LPOs can only cover a handful of patients due to limited hospital budgets; it\u2019s also unusual for hospitals to have to rely on one-time local orders so early in the year.\u00a0<\/p>\n<\/blockquote>\n
\u201cThe hospitals have to be very innovative in their procurement,\u201d another source told CodeBlue. Large centres with many dialysis patients, for example, are requesting smaller district hospitals with fewer patients to use their own budgets to help purchase dialysis products for them.<\/p>\n
Nephrologists, pharmacists, and nurses are now dealing with extra paperwork, on top of regular clinical duties, to figure out which dialysis products to purchase, based on the patient\u2019s needs and hospital budget, to ensure continuity of treatment.<\/p>\n
\u201cHealth care professionals are really concerned because they do not want any casualties. If they don\u2019t have stock, they may not be able to perform dialysis,\u201d said the source. \u201cThese are existing patients. What happens when there are new patients?\u201d<\/p>\n
Drug Procurement Takes Six To Nine Months\u00a0<\/strong><\/p>\n A drug procurement process in the government takes at least half a year. Even if MOH Putrajaya were to open a tender for dialysis products today, it would take six months for the tender to be awarded, according to the source, adding that the supplier can deliver the dialysis product within 14 days following the award of the tender.<\/p>\n Other sources, however, said it would take much longer to import medicines in general, following six to nine months for a tender to be awarded.<\/p>\n \u201cOrders may take several months to prepare as there will often be no ready stockpile available in-country. They will need to be delivered from other countries such as Europe, China, Egypt, or India,\u201d a source told CodeBlue.<\/p>\n \u201cBuying pallet loads of medicines is not like participating in a supermarket buying club, pushing a trolley down the aisle. There are agreements to be signed, orders to be made, and deliveries to execute. They take a lot of time.\u201d<\/p>\n<\/blockquote>\n Besides delays in opening new drug tenders, MOH Putrajaya has also allegedly called for renewed tenders \u201cvery late\u201d, such as close to a month to the end date of a previous tender.<\/p>\n \u201cThere\u2019s a limitation in procurement when the tender lapses; hospital guys are complaining,\u201d said another industry source.\u00a0<\/p>\n The source noted that LPOs can only go so far as a hospital\u2019s budget for this may be RM50,000 a year, for example, whereas a month\u2019s worth of drugs can perhaps cost RM200,000.<\/p>\n LPOs may also be up to three times more expensive than procurement made at the national level, due to the much smaller volumes purchased.<\/p>\n MOH Procuring 100% To 200% Costlier Generics Than Branded Drugs<\/strong><\/p>\n Another major procurement issue is the MOH\u2019s decisions over the past six months to a year to purchase locally made generic medications that were two to three times more expensive than off-patent innovators.\u00a0<\/p>\n CodeBlue understands that for at least three products \u2013 medicines used for atrial fibrillation, breast cancer, or post-surgery pain relief \u2013 the MOH procured the generic versions at 100 to 200 per cent higher prices than the branded drugs.<\/p>\n \u201cWe heeded the government\u2019s call for lower prices. Since the drug was off-patent, we reduced prices, so why on earth did the government buy generics?\u201d an industry source told CodeBlue.\u00a0<\/p>\n Another industry source said: \u201cThere is no level playing field now. You say you want lower prices, but when we give you cheaper, you still don\u2019t want it. So what\u2019s your criteria? You\u2019re not being transparent.\u201d<\/p>\n<\/blockquote>\n The source questioned if the government was prioritising local pharmaceutical companies over people\u2019s health, saying: \u201cLocal manufacturing is an economic priority, not a health care need. Is MOH prioritising the economy or health care?\u201d<\/p>\n The MOH allegedly did not even invite pharmaceutical MNCs to bid for certain tenders that were opened instead only to local drug manufacturers; at least two MNCs were affected by these exclusions.<\/p>\n A third industry source questioned why certain local generics manufacturers were allowed to submit bids after tenders were closed.\u00a0<\/p>\n The MOH\u2019s double supplier mandate<\/a> in pharmaceutical procurement has also come into question, as the source pointed out that tenders aren\u2019t split equally between generics and innovators, despite the ministry\u2019s purported aim of boosting medicine security through its requirement for at least two suppliers.\u00a0<\/p>\n \u201cInstead, generics to innovators are either 70:30 or 75:25 \u2013 what\u2019s the basis for it?\u201d<\/p>\n Some industry sources took issue with the Skim Anak Angkat (SAA) or Skim Panel Pembuat Bumiputera (SPPB) programmes in the pharmaceutical sector that aim to boost the capacity of Bumiputera manufacturers.