Finance Minister Lim Guan Eng today said that Putrajaya will be re-looking its existing contract with drug concessionaire Pharmaniaga Bhd, expressing concern on the effects of a drug provision monopoly on public healthcare cost. — Picture by Ahmad Zamzahuri
“The Government is also concerned with monopoly power over the provision of drugs and its effects on healthcare cost. We are currently studying the existing contact between the Government and Pharmaniaga to find the best way forward to address the problem. “This is especially as Malaysia’s demographic profile is getting older. In 2020, it is projected that seven per cent of Malaysians will be 65 years old or older. By 2045, it is projected to hit 14 per cent,” he said.
“As tabled during the 2019 budget, the Ministry of Health received a total allocation of RM28.7 billion, or approximately nine per cent of the total budget spending. The RM28.7 billion allocation is about 8 per cent higher than it was in 2017. This made the [Health] Ministry among the largest ministries in terms of spending.
Pharmaniaga however, later dismissed claims that it is monopolising the supply of medicines to MOH, saying only 33 per cent of the ministry’s supplies come from the group, the business daily reported.