PETALING JAYA: The boycott movement on foreign businesses and products that are allegedly linked to Israel has presented a potential opportunity for the government to globally promote Malaysia’s halal economy, said Monash University economic professor Dr Niaz Asadullah.
“The government can take advantage of Malaysia’s standing as a global leader in halal products by exporting to countries boycotting western products,” he said.
Niaz was referring to growing calls among locals to boycott popular fast-food chains that are openly supporting Israel amid the Middle East conflict.
“Malaysia has maintained its principled stance on the Palestine issue for decades. Local and global brands that share the same principle have an advantage in the current market situation.
“This presents an additional opportunity for the government to aggressively promote our halal economy locally and internationally.”
He added that Malaysia could build economic resilience in the face of external factors such as boycotts by taking measures to make the consumer market more competitive and diverse, with many brands and providers.
“Young Asian consumers are increasingly favouring pro-social choices.
“While they are loyal to global brands, they are also vocal about the causes they believe in.
“They won’t hesitate to shun products that they associate with dictatorial and military regimes, as well as apartheid governments. This includes businesses that profit from illegal Israeli settlements.”
He also said there is an opportunity for local companies or alternative foreign brands to gain market share if they target Gen Z, which comprises about one-third of the world’s population.
“However, this requires vigorous marketing campaigns on social media to promote brands that are sensitive to demands for sustainable and ethical consumption.
“Gen Z consumers are digitally connected and more likely to respond to such campaigns,” he said, adding that in the age of social media, boycott effects are strong enough to disrupt the market on the economic level.
“In the past, calls for boycotts did not last long enough to make a significant impact. Nowadays, stories of brutalities of the Israeli military go viral within hours.
“Political leaders also recognise that today’s digitally connected youths are so much more aware of geo-political developments.”
Niaz said for consumers to shift to alternatives, vendors not targeted by the boycott need to promote their products as worthy substitutes.
“But it’s only a short window of opportunity for them, given the significant market power and strong loyalty that global brands enjoy.
“Moreover, most of the targeted western brands are managed by Malaysian franchises employing locals as service providers.
“A shift in demand to be large and across the board should not be expected.”
Niaz added that while the boycott is much stronger in the Middle East, with visible impact on selected western businesses in countries like Egypt and Jordan, the boycott movement in Malaysia is also slowly gathering momentum.
“Multinational companies and global outlets with actual or perceived economic ties with the Israeli government or businesses profiting from occupied Palestinian territories are vulnerable.”
He said several prominent Malaysian public personalities have also endorsed calls for boycotts of certain western brands, and franchises have been quick to take countermeasures.
“Businesses are responding to the growing generational shift in demand for sustainable and ethical consumption.
“International restaurant chains and brands are likely to become more engaged in social marketing and pay attention to their company’s public engagements in times of crisis.
“The overall impact has been less systematic and at best moderate.”
