Ministry Of Economy: Boycott Movement Has No Significant Impact On National Economy

KUALA LUMPUR, July 31 (Bernama) -- The boycott movement on foreign businesses and products is not seen to have a significant impact on the national economy, the Ministry of Economy said.

Through a reply posted on the Parliament's website today, the ministry said the boycott has not impacted the economy since the contribution of the food and beverage subsector to the gross domestic product (GDP) is small, which is 2.4 per cent in the first quarter of 2024.

The government will continue to work to ensure that the country's economy continues to grow and is not affected by any boycott movements, said the ministry.

The economic structural reforms that are being implemented are expected to support economic growth targets to accelerate the transition towards making Malaysia a high-income country, it noted. 

"At the same time, local companies should take this opportunity to be more creative and innovative in offering quality products that meet the tastes of local people.

“This action will indirectly increase the demand for Malaysian-made products," it said in response to Senator Datuk Ahmad Ibrahim.

The senator had asked the ministry to state the percentage of economic growth for the beverage and food subsector at a time when most of the players in this industry are under pressure due to the boycott movement.

The Ministry of Economy said the West Asian conflict between Israel and Palestine that occurred on Oct 7, 2023, prompted a movement to boycott part of the business of foreign branded companies by most Malaysians.

"This boycott causes consumers to tend to switch to other businesses such as locally branded food and beverage retail businesses," the ministry said.

-- BERNAMA