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A man reacts during a ‘Free Palestine’ rally near the US embassy in Kuala Lumpur, Malaysia, on December 22 last year. Businesses in Malaysia seen with links to the US and Israel, including Starbucks and McDonald’s, have been targeted by an extended boycott. Photo: EPA-EFE

Starbucks Malaysia ‘stands for humanity’ even as Israel boycott weighs on revenue

  • Social media users mostly panned Starbucks Malaysia’s statement, with some saying that a neutral stance was as good as supporting Israel
  • Businesses in Malaysia seen with links to the US and Israel, including Starbucks and McDonald’s, have been targeted by an extended boycott
Malaysia
Starbucks Malaysia on Wednesday said it condemned all acts of violence and stood for humanity, breaking its silence after a wave of anti-Israel boycotts by customers in the Muslim-majority nation sparked falling revenues last quarter.

Businesses in Malaysia seen with links to the US and Israel, including Starbucks and McDonald’s, have been targeted by an extended boycott as local consumers protest the siege on Gaza that the strip’s health authorities say have killed around 30,000 people so far, mostly civilians.

In its statement, Starbucks Malaysia said it has been the victim of “false statements” that had led to acts of violence and vandalism at some of its stores and assaults on its employees.

A Starbucks outlet in Kuala Lumpur. Starbucks Malaysia said its Malaysia operations are fully owned by a publicly-listed Malaysian company and that it has no political agenda. Photo: Azneal Ishak

It said its Malaysia operations are fully owned by a publicly-listed Malaysian company and that it has no political agenda.

“At Starbucks, our position remains unchanged. Starbucks stands for humanity. We condemn violence, the loss of innocent life, and all hate,” the coffee chain said in a statement posted on professional networking site LinkedIn and other social media platforms.

The statement did not mention the boycott.

Starbucks Malaysia’s parent company, Berjaya Food, on February 21 reported a 38 per cent annual decline in revenue during its October-December quarter last year to 182.55 million ringgit (US$38.33 million), compared to 295.32 million ringgit during the same period in 2022.

The drop in revenue was “mainly due to the boycott in relation to the conflict in the Middle East”, Berjaya Food said in its quarterly report filed with Bursa Malaysia.

‘Quaking in their boots’: Malaysians, Indonesians ditch brands over war in Gaza

The organisers of BDS Malaysia, the local arm of the international Boycott, Divest and Sanctions movement against Israel, declined to comment on Starbucks’ statement, saying that Starbucks was not a target of its campaign.

In December, BDS Malaysia was slapped with a lawsuit by the local licence holder of US fast food chain McDonald’s, which is seeking US$1.31 million in damages for inciting “public hatred” against the brand and damaging its business.

In its statement, Starbucks Malaysia said its activities in the country focused on serving and supporting local communities, the government and NGOs “through a range of initiatives designed to directly uplift and benefit Malaysians”.

It also said its workforce of over 5,000 employees across 400 stores nationwide consisted entirely of Malaysians, including people with disabilities.

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Malaysia’s leader condemns Israel over Gaza strikes as thousands attend pro-Palestinian rally

Malaysia’s leader condemns Israel over Gaza strikes as thousands attend pro-Palestinian rally
The coffee chain’s statement was broadly panned on Malaysian social media, with some saying that taking a neutral stance was as good as supporting Israel.

“For Malaysians if you choose not to pick a side and claim to be neutral, to them, you are supporting the laknatullah,” said a Facebook post from user Azmil Awalluddin that shared Starbucks Malaysia’s statement and used the Arabic term for “cursed by God” that was favoured by Malaysians to describe Israel.

Starbucks Malaysia’s statement echoed parts of a letter to employees and customers issued in December by the company’s CEO Laxman Narasimhan, who sought to distance the company from a “Solidarity with Palestine” post on social media posted by their US workers’ union.

Malaysia pizza chain to rebrand as widening boycott over Israel-Gaza war bites

The Seattle-based Starbucks Corp last month reported lower-than-expected profits of US$1.02 billion over the first quarter of its financial year, which Narasimhan reportedly told investors was hampered by weaker US demand tied to the Israel-Gaza war.
In addition to consumer boycotts, Malaysia’s Prime Minister Anwar Ibrahim has also been outspoken about the conflict, demanding a ceasefire and recognition of the Palestinian state. His government has blocked Israeli shipping line ZIM from docking in the Southeast Asian nation’s ports.

Malaysia has a long history of cordial relations with Hamas and its leaders, a group labelled terrorists by Israel and its allies, but seen as legitimate freedom fighters by many in the Muslim world.

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