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McDonald’s Malaysia drops lawsuit against pro-Palestine boycott group

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The Malaysian operator of US fast food giant McDonald’s on Friday said it will withdraw its legal suit for damages against the local chapter of an Israel boycott movement, insisting they are aligned with the country’s position in support of Palestinians under siege in Gaza.

“We hope that the decision made today will allow all parties to move forward and focus on finding a resolution that upholds justice,” McDonald’s Malaysia managing director Azmir Jaafar said in a statement.

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Lawyers representing both parties had met on Monday for their first round of court mediation, months after Gerbang Alaf Restaurants, the local franchise owner of the international fast food icon, filed a US$1.27 million lawsuit against the campaign group in December for alleging links between McDonald’s Malaysia and Israel’s armed forces.

A man reacts during a “Free Palestine” rally near the US embassy in Kuala Lumpur, Malaysia, in December 2023. Photo: EPA-EFE

Since Jerusalem launched a deadly assault on Gaza in October, Malaysian consumers have rallied behind a call by the local arm of the global boycott, divestment and sanction (BDS) movement against brands seen to have links with Israel, causing many of those companies to incur financial losses.

McDonald’s became a target of the boycott movement following viral social media posts showing videos of McDonald’s in Israel donating free food to the Israel Defence Forces (IDF) in the wake of the October 7 Hamas incursion into Israeli territory.

Gerbang Alaf Restaurants had previously justified its lawsuit by arguing that the movement had slandered its business and implied it had profited from the assault on Palestinians and conspired with Israel.

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McDonald’s Malaysia says that they “do not support nor are we complicit in any conflicts or wars”, and that it stands by its commitment as a wholly Muslim-owned business towards transparency, ethical business practices and social responsibility.

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McDonald’s franchisee, BDS Malaysia seek mediation over boycott movement

“We firmly condemn all forms of violence and pray for an end to the war and continued peace,” Azmir said in his Friday statement, adding that McDonald’s Malaysia continues to support Palestinians through its contribution to the Palestine Humanitarian Fund and various employee fundraising initiatives in support of relief efforts in Gaza.

The October 7 raid led to the deaths of over 1,200 Israelis, with scores more taken hostage into Gaza. In retaliation, the IDF has obliterated most of Gaza in the last five months, killing over 30,000 people – most of them civilians, according to the enclave’s Hamas-run health authority.

The boycott against Israel-affiliated businesses in Malaysia has affected more than just the American fast-food icon.

‘Brands that fatten them up’: Israeli dates under Muslim boycott in Southeast Asia

The local Starbucks chain has reported a 38 per cent year-on-year decline in revenue – falling to 182.55 million ringgit (US$38.5 million) in the October-December quarter, compared to 295.32 million ringgit during the same period in 2022.

The latest item to be thrust onto the boycott list are Israeli dates, a popular food eaten to break fast during the Islamic month of Ramadan, after Malaysians were warned over the alleged mislabelling of the sweet fruits imported from Israel for local sale.

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Hadi Azmi,Joseph Sipalan