KUALA LUMPUR (March 22): McDonald’s Malaysia said on Friday that it will withdraw its legal suit against the local chapter of the Boycott, Divestment and Sanctions (BDS) movement which is seeking action and support for Palestine.

The withdrawal comes following “positive outcome” from mediation between McDonald’s Malaysia and BDS, said Datuk Azmir Jaafar, managing director and local operating partner of McDonald’s Malaysia, in a statement. BDS has also acknowledged that the actions of the McDonald’s operator in Israel are wholly independent of McDonald’s Malaysia, he noted.

“Our stance remains firm,” Azmir said. “We do not support, nor are we complicit in any conflicts or wars.”

BDS Malaysia, part of a global movement that calls for economic, political and cultural pressures on Israel, as well as countries that support Israel over its occupation of Palestinian land, was not immediately available for comment.

McDonald’s Malaysia, through franchise owner Gerbang Alaf Restaurants Sdn Bhd, filed the suit against the local movement in December last year for allegedly defaming them through calls for a boycott for purportedly “colluding with Israel”.

The fast-food franchise sought an unconditional apology from BDS Malaysia and RM6 million in damages, which include RM3 million for loss of revenue, RM1.5 million for employees who were laid off, and RM1.5 million for expiry of materials.

Gerbang Alaf Restaurants was also seeking an injunction against BDS Malaysia from calling for a boycott. BDS Malaysia in turn has denied beginning the boycott, arguing that it was started by regular Malaysians.

Both parties went into mediation, which began on Monday (March 18) before judge Zaman Mohd Noor.

“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.

McDonald’s Malaysia is among a swath of foreign brands facing intensifying public boycotts, as Israel ramped up its violence in occupied Palestine following the Oct 7, 2023 Hamas-led attack.

“We firmly condemn all forms of violence and pray for an end to the war and [for] continued peace,” said Azmir, stressing that the company has continued to support Palestinians through contribution to the Palestine Humanitarian Fund and various employee fundraising initiatives to further support relief efforts in Gaza.

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