Vincent Tan Appeals to Malaysians to Stop Boycott of Starbucks Malaysia
Vincent Tan, the founder and advisor for Berjaya Corporation, has appealed to Malaysians to stop the boycott of Starbucks Malaysia. At a press conference, Tan explained that Starbucks Malaysia is owned by BFood, a Malaysian company, and operates as a franchise. He highlighted that 85% of the staff at Starbucks Malaysia stores are Muslim workers and called the boycott unnecessary, stating, “This boycott does not benefit anyone. Whatever you do is not going to change Israel and what Israel wants to do.”
RHB Group’s advisory to investors in December recommended selling their shares in Berjaya Food, the franchise owner, citing a significant drop in stock prices and a 30% fall in foot traffic at Starbucks outlets. RHB Group also lowered its forecasts for Starbucks’ net profit for the financial years 2024-2026.
In response to the boycott and to clarify misinformation, Starbucks released a statement emphasizing its commitment to humanity and as a non-political organization. The statement clarified that neither Starbucks nor Howard Schultz, the company’s former chairman, president, and CEO, provide financial support to the Israeli government or the Israeli Army. The statement reiterated Starbucks’ condemnation of violence and its commitment to not using its profits to fund any government or military operations. Starbucks in Malaysia is wholly-owned by a public-listed Malaysian company.
Analyst comment
Neutral news. The appeal to stop the boycott of Starbucks Malaysia by Vincent Tan is trying to mitigate the negative impact on the market. However, RHB Group’s advisory and slashed profit forecasts indicate a potential downturn. The statement released by Starbucks aims to address the misinformation but its effectiveness is uncertain. Overall, the market may experience some turbulence in the near future.
