McDonald's Malaysia has filed a lawsuit against a local boycott group, BDS Malaysia, for defamation over social media posts linking the fast-food chain to Israel's military offensive in Gaza that it says hurt business. The lawsuit seeks damages of 6 million ringgit ($1.31 million).

Malaysia, a Muslim-majority country, has been a vocal critic of Israel's actions in Gaza and has supported calls for boycotts of Israeli and companies perceived as supporting Israel. BDS Malaysia is a local chapter of the Boycott, Divestment, and Sanctions (BDS) movement, which advocates for non-violent pressure on Israel to end its occupation of Palestinian territories and comply with international law.

In a writ of summons filed on December 19, McDonald's Malaysia licensee Gerbang Alaf Restaurants Sdn Bhd accused BDS Malaysia of inciting the public to boycott McDonald's outlets in the country through a series of social media posts. The posts, it alleged, linked the fast-food franchise, among other companies, to Israel's "genocidal war against Palestinians in Gaza".

The company alleges that the boycott campaign has led to a loss of profits and job cuts due to reduced operating hours and closures of some of its restaurants.

"The false and defamatory statements made by the defendants have caused significant damage to the plaintiff's reputation and business," the writ of summons states. "The plaintiff seeks damages of 6 million ringgit to compensate for the losses it has suffered as a result of the defendants' actions."

BDS Malaysia has denied the allegations and said it will defend itself in court.

"We categorically deny defaming McDonald's Malaysia," BDS Malaysia said in a statement. "We believe that our criticism of Israel's actions in Gaza is fair and accurate, and we will not be silenced by threats of legal action."

The BDS movement aims to end international support for Israel's "oppression of Palestinians" and pressure Israel to comply with international law.

The outcome of the lawsuit between McDonald's Malaysia and BDS Malaysia could have implications for the broader boycott movement and freedom of speech in Malaysia.