KUALA LUMPUR, March 22 — McDonald’s Malaysia has dropped its defamation suit against pro-Palestinian group Boycott, Divestment, Sanctions (BDS) Malaysia over a boycott of its burger chain.

Its managing director and local operating partner Datuk Azmir Jaafar said they have withdrawn the suit after a process of mediation between both parties.

"McDonald’s Malaysia filed a brand defamation legal suit to clarify McDonald’s Malaysia’s position on the Middle East conflict. With the positive outcome of the mediation and clarifications made by BDS in their recent statements, acknowledging that the actions of McDonald’s operator in Israel are wholly independent of McDonald’s Malaysia, we will be withdrawing the legal suit.

"Our stance remains firm. We do not support nor are we complicit in any conflicts or wars. Having operated for more than four decades in Malaysia and being a 100 per cent Muslim-owned business, we are proud to be a member of the local community unwavering in our commitment to transparency, ethical business practices, and social responsibility towards Malaysians,” he said in a statement today.

McDonalds vehemently condemns all forms of violence and earnestly prays for an end to the war, ushering in sustained peace. It said the company continues its support for Palestinians affected by the violence by contributing to the Palestine Humanitarian Fund and organising various employee fundraising initiatives to further aid relief efforts in Gaza.

"We hope that the decision made today will allow all parties to move forward and focus on finding a resolution that upholds justice,” he added.

Last year, when the suit was filed, McDonalds Malaysia sought RM6 million in damages. Gerbang Alaf Restaurants Sdn Bhd (GAR), which is the licensee of McDonald’s sued BDS for a series of social media postings allegedly linking the fast-food franchise, among other companies, to Israel’s "genocidal war against Palestinians in Gaza”.

According to a writ of summons Gerbang Alaf Restaurants alleged that BDS Malaysia incited the public to boycott McDonald’s Malaysia, which led to a loss of profit and job cuts, among other damages, due to closures and shortened operating hours of its outlets.