Despite the ongoing boycott movement, Malaysia continues to experience positive economic growth, with a 4.2% increase in the first quarter of 2024. This growth is attributed to the resilient domestic economic activities in the country. However, the movement has slightly affected the employment sector. According to the Ministry of Economy, there has been a rise in the number of workers losing their jobs, as reported by the Employment Insurance System Report by the Social Security Organisation (Socso).
From January to May 2024, a total of 22,315 workers lost their jobs, compared to 18,026 during the same period in 2023, marking a 23.8% increase. Of these job losses, 1,091 workers (4.9%) were from the accommodation and food service activities sector. The ministry revealed that 583 workers (50.7% of reported job losses) were due to business closures and downsizing. It is important to note that this data reflects job losses across various sectors and is not exclusive to the food and beverage sector.
Despite some concerns about its impact on national economy , it appears that food and beverage businesses have not contributed significantly to GDP . According to Ministry of Economy statistics , contribution from F&B sub-sector was small at 2.3% in 2023 and 2.4% in first quarter of 2024 . Additionally , consumers tendency towards supporting locally branded products helps balance out impact and boost domestic economic activities .