He said the government “must respect the decision, or else it would be viewed as contempt of court”.

He went on to say his ministry may appeal against the ruling but must first “examine the basis of the judgement thoroughly”.

Authorities raided Swatch shops across Malaysia in May 2023, but an order prohibiting sale of the watches was not issued until August 2023.

Therefore, Swatch had not committed an offence at the time of the seizure, the court ruled.

But the prohibition order has not been overturned, so although the watches – worth $14,000 (£10,700) – have been returned they cannot be sold.

The authorities must hand back the items within 14 days, government prosecutor Mohammad Sallehuddin Md Ali told the Kuala Lumpur High Court today.