Analysis: Anti-Israel boycott in Malaysia, Indonesia dividing public opinion as firms, workers suffer income loss

BOYCOTTS’ IMPACT IS FIRST FOUND BY LOCAL ECONOMY, SAY EXPERT

According to Malaysian analyst Dr. Yeah Kim Leng of Sunway University, the protest could possibly lead to an increase in unemployment, particularly if there was a significant slowdown in business.

He claimed that workers may initially be forced to work irregular hours, which would cost them money.

Consumption may be slower when money is lower. Retrenchments would be the worst-case situation and may cause social issues, he said, adding that it was crucial to prevent the boycott from spreading to other companies.

He continued by saying that there might be effects on an entire supply chain in a specific sector, such as the company operations of McDonald’s and companies in the source chains that are owned by Malay.

He stated,” The immediate effect is to the local economy.”

He claimed that because McDonald’s is a sizable food ring in the nation, the ban will be widely felt.

McDonald’s Malaysia has more than 320 locations across the nation, according to its site, and serves over 13.5 million users each month.

Additionally, it has more than 15,000 employees in Malaysia.

Although it would be seen as social support for the Arab produce, Dr. Yeah questioned whether the protest would directly affect the Israel-Has war in Gaza.

Sending more charitable support more than affecting our local market and local companies is a more effective way to express support, he said. &nbsp,

According to Mr. Dedi Dinarto, head Indonesia researcher at the public policy consulting firm Global Counsel, banning Israeli-affiliated multinational corporations may have negative effects on Indonesia’s economy. &nbsp,

He continued,” This is because these businesses have used regional tools and hired local workers.” &nbsp,

He added that it is also unlikely that the Indonesian government will forbid Jewish goods or businesses with relations to Israel. &nbsp,

According to Mr. Dedi,” there is no convincing economic argument that quite a ban would drastically affect Israel’s market and hinder them from their actions against the Palestinians.” &nbsp,

He added that the call for a boycott also goes against the government’s official stance, citing the fact that many cabinet and parliamentarians have stated that it is ineffective at deterring Israel. &nbsp,

Instead, he told CNA,” They think Indonesia should keep promoting Palestinian rights at the United Nations ( UN), especially since Indonesia ( has a seat ) in the UN Human Rights Council.”

The president of the Indonesian House of Representatives, Ms. Meutya Hafid, officially denounced the ban last Friday and stated that a solution must be found through international organizations like the UN.