KUALA LUMPUR – McDonald’s Malaysia has withdrawn its suit against BDS (Boycott, Divestment, Sanctions) Malaysia, the company announced.
This follows a positive outcome from the mediation process, in which BDS acknowledged McDonald’s operator in Israel is independent of McDonald’s Malaysia, the fast-food chain’s managing director, Datuk Azmir Jaafar, said in a statement today.
“With the positive outcome of the mediation and clarifications made by BDS in their recent statements, acknowledging that the actions of McDonald’s operators in Israel are wholly independent of McDonald’s Malaysia, we will be withdrawing the legal suit.
“We hope that the decision made today will allow all parties to move forward and focus on finding a resolution that upholds justice,” Azmir said.
He reiterated McDonald’s Malaysia’s stance against any conflict or war as a 100% Muslim-owned business.
“Our hearts go out to the innocent victims in Gaza who are caught in the conflict. We firmly condemn all forms of violence and pray for an end to the war and continued peace.
“McDonald’s Malaysia continues to support Palestinians impacted by the violence through our contribution to the Palestine Humanitarian Fund and various employee fundraising initiatives to further support relief efforts in Gaza.”
In December, the fast-food chain sued BDS Malaysia for RM6 million for defaming the company over alleged support of Israel.
BDS Malaysia began boycott calls against McDonald’s soon after October 7 last year, when photos of Israeli soldiers enjoying McDonald’s takeaway meals went viral.
Both sides met for mediation at the Shah Alam court complex on March 18, after which BDS Malaysia’s lawyer, Datuk M. Reza Hassan, said the session had been “very positive”.
Mediation was to have continued on April 30, before McDonald’s announcement on withdrawing its suit today.
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. – March 22, 2024