Boycott Divestment Sanctions Malaysia (BDS Malaysia) said a statement by Gerbang Alaf Restaurants Sdn Bhd (GAR), the local McDonald’s franchisee, that it decided to withdraw its legal suit against BDS Malaysia, was not accurate.

In a statement, the boycott advocacy group said the suit was not yet fully withdrawn as it had yet to agree upon withdrawal terms.

“BDS Malaysia feels compelled to...