MCDONALD’s Malaysia has confirmed suing BDS Malaysia over a boycott of its burger chain, saying that “our utmost sympathies go out to the innocent victims in Gaza”.

Local franchisee Gerbang Alaf Restaurants Sdn Bhd (GAR) is seeking RM6 million in damages for the harm incurred due to actions by a group promoting boycotts against major international brands in response to the Israeli invasion of Gaza.

“While we understand and respect that the act of boycotting is an individual decision, we believe that it should be based on true facts and not false allegations,” McDonald’s Malaysia said in a statement issued to The Malaysian Insight.

It confirmed that based on external legal advice, the company had filed a civil suit against BDS Malaysia “to protect our rights and interests in accordance with the law.”

BDS is a Palestinian-led movement that stands for boycott, divestments and sanctions against brands seen as supporting Israel and to end Israel’s occupation of Palestine. The current conflict that has seen more than 21,000 dead in Gaza was sparked by Hamas’ blitzkrieg attack on Israeli border towns on October 7 that saw 1,200 killed and some 240 kidnapped.

Malaysia supports Palestine’s right to exist and have called for an immediate ceasefire in Gaza. 

McDonald’s Malaysia said in its statement that it has been “transparent and consistent with our communications that McDonald’s Malaysia does not support nor condone the current conflict in the Middle East and like all Malaysians, our utmost sympathies go out to the innocent victims in Gaza.
 
“We have contributed a sum of RM1 million to the Palestinian Humanitarian Fund launched by the government and will continue to pray for the end of the conflict and continued peace in Gaza.

“We further reiterate our stand that McDonald’s Malaysia does not channel any sales, profits, royalties or franchise fees from restaurant operations to support any political cause or conflict in any part of the world,” the burger chain said.

In its suit, the local franchisee said it was seeking compensation for revenue loss (RM3 million), employee layoff payements (RM1.5 million), and material expiration costs (RM1.5 million).

It alleged that the defendant, Boycott Divestment Sanctions Malaysia (BDS Malaysia), encouraged public animosity towards the McDonald’s brand concerning the conflict in Palestine.

Its statement of claim asserted that the majority of Malaysians, who are predominantly Muslim, boycotted the business due to its alleged connection with the conflict.

The claim stated that there were instances of threats and social media shaming directed at the plaintiff’s employees.

In addition to exemplary damages, the company requested an injunction against the repetition of defamatory statements and a court order for the withdrawal of all such statements.

It said BDS Malaysia, through innuendo, had insinuated that the company was implicated in the genocide of 2.3 million Palestinians and had collaborated with Israel or its military.

“Because of the spread of defamatory statements by BDS Malaysia on its websites, Facebook and Instagram accounts, GAR’s reputation has been affected and subject to public hatred,” read the claim filed on December 19.

GAR claimed to have sent a letter of demand to BDS Malaysia on November 10, and in response on December 12, BDS Malaysia maintained that McDonald’s Corporation had permitted its franchisees to assist the Israeli military, asserting that their statements were factual.

GAR, in its statement of claim, highlighted that the company was entirely owned by Muslims, with 55% of its clientele also being Muslims. 

BDS Malaysia, in a statement, denied GAR’s accusation of defamation. – December 30, 2023.