KUALA LUMPUR: The boycott movement on foreign businesses and products is not seen to have a significant impact on the national economy.
In a written Dewan Negara reply, the economy ministry said the boycott movement had not impacted the economy since the contribution of the food and beverage subsector to the gross domestic product (GDP) was only 2.4% in Q1 2024.
The ministry said the government would ensure that the country’s economy continued to grow and would not be affected by any boycott.
It said the economic structural reforms that are being implemented are expected to support economic growth targets to accelerate the transition towards making Malaysia a high-income country.
“At the same time, local companies should take this opportunity to be more creative and innovative in offering quality products that meet the tastes of local people.
“This action will indirectly increase the demand for Malaysian-made products,” it said in reply to Senator Ahmad Ibrahim.
The senator had asked the ministry to state the percentage of economic growth for the beverage and food subsector at a time when most of the players in this industry are under pressure due to the boycott movement.
The conflict between Israel and Palestine which started last October prompted a movement by Malaysians to boycott some foreign businesses.
“This boycott caused consumers to switch to other businesses, such as locally branded food and beverage retail businesses,” the ministry said.
Decentralisation of power
In a separate written Dewan Negara reply, the economy ministry said there were currently no proposals or discussions regarding the decentralisation of power to state governments, particularly Sabah and Sarawak, in the context of trade and economic diplomacy.
The ministry said the Ninth Schedule of the Federal Constitution states that the federal government is tasked with maintaining relations with international organisations and implementing decisions made by such bodies.
“A forum has been established under the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) for chief ministers, governors, and heads of local governments to provide opportunities for the chief ministers of Sabah and Sarawak to express their views and suggestions related to Sabah and Sarawak,” it said.
The ministry said such considerations take into account the significant geographical positions of both states within the BIMP-EAGA sub-region.
The ministry was responding to a question by Senator Bobbey Suan on whether it would consider decentralising power to state governments, particularly Sabah and Sarawak, in the context of trade and economic diplomacy.
BIMP-EAGA is a sub-regional cooperation platform established in 1994 which covers Sabah, Sarawak, Labuan; Brunei Darussalam; the Indonesian provinces of Sulawesi, Kalimantan, Maluku, and Irian Jaya; and Mindanao and Palawan in the Philippines.
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