KUALA LUMPUR: Aprotracted boycott of brands associated with Israel may push away foreign investors keen to make new investments or boost their presence in Malaysia.
Analysts feel that a blanket boycott on certain well-known franchises will have maximum impact on local employees and business profitability but minimal impact on Israel itself.
Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said some of the brands snubbed may only have less than three aspects in their operations directly related to Israel.
"There will be no question raised if the products came directly from Israel, but the products boycotted are not Israeli products or made in Israel.
"In the future, the boycott may also impact franchises or big companies that want to invest in Malaysia. We need to rethink the boycott," Azmi told Business Times, noting also that the government should be involved in the boycott if it was for products that came direct from Israel.
"However, indirect boycotts should not involve the government because it will be interpreted as a policy, which sends a bad signal to future businesses that want to invest in Malaysia."
Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun said the effect of little to no new Western investment was likely to be felt sooner or later.
"A pull-out of Western investments is likely, as these boycotts are considered by them to be anti-Semitic. What described above is likely to materialise, as our competitiveness versus up-and-coming countries such as Vietnam is slipping anyway.
"So this is going to buttress Western investors' willingness to move to Vietnam instead."
Bank Muamalat Malaysia Bhd chief economist Mohd Afza-nizam Abdul Rashid said there was a need to understand the history of the current conflict and what implications it has on the Muslim world.
"Doing so will give us a better idea on the right course of action."
