“We have consistently maintained that their claims were without merit and lacked legal foundation,” BDS Malaysia said in a statement.

However, it said, the fast-food chain will remain categorised under “Organic Boycott Targets”.

It said the company continues to be boycotted by conscientious individuals worldwide due to its alleged complicity with actions in Palestine.

“We urge the global community to persist in boycotting Israel and all entities complicit in the perpetuation of injustices until Palestine achieves freedom and justice for all its people,” it said.

Earlier today, McDonald’s Malaysia announced its decision to withdraw its suit against BDS Malaysia, following the mediation between the parties.

Last December, McDonald’s, through its franchise owner, Gerbang Alaf Restaurants Sdn Bhd, filed a defamation suit against BDS Malaysia.

It sought an unconditional apology from BDS Malaysia within 48 hours and RM6 million in damages, comprising RM3 million for loss of revenue, RM1.5 million for employees who were laid off and RM1.5 million for expiry of materials.

Gerbang Alaf Restaurants also sought an injunction against BDS Malaysia from repeating its calls for a boycott of McDonald’s restaurants, among other franchises, allegedly for “colluding with Israel in the genocide of the Palestinian people”.