The ongoing boycott movement against food and beverage businesses with alleged ties to Israel has had a slight impact on the national economy, particularly in the accommodation and food service activities sector. According to the Ministry of Economy, the F&B sub-sector contributes a small percentage to the Gross Domestic Product (GDP), with 2.3% in 2023 and 2.4% in the first quarter of 2024. However, there has been an increase in job losses, as reported by the Employment Insurance System Report from Social Security Organisation (Socso). Between January and May of 2024, a total of 22,315 workers lost their jobs, compared to 18,026 during the same period in 2023, marking a 23.8% increase. Of these job losses, 1,091 workers (or 4.9%) were from the accommodation and food service activities sector.
Despite this impact on employment, Malaysia’s economy continues to experience positive growth at a rate of 4.2% in the first quarter of 2024. This growth is supported by robust domestic economic activities and a shift by consumers towards locally branded products. The ministry highlighted that this has helped balance out the impact of the boycott movement on specific industries such as F&B businesses while increasing overall economic activities in Malaysia.