The Ministry of Health does not tolerate any practice of price collusion, anti-competitive procurement of medicines

PUTRAJAYA: The Ministry of Health (KKM) will not tolerate any elements of exclusivity, price collusion, anti-competition, or practices that can compromise procurement management and contribute to increased procurement costs of medicines.

The Ministry of Health stated in a statement that the ministry takes seriously the practice of some pharmaceutical manufacturing and supplier companies that offer higher product prices to the government than to the private sector for some medicinal products.

“Especially single product registration holders, whether offering patent or generic products registered with the National Pharmaceutical Regulatory Division (NPRA),” according to the statement on Monday.

Several engagements and discussions were held with representatives of manufacturing companies, manufacturers of medicines and medical equipment, and pharmaceutical product registration holders.

Therefore, the ministry explained that improvements are being implemented to the MOH’s procurement policy and process, including the first phase, which is the reduction of bureaucratic red tape for approval applications from MOH agencies.

“It involves a joint venture with the Malaysian Productivity Corporation (MPC) to improve the approval process for the registration of medical devices and equipment under the Medical Devices Authority (MDA) and the application for approval for the establishment of private health facilities and facilities under the Private Medical Practice Control Branch (CKAPS).

“Now, the National Pharmaceutical Regulatory Division (NPRA) is re-examining the pharmaceutical product registration process to facilitate the registration of pharmaceutical products in the local market so that the Ministry of Health has more product options,” according to the statement.

The second phase, according to KKM, involves improving the procurement process, including the government’s right to renegotiate the price and supply of alternative products that are cheaper than contract products in certain circumstances with the company that won the tender, the rotation of officers, including technical officers involved in the procurement process and the presence of Unit officers Integrity as an observer in the Procurement Board.

The statement explained that the Ministry of Health is responsible for providing 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 reasonable.

“The expenditure allocation for pharmaceutical products by the Ministry of Health is in the range of RM5 billion to RM6 billion per year,” according to the statement, which welcomes and supports the aspirations of the Prime Minister, Datuk Seri Anwar Ibrahim who stated that the government’s focus in Budget 2025 is to address and reduce the cost of living for the people, which is caused by, among other things, leakage problems, corruption, cartels and monopolies.

According to the statement, the Ministry of Health took lessons from the experience when dealing with the global pandemic of COVID-19, which revealed the fragility of the local supply chain of pharmaceuticals and critical medical equipment due to capacity constraints and the ability of the local industry. The security and availability of the supply chain are also the main focus of the Ministry of Health.

“In doing so, the Ministry of Health has taken steps to examine and review the policy and process of procurement of pharmaceutical products and medical equipment that emphasize a sound administrative management system taking into account the principles of transparency, facilitating business, fair competition and the best return value in government procurement ,” according to the Ministry of Health. – AGENCIES