<\/p>\n Certain companies under the Anak Angkat programme allegedly won drug tenders via direct negotiation as tenders were not advertised, affecting not just MNCs, but also local generics manufacturers.<\/p>\n \u201cI don\u2019t even have a chance to give you my price,\u201d one source complained.<\/p>\n SAA\/SPPB isn\u2019t new, having existed under previous administrations. According to a 2021 public consultation paper<\/a> by the Ministry of Finance (MOF) for the 2022 budget, items under the Approved Product Purchase List (APPL) \u2013 the government\u2019s branded and generic drug and medicine supply \u2013 can be directly procured from companies in SAA or a few companies under SPPB.<\/p>\n MOF Stops Displaying Value Of Competing Bids In Drug Procurement<\/strong><\/p>\n Another source of industry dissatisfaction is the MOH sometimes not fulfilling the quantity contracted in drug tenders, be it branded or generic medicines, with the ministry ending up buying less than what was initially agreed upon.<\/p>\n \u201cIt\u2019s quite scary for us. We\u2019ve already put in our orders, which we have to put in four to six months in advance. Suddenly, they don\u2019t buy everything,\u201d the source lamented.<\/p>\n \u201cSome companies have very big business in government and have no capacity to sell to the private sector, so they\u2019re stuck with the stock.\u201d\u00a0<\/p>\n Since the start of the year, the MOF reportedly stopped publishing, on the government\u2019s ePerolehan portal<\/a>, the value of competing tender bids submitted in medicine procurement, displaying just the winning company and its tender value.<\/p>\n \u201cWe\u2019re all angry that we can\u2019t see the pricing,\u201d an industry source told CodeBlue.<\/p>\n<\/blockquote>\n \u201cPreviously, if say five companies bid on a tender, we would know if we were the most expensive or the cheapest.\u201d<\/p>\n Another source said the lack of transparency in the government\u2019s drug procurement has caused anxiety in the industry.<\/p>\n \u201cNow everyone is jittery. The general environment is uncertain due to the opaqueness of the drug procurement process.\u201d<\/p>\n Pharma MNCs Reluctant To Launch New Drugs In Malaysia<\/strong><\/p>\n The MOH\u2019s perceived procurement strategy in prioritising local over imported pharmaceutical products \u2013 even if imported (branded) medications are cheaper than locally made (generic) drugs \u2013 may disincentivise pharmaceutical MNCs from launching new products in Malaysia.<\/p>\n One drug maker, an industry source noted, only launched one product in Malaysia in the last five years, but 20 products in other countries. This particular pharmaceutical MNC is reportedly upset at the MOH over the \u201clack of transparency and fair practices in tender issues.\u201d<\/p>\n \u201cCompanies are already saying they don\u2019t want to launch new drugs in Malaysia for the next five years,\u201d the source told CodeBlue.<\/p>\n \u201cBy squeezing MNCs, MOH is making the latest drugs unavailable in the country. You talk about accessibility and affordability, but you\u2019re forgetting about availability.\u201d<\/p>\n<\/blockquote>\n \u201cThe impression is that it\u2019s getting increasingly hard to do business in Malaysia. As a small market compared to the rest of the world, we stand to lose from not getting new medicines in future.\u201d<\/p>\n Pharmaceutical MNCs are also reluctant to build manufacturing facilities in Malaysia due to these perceptions: lack of talent, poor incentives, difficulty in getting early approvals, challenges for early access, too much bureaucracy, practices are \u201cnot transparent\u201d, the government not understanding what businesses need to succeed, increasing inclination towards halal regulations, an inefficient economic development board compared to Singapore, and intellectual property (IP) protection not being a priority.<\/p>\n \u201cI\u2019m so fed up,\u201d said the industry source.<\/p>\n According to the most recent data from the Pharmaceutical Research and Manufacturers of America (PhRMA), as sighted by CodeBlue, only 22 per cent of new medicines are available in Malaysia.<\/p>\n New medicines are delayed nearly three years in Malaysia after global first launch. Only 2 per cent of new medicines are launched in Malaysia within one year of global first launch.\u00a0<\/p>\n Another source stressed the importance of predictability, reliability, and trust for building and growing businesses in any country.<\/p>\n \u201cIf countries are seen as risky and unpredictable markets for investment, for trade, and for business, they are less likely to see registrations and launches of new pharmaceutical products, to be locations for clinical trials, and places for research and development (R&D) for pharmaceutical innovation. They are all linked.\u201d<\/p>\n Malaysian Generics Manufacturers Face Stiff Competition From China<\/strong><\/p>\n Foreign drug makers aren\u2019t the only ones frustrated with the government\u2019s medicine procurement practices, but also some local generics manufacturers.