Malaysia’s local pharmaceutical industry plays a crucial role in ensuring the country’s medicine security, with more than half of the medicines in the domestic market produced by local manufacturers. Stakeholders emphasize that continued development of this sector is vital for maintaining a stable supply of affordable and quality medicines, particularly generic drugs, which serve as alternatives to originator products.
Ch’ng Kien Peng, president of the Malaysian Organisation of Pharmaceutical Industries, highlighted that generic medicines operate within a competitive environment that helps keep prices reasonable. He noted that locally manufactured generics meet world-class quality standards, as verified by the National Pharmaceutical Regulatory Agency, which ensures compliance with the internationally recognized Pharmaceutical Inspection Co-operation Scheme. According to Ch’ng, guaranteeing Malaysians’ access to high-quality, affordable generics relies on consistent supply supported by local production.
Ch’ng also stressed the importance for local manufacturers to invest in product development, technology transfer, regulatory compliance, and quality assurance to uphold medicine quality and availability. He pointed out that while imports contribute to competitive pricing and diversity, domestic manufacturing adds an essential element of supply resilience, particularly when international supply chains face disruptions. The government’s efforts to bolster local pharmaceutical manufacturing are aligned with broader economic and industrial policies, including initiatives under the 13th Malaysia Plan, the New Industrial Master Plan 2030, and the National Investment Aspirations.
In 2025, the Health Ministry spent RM3.86 billion on medicines through three procurement channels: medical supply logistics services concessions, central contracts, and direct purchases by healthcare facilities. Of the nearly 4,000 types of medicines procured, generics accounted for around 3,170 items, representing 77.88% of the total value at RM3.01 billion, while innovator drugs made up 22.12%, valued at RM850 million.
Datuk Zulkifli Jafar, managing director of Pharmaniaga Bhd—one of the ministry’s drug concessionaires—stated that Malaysia maintains a secure medicine supply despite ongoing global geopolitical uncertainties. He noted that buffer stocks are sufficient to support the country through the end of the year.
Additionally, the Public Accounts Committee report released in June cited remarks from then Health Ministry secretary-general Datuk Seri Suriani Ahmad during a February 2025 hearing. Suriani indicated that the ministry intends to diversify its procurement strategy by exploring suppliers beyond traditional sources. Plans include outsourcing arrangements aimed at securing more competitive pricing from countries such as India, China, Turkiye, Egypt, Thailand, and Indonesia.
This multifaceted approach underscores Malaysia’s commitment to enhancing medicine security through local industry development while also adapting to global market dynamics to ensure consistent and affordable access to essential medicines for its population.