In response to a widespread economic boycott linked to the conflict in Gaza, over 100 outlets of the fast-food giant Kentucky Fried Chicken (KFC) in Malaysia have been forced to shut down temporarily. The closures come amidst a months-long campaign impacting various American-linked chains in the country.
Chinese-daily Nanyang Siau Pau reported that a staggering 108 outlets of the American chain had ceased operations, with the state of Kelantan bearing the brunt of the closures, where nearly 80 percent of their stores, totaling up to 21 outlets, were affected. The impact has rippled across other states, with significant closures reported in Johor, Selangor, and Kedah, among others.
QSR Brands, the entity overseeing KFC operations in Malaysia, Singapore, Brunei, and Cambodia, addressed the closures, attributing them to challenging economic conditions. They highlighted the need to manage increasing business costs and refocus efforts on high-engagement trade zones. The company emphasized that affected employees were offered relocation opportunities to busier outlets as part of their re-optimization strategy.
While QSR Brands refrained from disclosing specific numbers of affected outlets or workers, they emphasized their commitment to sustaining the employment of approximately 18,000 team members in Malaysia, a majority of whom are Muslims.
The economic repercussions of the boycott have not spared other American chains, with reports indicating closures of several McDonald’s and Starbucks outlets in Malaysia as well. The boycott, spurred by sentiments against US-linked companies perceived to support Israel, has resulted in a notable slowdown in business for these establishments.
Professor Yeah Kim Leng of Sunway University underscored the adverse impacts of the boycotts on employment and supply chains, cautioning against their unintended economic consequences. He stressed the need for mindful consumer actions to mitigate broader economic ramifications.
Amidst escalating tensions, Vincent Tan, founder of Berjaya Corp Bhd, which operates Starbucks outlets, urged the public to reconsider boycotting the coffee chain, highlighting its predominantly Muslim workforce. Tan’s appeal comes in the wake of vandalism incidents targeting Starbucks outlets, underscoring the heightened tensions surrounding the conflict.
The economic fallout from the boycotts is palpable, with Berjaya Food reporting a significant drop in revenue, reflecting the broader economic strain facing American-linked businesses in Malaysia.
The closures and economic downturn in Malaysia reflect the complex intersection of international conflicts and local economic realities, prompting calls for nuanced approaches to address the multifaceted impacts of such boycotts.
As Muslim-majority nations like Malaysia and Indonesia continue to condemn the conflict in Gaza, the economic fallout underscores the interconnectedness of global politics and local economies, shaping consumer behaviors and business landscapes in unforeseen ways.
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