KUALA LUMPUR, June 26 — The boycott of businesses alleged to have ties to Israel, especially in food and beverage, has had less direct impact on the national economy, but has slightly affected the employment sector.
The Economy Ministry said this is because the contribution of the food and beverage subsector to the gross domestic product is small — 2.3 per cent in 2023 and 2.4 per cent in the first quarter of 2024.
Consumers’ switch to local products has also balanced the impact, further increasing domestic economic activity.
“Although the boycott continues, Malaysia records encouraging economic growth, which is 4.2 per cent in the first quarter of 2024, supported by resilient domestic economic activity,” said the ministry in a written reply on the Parliament website yesterday.
However, the ministry said there has been an increase in unemployment, based on the Employment Insurance System Report by the Social Security Organisation.
From January to May, 22,315 workers lost their jobs, compared with 18,026 in the same period last year — an increase of 23.8 per cent.
Of this total, 1,091 workers, or 4.9 per cent, were in the accommodation and food service sector.
The ministry said 583 workers or 50.7 per cent of reported job losses were due to business closures and downsizing.
“This job loss data is general and not skewed to the food and beverage sector,” he said.
— Bernama
