Despite ongoing boycotts affecting certain businesses, Malaysia’s economy continues to show robust growth, according to the Economy Ministry.
A Closer Look at the Impact
The boycott, particularly targeting food and beverage (F&B) businesses alleged to have connections with Israel, has had minimal direct effect on the national economy, reports Bernama.
The contribution of the F&B sub-sector to the gross domestic product (GDP) is relatively small, cushioning the broader economic impact.
Additionally, many consumers have shifted their spending to locally branded products, which has bolstered domestic economic activity.
“Although the boycott movement is ongoing, Malaysia continues to record encouraging economic growth supported by resilient domestic economic activities,” the Ministry stated in a written response on the official Parliament website.
Employment Sector Takes a Hit
While the economy remains stable, the employment sector has not been spared. The Social Security Organisation (Socso) reports a significant rise in job losses.
Between January and May 2024, 22,315 workers lost their jobs, marking a 23.8% increase from the same period in 2023, when 18,026 workers were affected.
Of the total job losses this year, 1,091 (4.9%) were from the accommodation and food service activities sector. Within this sector, 583 workers lost their jobs due to business closures and downsizing.
“This job loss data is general and not limited to the food and beverage sector alone,” the Ministry clarified.
Key Takeaways
While the boycott has had a limited direct impact on the overall economy, the ripple effects on employment highlight the interconnected nature of business operations and job security.
The resilience of Malaysia’s domestic economic activities provides a buffer, but the increase in job losses calls for attention to the broader implications for workers across various sectors.
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