In 2018, former Klang Member of Parliament, Charles Santiago, raised concerns about the involvement of politically-linked tender agents in Malaysia’s pharmaceutical procurement. He alleged that these intermediaries were causing drug prices to increase by billions of ringgit.
Charles Santiago’s Political Developments: Charles Santiago served as the Klang Member of Parliament until the 15th General Election (GE15) in November 2022. He was subsequently replaced by V. Ganabatirau. In March 2023, Santiago was appointed as Chairman of the National Water Services Commission (SPAN) for the term 2023 to 2025. (malaymail.com)
Pharmaceutical Procurement Reforms by the Government:
To address transparency issues in pharmaceutical procurement, the Ministry of Health Malaysia (MOH) has implemented several reforms:
Diversification of Suppliers: Health Minister Datuk Seri Dzulkefly Ahmad announced that the MOH will no longer award pharmaceutical procurement contracts to a single company. This move aims to ensure stable drug supply and prevent disruptions, such as the human insulin shortage in August 2024. (theedgemalaysia.com)
Increased Spending and Policy Adjustment: The government’s expenditure on medicines rose to RM3 billion in 2023, a 30% increase from RM2.3 billion in 2015. The main factors contributing to this increase are the rising cost of medicines, the growing number of patients, and the introduction of new drugs. The MOH is now considering the use of insulin analogs and negotiating better prices to diversify supply sources. (malaymail.com)
Support for Local Pharmaceutical Industry: The MOH has proposed a three-year contract for local pharmaceutical companies to produce essential medicines whose patents have expired. This policy, known as the “Off-Take Policy 2.0,” aims to improve drug supply security, reduce drug prices, and strengthen the local pharmaceutical industry. (codeblue.galencentre.org)