<\/p>\n Two sources complained about the lack of government support for the local pharmaceutical industry, amid increasingly stiff competition from China.<\/p>\n One big concern is the APPL listing of medicines from China and India that undergo blistering in Malaysia with very small local companies. These products are sold to the government at very competitive prices.<\/p>\n \u201cLocal manufacturers find it very hard to match Chinese drugs,\u201d the source told CodeBlue, describing generic medicines from China as being both very affordable and high quality.<\/p>\n \u201cThese Chinese products are winning MOH tenders.\u201d<\/p>\n<\/blockquote>\n For the past few years, the government has been importing generic medicines from China that are \u201cway cheaper\u201d than locally made products. Malaysia\u2019s pharmaceutical industry faces difficulty competing with such low prices enabled by China\u2019s economies of scale and subsidies for local manufacturers.<\/p>\n \u201cOur government should subsidise the local operations of generic manufacturers,\u201d the source said.\u00a0<\/p>\n \u201cIf we want health security, we need to create an ecosystem for it. Then we can create an export market, like how we export semiconductors. The pharmaceutical industry is health security.\u201d<\/p>\n Bangladesh Pharmaceuticals Two Decades Ahead Of Malaysia<\/strong><\/p>\n Another industry source described lower prices for off-patent innovative medicines as \u201cpredatory pricing\u201d by foreign drug makers.<\/p>\n The source related how a local company invested RM40 million into R&D for the generic version of a targeted therapy and offered the cancer drug at nearly cost price, but the MOH ended up purchasing the MNC\u2019s cheaper off-patent innovator a few years ago instead.<\/p>\n \u201cFor new drugs where generic players just finished spending money on development and new equipment, among others, they will not be able to compete with predatory pricing,\u201d the source told CodeBlue.<\/p>\n \u201cThe government needs to decide \u2013 do you want this industry or not? If you don\u2019t want this industry, then you can just buy imported generics from India and China. Just tell generic players in Malaysia, \u2018the government will no longer support you\u2019.\u201d<\/p>\n<\/blockquote>\n Global pharmaceutical companies are able to subsidise their off-patent drugs from the profit of patented products, the source said, citing how the United States sales of Novo Nordisk\u2019s blockbuster weight loss drug Ozempic alone exceed all generic medicines sold in that country.<\/p>\n The source explained that generics manufacturers in Malaysia cannot make much money exporting to other countries, unlike countries like Bangladesh that is a major generics exporter, including to highly regulated markets like the European Union and Australia.<\/p>\n \u201cBangladesh pharmaceuticals are 20 years ahead of our pharmaceuticals,\u201d said the source.\u00a0<\/p>\n \u201cIn Bangladesh, the government knows how to support the industry. In Malaysia, they say in front of players that they support generic, but behind closed doors, we know they\u2019re best friends with the MNCs.\u201d<\/p>\n Although Malaysia\u2019s total global export value <\/a>of pharmaceutical products at US$680 million in 2024 exceeds Bangladesh\u2019s<\/a> US$177.4 million in pharmaceutical exports (between July 2024 and April 2025), the source described Bangladesh\u2019s pharmaceutical sector as more strategically advanced than Malaysia despite a lower absolute export value.<\/p>\n \u201cBangladesh created a homegrown pharma ecosystem, backed by government, financing, and local ownership, whereas Malaysia has no equivalent long-term pharma industrial policy and most of the market is dominated by foreign multinationals and imported drugs,\u201d said the source, adding that Bangladesh is even self-sufficient in its medicine needs, unlike Malaysia.<\/p>\n\n
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![\"\"](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/07\/new_meds_in_malaysia.jpg\")
Percentage of new medicines launched by Asia-Pacific market (of all 460 new medicines launched from 2012 to end of 2021). Graphic from the Pharmaceutical Research and Manufacturers of America (PhRMA).<\/p>\n\n
![\"\"](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/07\/new_meds_in_malaysia_by_global_launch.jpg\")
Average months from global first launch to local launch by Asia-Pacific market (of new medicines launched by market from 2012 to end of 2021). Graphic from the Pharmaceutical Research and Manufacturers of America (PhRMA).<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/07\/new_meds_in_malaysia_by_percentage.jpg\")
Percentage of new medicines launched within one year of global first launch in Asia-Pacific by market (of all 460 new medicines launched from 2012 to end of 2021). Graphic from the Pharmaceutical Research and Manufacturers of America (PhRMA).<\/p>\n\n
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