Malaysia’s Resilient Economy: Minimal Impact of Boycott Movement on Food and Beverage Businesses

Despite the ongoing boycott movement among food and beverage businesses that are believed to have ties with Israel, Malaysia continues to experience positive economic growth. The country’s Gross Domestic Product (GDP) has increased by 4.2% in the first quarter of 2024, attributed to the resilient domestic economic activities. However, the movement has slightly affected the employment sector, with a rise in the number of workers losing their jobs.

According to the Ministry of Economy, there were a total of 22,315 job losses from January to May 2024, compared to 18,026 during the same period in 2023, marking a 23.8% increase. Of these job losses, 1,091 workers (4.9%) were from the accommodation and food service activities sector. The ministry revealed that 583 workers (50.7% of reported job losses) were due to business closures and downsizing. It is important to note that this data reflects job losses across various sectors and is not exclusive to the food and beverage sector.

Despite this setback in employment, Malaysia’s economy remains strong due to its focus on locally branded products which helps balance out any impact caused by boycotts or international tensions on certain industries like F&B sub-sector contribution to GDP is small at only 2.3% in 2023 and 2.4% in Q1 of 2024 but it helps boost domestic economic activities as consumers prefer buying local products over imported ones.

Overall, while there may be some challenges faced by certain sectors such as F&B sub-sector due to international tensions or boycotts, Malaysia’s strong domestic economic activities and focus on locally branded products have helped mitigate any negative impact on its overall economy.

In conclusion, despite ongoing boycott movement among certain businesses particularly those believed tied with Israel has had minimal direct impact on national economy as contribution of F&B sub-sector is small at only 2.3% in