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.


France demands EU-Mercosur trade pact signing be put off

Updated 6 sec ago
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France demands EU-Mercosur trade pact signing be put off

  • “France asks that the deadlines be pushed back to continue work on getting the legitimate measures of protection for our European agriculture,” said the statement

PARIS, France: France on Sunday urged the European Union to postpone the deadlines set for signing a free trade agreement with South American bloc Mercosur, rejecting the deal in its current form.
In a statement from Prime Minister Sebastien Lecornu’s office, Paris said the conditions were not in place for EU member states to vote on the agreement.
“France asks that the deadlines be pushed back to continue work on getting the legitimate measures of protection for our European agriculture,” said the statement.
European Commission President Ursula von der Leyen is due in Brazil on Monday for talks to finalize the landmark pact with the Mercosur bloc, which includes Brazil, Argentina, Uruguay, and Paraguay.
But Brussels first has to get the approval of the EU member states over the coming week.
“Given a Mercosur summit is announced for December 20 (Saturday), it is clear in this context that the conditions have not been met for any vote (by states) on authorizing the signing of the agreement,” said the statement from Paris.
Earlier Sunday, in an interview published in the Germany financial daily Handelsblatt, France’s Finance Minister Roland Lescure made France’s objections clear.
“As it stands, the treaty is simply not acceptable,” he said.
Securing robust and effective safeguard clauses was one of the three key conditions France set before giving its blessing to the agreement, he added.
The other key points were requiring the same production standards faced by EU farmers and establishing “import controls.”
“Until we have obtained assurances on these three points, France will not accept the agreement,” said Lescure.
European nations are poised to vote on the trade agreement between Tuesday and Friday, according to EU sources.
The European Parliament votes Tuesday on safeguards to reassure farmers — particularly those in France — who are fiercely opposed to the treaty.
If approved, the EU-Mercosur agreement would create a common market of 722 million people.
It is intended to allow the EU to export more cars, machinery, wine, and other goods, and will also facilitate the entry into the European Union of beef, poultry, sugar, honey, and other products.
Farmers in France and some other European countries say it will create unfair competition due to less stringent standards, which they fear could destabilize already fragile European food sectors.