MacDonald’s Malaysia seeks $1.3 million in damages from boycott movement

McDonald's quarter pounder hamburger

MacDonald’s Malaysia has sued Boycott, Divestment and Sanctions (BDS) Malaysia movement for 6 million Ringgit ($1.304 million) for business losses stemming from Israel boycott calls. 

A Reuters report of December 31, 2023 states that McDonald’s Malaysia sued the movement for “inciting the public (into) boycott.” The report also says that the fast food chain has lost revenue from early closures and job retrenchments.

The boycott came off the implicit support for Israel in the Middle-East conflict by Western brands. McDonald’s denies such support.

The pro-Palestinian boycott movement is using the social media to target Western multinationals in the Muslim-majority nation. 

Several companies outside Malaysia have suffered similar boycotts for lacking a clear stand in the Israel-Hamas war. Starbucks for instance sued its union employees for a boycott-causing social media post, terming it a “misrepresentation.

McDonald’s Malaysia took the same stance on December 29, when it called the boycott movement’s statements as “false and defamatory.” 

In reply, BDS Malaysia denied defaming its accuser and was ready to settle the issue in court.

This is despite the fact that McDonald’s has contributed 1 million ringgit ($217,400) to the national Palestinian fund. Besides, it has been draping its restaurants with Palestinian colors.

The American fast food chain operates in Malaysia under the name Gerbang Alaf Restaurants Sdn Bhd. It first served court summons to BDS Malaysia movement on December 19, 2023. 

McDonald’s Malaysia Food and Prices Profile

Amid this case, McDonald’s still prides in its four-decade operational legacy. Its first restaurant opened in Malaysia in April, 1982.

Some of the most popular food products cost much less here than in the United States. For instance, while Big Mac costs $5.38 in the U.S., in Malaysia the hamburger goes for 13.40 ringgit ($2.91).

The same applies to the popular chicken McNuggets. While 6 pieces cost 10.42 ringgits ($2.27) in Kuala Lumpur, a similar half dozen averages $3.1 in New York.

McDonald’s Malaysia also serves exotic food in its local cafes. These include Nasi Lemak, which locals eat with chicken and butter. Another popular treat is Ayam Goreng (chicken deep fried in oil), whose cheapest cost is 14.39 ringgits ($3.13).

By suing the boycott movement, the restaurant chain would therefore seem to be “protecting its interests” including these popular sales.