Boycott movement has minimal impact on the economy, but affects workers slightly

KUALA LUMPUR: Although it doesn’t have a significant direct influence on the country’s economy, the boycott campaign has had a little effect on the employment sector, particularly among food and beverage (F&B) companies that are allegedly connected to Israel.

According to the Ministry of Economy, this is because the food and beverage subsector only makes up a modest portion of the GDP 2.3 percent in 2023 and 2.4 percent in the first quarter of 2024.

Additionally mitigating the effect and so boosting domestic economic activity is the inclination of consumers to shift to locally branded company items.

In a written response that was posted on the official Parliament website on Tuesday, the ministry stated, “Although the boycott movement is still ongoing, Malaysia continues to record encouraging economic growth, which was 4.2% in the first quarter of 2024, supported by resilient domestic economic activities.”

However, based on the Employment Insurance System Report from the Social Security Organisation (Socso), the ministry said that there has been a rise in the number of workers who have lost their jobs.

A total of 22,315 persons lost their jobs between January and May of 2024 as opposed to 18,026 during the same period in 2023, a rise of 23.8%.

1,091 employees, or 4.9% of the total, are employed in the lodging and food service industry.

The government stated that company closures and downsizing accounted for 583 workers, or 50.7% of the reported employment losses.

He remarked, “This job loss data is not skewed to the food and beverage sector only, it is general.” – Bernama