MOH Strictly Opposes Price Collusion, Anti-competitive Practices In Medicine Procurement

PUTRAJAYA, Aug 12 (Bernama) -- The Ministry of Health (MOH) will not tolerate any form of exclusivity, price collusion, anti-competitive practices, or procurement management issues, which contribute to the increase in the cost of procurement of medicines.

The MOH is particularly concerned about instances where pharmaceutical manufacturers and suppliers charge the government higher prices for certain products, compared with those offered in the private sector.

“Especially single product registration holders, whether for patented or generic products registered with the National Pharmaceutical Regulatory Agency (NPRA),” the ministry said in a statement today.

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In response, the MOH has conducted several engagement sessions with representatives from manufacturing companies, medicine and medical equipment producers, and Pharmaceutical Product Registration Holders.

To address these issues, the ministry is implementing improvements to its procurement policy and process. The first phase of these improvements focuses on reducing bureaucratic red tape, associated with approval applications from its agencies.

It involves collaborating with the Malaysian Productivity Corporation (MPC) to streamline the approval process for the registration of medical devices and equipment, under the Medical Device Authority (MDA), and the approval of private health facilities and practices, under the Private Medical Practice Control Section (CKAPS).

“The NPRA is currently re-evaluating the pharmaceutical product registration process, to simplify the approval of products in the local market, thereby providing the MOH with a broader range of options,” read the statement.

It said that the second phase focuses on enhancing the procurement process, which includes the government’s ability to renegotiate prices and consider cheaper alternative products in certain circumstances. This phase also involves the rotation of officers, including technical personnel involved in procurement, and the inclusion of Integrity Unit officers as observers on the Procurement Board.

It said that it is its responsibility to provide the best health services, at a reasonable cost to the people, and this can be achieved if the purchase price of pharmaceutical products and medical equipment is kept reasonable.

“The annual expenditure allocation for pharmaceutical products by the MOH ranges from RM5 billion to RM6 billion,” the ministry said, adding that it welcomes and supports Prime Minister Datuk Seri Anwar Ibrahim’s focus for Budget 2025, which aims to address and reduce the cost of living by tackling issues such as leakages, corruption, cartels and monopolies.

It has also drawn lessons from the COVID-19 pandemic, which highlighted the vulnerabilities in the local supply chain for pharmaceuticals and critical medical equipment. Ensuring the security and availability of the supply chain remains the ministry’s key priority.

The ministry is also reviewing its procurement policies and processes, to ensure that they are based on principles of transparency, fair competition, and the best value for government expenditure..

-- BERNAMA