israel, has long been supportive of the rights of Palestinians and their struggle for a sovereign statehood, and bars Israelis from entering its territory.

In December, the Southeast Asian nation barred Israeli and Israel-bound ships from docking at its ports.


Somali president to Asharq Al-Awsat: Working with Saudi-led partners to void Israel’s Somaliland recognition

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Somali president to Asharq Al-Awsat: Working with Saudi-led partners to void Israel’s Somaliland recognition

  • Hassan Sheikh Mohamud unveils three-pronged diplomatic and legal strategy to defend Somalia’s sovereignty and territorial unity
  • Says Mogadishu coordinates with Saudi Arabia and Arab, African partners to counter what he calls a dangerous precedent

RIYADH: Somali President Hassan Sheikh Mohamud unveiled a three-pronged political and legal strategy to nullify what he described as Israeli recognition of the breakaway region of Somaliland, warning that such a move threatens Somalia’s sovereignty and regional stability.

Speaking to Asharq Al-Awsat, Mohamud said his government is acting in close coordination with partners led by Saudi Arabia to safeguard stability and shield the Horn of Africa from what he called “reckless escalation.”

Without naming specific countries, the Somali leader said some regional states may see the Israeli recognition as an opportunity to pursue “narrow, short-term interests at the expense of Somalia’s unity and regional stability.”

“I do not wish to name any particular country or countries,” he said. “But it is clear that some may view this recognition as a chance to achieve limited gains.”

Somali President Hassan Sheikh Mohamud visiting the country's soldiers in the frontline. (X)

He stressed that Somalia’s unity is a “red line,” adding that Mogadishu has taken firm positions to protect national sovereignty. “We warn against being misled by reckless Israeli adventurism,” he said.

Mohamud was referring to recognition announced by Israeli Prime Minister Benjamin Netanyahu of the self-declared Republic of Somaliland as an independent state.

“I affirm with the utmost clarity and firmness that any recognition of Somaliland as an independent state constitutes a blatant violation of the sovereignty and unity of the Federal Republic of Somalia,” he said.

He described the move as a grave breach of international law, the UN Charter, and African Union resolutions that uphold respect for inherited African borders.

On that basis, Somalia has adopted and will continue to pursue three parallel measures, he revealed.

The first involves immediate diplomatic action through the UN, African Union, and Organization of Islamic Cooperation to reject and legally and politically invalidate the recognition.

Mohamud said Somalia called for and secured a formal session at the UN Security Council to address what he termed a “flagrant Israeli violation” of Somalia’s sovereignty and territorial integrity.

The session, he said, marked a significant diplomatic victory for Mogadishu, particularly given Somalia’s current membership on the council.

He expressed “deep appreciation” for statements of solidarity and condemnation issued by the African Union, Arab League, OIC, Gulf Cooperation Council, Intergovernmental Authority on Development (IGAD), and the EU, among others.

The second step centers on coordinating a unified Arab, Islamic, and African position. Mohamud praised Saudi Arabia for being among the first to issue a clear statement rejecting any infringement on Somalia’s unity.

He said the Saudi position reflects the Kingdom’s longstanding commitment to state sovereignty and territorial integrity, reinforced by the Saudi cabinet’s “firm and principled” support for Somalia during what he described as a delicate moment.

The third step focuses on strengthening internal national dialogue to address political issues within the framework of a single Somali state, free from external interference or dictates.

Mohamud warned that if left unchecked, the recognition could set a “dangerous precedent and undermine regional and international peace and security.”

He said it could embolden separatist movements not only in the Horn of Africa but across Africa and the Arab world, citing developments in countries such as Sudan and Yemen as evidence of the high cost of state fragmentation.

“This concerns a vital global shipping artery and core Arab national security,” he said, referring to the Red Sea.

“Any political or security tension along Somalia’s coast will directly affect international trade and energy security.”

He added that instability would impact Red Sea littoral states, particularly Saudi Arabia, Egypt, Sudan, Eritrea, Yemen, and Jordan. “Preserving Somalia’s unity is a cornerstone of collective Red Sea security,” he said.

Mohamud argued that Israel’s objective goes beyond political recognition. 

“We believe the goal extends beyond a political gesture,” he told Asharq Al-Awsat. “It includes seeking a strategic foothold in the Horn of Africa near the Red Sea, enabling influence over the Bab Al-Mandeb Strait and threatening the national security of Red Sea states.”

He described the move as a test of Somali, Arab, and African resolve on issues of sovereignty and territorial unity, emphasizing that Somalia’s opposition to secession is a principled and enduring national stance supported widely in the Arab and African worlds, “foremost by Saudi Arabia.”

He rejected any attempt to turn Somalia into a battleground for regional or international rivalries. “We will not allow Somalia to become an arena for settling conflicts that do not serve our people’s interests or our region’s security,” he declared.

Regarding Saudi-Somali relations, Mohamud described the partnership as “deep-rooted and strategic, rooted in shared history, religion, and a common destiny.” Saudi Arabia, he said, “remains a central partner in supporting Somalia’s stability, reconstruction, development, and Red Sea security.”

He voiced admiration for Saudi Arabia’s Vision 2030 and the economic and development gains achieved under the leadership of Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Prince Mohammed bin Salman, Crown Prince and Prime Minister.

Asked about the recent Saudi Cabinet decision rejecting any attempt to divide Somalia, Mohamud said the federal government received it with “great appreciation and relief.”

He said the position extends the Kingdom’s historic support for Somalia’s territorial unity and sovereignty, reinforces regional stability, and sends an important message to the international community on the need to respect state sovereignty and refrain from interference in internal affairs.