KUALA LUMPUR: McDonald’s Malaysia has withdrawn its RM6 million defamation suit against BDS (Boycott, Divestment, Sanctions) Malaysia, as announced by the fast-food chain’s managing director, Datuk Amir Jaafar.
“With the positive outcome of the mediation and clarifications made by BDS in their recent statements, acknowledging that the actions of McDonald’s operators in Israel are wholly independent of McDonald’s Malaysia, we will be withdrawing the legal suit,“ Amir stated in a statement today.
The decision, he stated, comes after a successful mediation process, during which BDS acknowledged that McDonald’s in Israel operates independently from McDonald’s Malaysia.
Amir hoped that the withdrawal of the suit would allow both parties to “move forward and focus on finding a resolution that upholds justice.”
Restating McDonald’s Malaysia’s stance as a 100% Muslim-owned business, he said: “Our hearts go out to the innocent victims in Gaza who are caught in the conflict. We firmly condemn all forms of violence and pray for an end to the war and continued peace.”
The company has been contributing to the Palestine Humanitarian Fund and organising employee fundraising initiatives to support relief efforts in Gaza, underscoring its commitment to the Palestinian cause.
The legal dispute between McDonald’s Malaysia and BDS Malaysia began in December when the fast-food chain sued the organisation for RM6 million, alleging defamation over claims of support for Israel.
BDS Malaysia had initiated boycott calls against McDonald’s after photos of Israeli soldiers enjoying McDonald’s takeaway meals went viral in October 2022.
On March 18, both parties engaged in mediation at the Shah Alam court complex, which BDS Malaysia’s lawyer, Datuk M. Reza Hassan, described to be “very positive.”
Further mediation was scheduled for April 30 before McDonald’s decided to withdraw its suit today.
In its initial suit, McDonald’s Malaysia claimed losses of RM3 million due to shortened business hours, RM1.5 million in severance compensation for employees, and another RM1.5 million due to expired food products and raw material waste.
McDonald’s Malaysia is operated by Gerbang Alaf Restaurants Sdn Bhd, which was fully taken over by the Reza Group from Saudi Arabia and a local business partner in 2017.
