KUALA LUMPUR: The boycott movement, particularly targeting food and beverage businesses allegedly associated with Israel, has shown limited direct impact on the economy.
Economy Minister Rafizi Ramli said the boycott's influence on the overall economy remained modest, primarily due to the food and beverage sector's relatively small contribution to gross domestic product (GDP), which stood at 2.3 per cent in 2023 and 2.4 per cent in the first quarter of this year.
"Despite ongoing boycott efforts, Malaysia continues to record encouraging economic growth of 4.2 per cent in the first quarter of this year, driven by resilient domestic economic activities," Rafizi said in the Dewan Rakyat in response to R. Yuneswaran (PH-Segamat).
Yuneswaran had asked about the amount of losses and effects of the boycott movement from January to May 31 on the national economy and the measures taken by the ministry to tackle it.
Rafizi, however, said there had been an increase in the number of workers who had lost their jobs based on the Employment Insurance System Report by the Social Security Organisation (Socso).
"From January to May, a total of 22,315 workers lost their jobs, compared to 18,026 during the same period in 2023, marking a 23.8 percent increase.
"Of these, 1,091 workers, or 4.9 per cent, were from the accommodation and food service sector.
"Among these losses, 583 employees, or 50.7 per cent, were due to business closures and downsizing," he said, adding that these job losses were not specific to the food and beverage sector alone.
Rafizi said the government remains committed to ensuring sustained economic growth and mitigating the impact of the boycott movement.
"Structural economic reforms are underway to support growth targets and advance Malaysia's transition to becoming a high-income nation.
"At the same time, local companies should take up opportunities and be more creative and innovative in offering quality local products that meet the tastes of local people. This action will indirectly increase the demand for Malaysian-made products."