KUALA LUMPUR – McDonald’s Malaysia has completely withdrawn its RM6 million suit against BDS (Boycott, Divestment, Sanctions) Malaysia, the non-governmental organisation announced today.
BDS Malaysia stated in a release today that the withdrawal was finalised on April 18 at the Shah Alam High Court.
“McDonald’s Malaysia has agreed to completely withdraw their suit against BDS Malaysia with no further recourse to refile any similar suit in the future.
“Gerbang Alaf (owner of McDonald’s Malaysia) maintains its stance of refusing to accept BDS Malaysia’s request that it condemns the Israeli crime of genocide against the Palestinian people in Gaza.
“BDS Malaysia also notes that McDonald’s is continuing its operation in Israel and has ultimately acquired ownership of all the restaurants previously operated by its franchisee,” it said.
As a result, BDS Malaysia affirmed its commitment to categorise the fast-food chain as part of its organic boycott targets and to support the Malaysian public’s call to boycott McDonald’s.
Earlier on April 15, BDS Malaysia clarified that the fast-food chain had not fully withdrawn its legal action against the NGO as terms for withdrawal had not been agreed upon at that time.
This came after BDS Malaysia said that they were compelled to clarify the situation following Gerbang Alaf’s inaccurate statement that said the suit was withdrawn.
McDonald’s Malaysia had filed the suit in December last year.
The boycott campaign against McDonald’s intensified shortly after October 7 last year, when photos of Israeli soldiers patronising McDonald’s circulated widely.
In its suit, McDonald’s Malaysia said it lost RM3 million due to shorter business hours, aside from having to pay RM1.5 million in severance compensation to employees and losing another RM1.5 million due to expired food products and raw material waste.
It had also demanded an unconditional apology from BDS Malaysia on its social media pages and the removal of defamatory content that featured the brand’s logo, besides additional compensation for exemplary, special, and general damages, as well as 5% interest per annum, costs, and 5% interest on costs.
McDonald’s operations here are run by Gerbang Alaf Restaurants Sdn Bhd, which in 2017 was fully taken over by the Reza Group from Saudi Arabia and a local business partner. – April 21, 2024