Malaysian pharmaceutical market to project modest growth amidst new reform

A new procurement system aims to address medicine shortages and supply chain disruptions.

The Malaysian pharmaceutical market is expected to grow moderately, with sales forecast to reach $2.3b (MYR10.4b) this year, a 6.2% increase in local currency terms, though growth is projected at 5.8% in US dollar terms due to currency fluctuations, said BMI.

The country has introduced a reform to its pharmaceutical procurement process, following a disruption in human insulin supply last August due to reported production issues at a local manufacturing plant.

“Malaysia’s Ministry of Health (MOH) announced that it will no longer operate under a single-supplier procurement system that awards pharmaceutical procurement contracts to a single drugmaker,” the report said.

Furthermore, the MOH’s new procurement system aims to address medicine shortages and supply chain disruptions, strengthen bargaining power, and introduce flexibility to source cheaper alternatives when necessary.

However, challenges persist, including regulatory inefficiencies that delay the approval of new drugs and limit timely access to government contracts.

“For drugmakers to fully benefit from the new procurement system, regulatory processes need to be aligned with procurement timelines, ensuring that approvals are expedited and synchronised with tender cycles,” the report added.