The boycott movement, particularly among food and beverage businesses that are believed to have ties with Israel, has had a minimal direct impact on the national economy. The Ministry of Economy stated that the contribution of the F&B sub-sector to the Gross Domestic Product (GDP) is small, at 2.3% in 2023 and 2.4% in the first quarter of 2024. Additionally, the tendency of consumers to support locally branded products helps balance out the impact and boosts domestic economic activities.
Despite the ongoing boycott movement, Malaysia continues to experience positive economic growth, with a 4.2% increase in the first quarter of 2024. This growth is attributed to the resilient domestic economic activities in the country. However, the movement has slightly affected the employment sector. According to the Ministry, there has been a rise in the number of workers losing their jobs, as reported by the Employment Insurance System Report by the Social Security Organisation (Socso).
From January to May 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 (4.9%) were from the accommodation and food service activities sector. The ministry revealed that 583 workers (50.7% of reported job losses) were due to business closures and downsizing. It is important to note that this data reflects job losses across various sectors and is not exclusive to the food and beverage sector.