As violence continues to hammer the Gaza Strip, Muslim groups are calling for a boycott of goods produced by The Coca-Cola Company (NYSE: KO), Starbucks Corporation (NASDAQ: SBUX), and other U.S. companies. The boycott is meant to protest the alliance between Israel and the U.S., and it comes as the U.S. embassy in Malaysia is being swarmed with thousands of angry protesters.
"We urge Muslim consumers internationally to unite so that we can teach a lesson to Israel and its allies," said Ma'amor Osman, an official with the Muslim Consumers Association of Malaysia. "This is to object to the arrogance and cruelty of Israel and its allies towards the Palestinians."
Additionally, the group is urging the Malaysian government to cease its contract agreements with U.S.-based firms. Former Malaysian premier Mahathir Mohamad is also jumping on the bandwagon, calling for Muslims to stop using the U.S. dollar. "If enough of us do this, then [the dollar's] value will fall, just like what they did to us in 1997," he asserted.
The boycott is also being supported by the Malaysian Islamic Consumers Association and the Muslim Restaurant Operators Association. The latter group has already yanked Coke products from the menu at thousands of restaurants across the country.
Coca-Cola scrambled today to issue a response. "We are deeply touched by the human side of the situation in the Middle East," said Kadri Taib, the firm's public affairs and communications director in Malaysia. "Given the local nature of our business, we believe that calls for boycotts of our products are not the appropriate way to further any causes, as they primarily hurt the local economy, local businesses and local citizens."
According to KO, it employes 1,700 Malaysians, and 60% of that group identify as Muslim.
Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.
Reader Comments (Page 1 of 1)
1-09-2009 @ 12:36PM
Scott Wee said...
I find it extremely ironic that the Malaysian Muslims that are clamoring for equitable treatment for their Palestinian brethren are themselves guilty of extreme discrimination against minority groups in their own country. It is an open secret that Malaysian Chinese and Indians have to deal with negative affirmative-action policies handed down by these hypocritical Muslims. Just like any other "boycotts" in the past, this one will garner the necessary 15 minutes of fame before the ringleaders all disperse for a nice, cold Coke. As for Mahathir, he's been on an anti-US-Dollar-as-fiat-currency drive ever since George Soros' currency trading antics devalued the Malaysian Ringgit in the late 90s during the Asian currency crisis. He's an opportunist who will take advantage of every opportunity to push his vision of the Arabic Dinar as an alternative trading currency. All-in-all, business as usual in beautiful Malaysia.
1-09-2009 @ 1:56PM
Miguel said...
I will happily pick up the slack and purchase more Coca-Cola products.
Seriously though, correct me if I am wrong, but if Muslims in possession of the US currency indeed hold on to it, wouldn't that increase the value of the dollar?