Long-term boycotts of Israeli-affiliated brands could deter foreign investors eager to expand their holdings in Malaysia or make new investments.
Experts believe that a total boycott of a few well-known franchises will primarily affect local workers and company profits, with little to no effect on Israel.
According to Dr. Azmi Hassan, senior fellow at Nusantara Academy for Strategic Research, some of the brands that were passed over might not have more than three aspects of their business that are directly related to Israel.
“It won’t be questioned if the goods are directly from Israel; however, the boycotted goods are neither Israeli nor Israeli-made.
The boycott might eventually affect large corporations or franchises looking to make investments in Malaysia. We should reconsider the boycott,” Azmi told Business Times, adding that if the boycott was for goods that were directly imported from Israel, then the government ought to be involved as well.
“However, indirect boycotts should not involve the government because it will be interpreted as a policy, which sends a bad signal to future businesses that want to invest in Malaysia.”
Dr. Oh Ei Sun, senior fellow at the Singapore Institute of International Affairs, stated that little to no new Western investment would probably have an impact eventually.
“A pull-out of Western investments is likely, as these boycotts are considered by them to be anti-Semitic. What described above is likely to materialise, as our competitiveness versus up-and-coming countries such as Vietnam is slipping anyway.
“So this is going to buttress Western investors’ willingness to move to Vietnam instead.”
Bank Muamalat Malaysia Bhd chief economist Mohd Afza-nizam Abdul Rashid said there was a need to understand the history of the current conflict and what implications it has on the Muslim world.
“Doing so will give us a better idea on the right course of action.”
