McDonald’s Malaysia has filed a lawsuit seeking over $1 million in damages from the local chapter of the global pro-Palestine Boycott, Divestment and Sanctions (BDS) movement over “false, misleading and defamatory” allegations that its money funded Israel’s occupation of Palestinian territories.
Background of the Dispute
The dispute began in July 2022 when BDS Malaysia called for a boycott of McDonald’s in the country to protest what it said was the company’s support and funding of Israel’s occupation of the Palestinian territories.
BDS Malaysia claimed that McDonald’s was “complicit in Israel’s crimes” and violating human rights because a local partner who owns and operates McDonald’s restaurants in Malaysia also has a licence to run the fast food chain in Israel.
The group argued that money from the business in Malaysia could be funnelled back to Israel and used to support its policies towards Palestinians that much of the world considers illegal.
Details of the Lawsuit
On December 30th, 2022, McDonald’s Malaysia filed a lawsuit in the Kuala Lumpur High Court seeking damages totalling 6 million ringgit ($1.3 million) from BDS Malaysia and its chairman Mohd Azmi Abdul Hamid.
In its filing, McDonald’s Malaysia rejected claims that the company channels funds from its Malaysian operations to Israel. It stated that the Malaysian business is entirely owned and operated by locals with no ties whatsoever to Israel.
The company accused BDS Malaysia of making “false, misleading and defamatory statements” about its business in order to promote the boycott campaign. It said the allegations are baseless and not supported by facts.
McDonald’s is seeking aggravated and exemplary damages over claims that BDS Malaysia’s statements were made in bad faith to disparage the company and disrupt its business operations.
| Damages Sought | Amount |
|---|---|
| General Damages | RM 3 million |
| Aggravated Damages | RM 2 million |
| Exemplary Damages | RM 1 million |
| Total | RM 6 million |
Reaction from BDS Malaysia
BDS Malaysia has refused to apologise or retract its statements about McDonald’s alleged links to Israel’s occupation of Palestine.
The group’s chairman Mohd Azmi Abdul Hamid was quoted saying: “We will not apologise as we’ve done no wrong calling for the boycott of businesses that channel funds to Israel in the name of neutral business engagement.”
He reiterated the group’s claims that McDonald’s Malaysia funds eventually reach Israel via its parent company and stated that BDS Malaysia is prepared to prove these allegations in court.
Hamid also accused McDonald’s of trying to silence critics of Israel’s occupation of Palestine through expensive lawsuits. He said the group has limited financial resources but will stand firm in defending the rights of Palestinians.
Wider Context of Israel-Palestine Conflict
The McDonald’s dispute comes against the backdrop of the long-running Israel-Palestine conflict that has defied resolution for over seven decades.
Israel has occupied East Jerusalem and the West Bank since the 1967 Middle East war. The occupation is considered illegal by much of the world.
Multiple attempts to create an independent Palestinian state in Gaza and the West Bank have failed over disagreements on issues like Israeli settlements, borders, security and the status of Jerusalem.
Palestinians routinely face human rights violations under Israel’s occupation according to global bodies like the United Nations and Amnesty International. However, Israel disputes this.
There is increasing frustration over the lack of progress in resolving the conflict or improving Palestinian lives. This has led to growth in activist movements like BDS that aim to pressure Israel through boycotts and sanctions modelled on the anti-apartheid struggle in South Africa.
Impact on McDonald’s Malaysia
McDonald’s Malaysia risks reputational damage and lost business from the ongoing dispute regardless of the lawsuit’s outcome.
The company denies funding Israel’s occupation, but the allegations continue circulating online.
BDS Malaysia is unlikely to stop its boycott campaign unless forced to do so by a court injunction.
The group has a committed support base among pro-Palestinian activists in Malaysia who will heed its call to avoid McDonald’s restaurants.
All this creates distractions for McDonald’s Malaysia management and obstacles to smooth business operations in the country.
What Happens Next
The lawsuit will likely take months to be resolved in Malaysia’s courts with several hearings needed before any verdict.
McDonald’s Malaysia will have to present credible evidence disproving BDS Malaysia’s claims on financial links to Israel’s occupation of Palestine.
BDS Malaysia also has to defend its statements in court and prove any claims it has made.
The court will decide if the group’s boycott campaign against McDonald’s is justified or crosses the line into false statements that damage the company’s reputation and business.
If McDonald’s Malaysia wins, BDS Malaysia faces having to pay substantial damages and being legally forced to stop its boycott campaign.
A verdict in favour of BDS Malaysia would be a major setback for McDonald’s as it would legitimise the damaging allegations against the company.
Either way, the dispute looks set to be a landmark case in Malaysia regarding activism linked to the Israel-Palestine conflict. Its outcome will set a precedent on how businesses and pro-Palestinian groups approach such activism in the country going forward.
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