Kuala Selangor, April 14 – Dr. Datuk Seri dzulkefly ahmad said the Ministry of Health (MOH) is taking steps to protect Malaysia's healthcare industry amidst the uncertainty surrounding the changes in potential tariffs by the US.
He said he is currently investigating alternative sources of generic drugs and medical devices from countries such as China and India to reduce dependence on the US and Europe.
“The ministry is also considering the number and value of contracts, including single registered holders, which are set to expire within the next 1-2 years, to assess the availability of alternative generic products in the market.
“The National Drug Regulatory Agency (NPRA) will provide a green lane for processing applications for registration of generic products, particularly from China and India,” he said at a press conference today after attending the official launch of KPJ Kuala Selangor Specialist Hospital and the open house in Harilaya.
Dr. Dzulkefly said that between the first quarter of 2023 and 2025, a total of 12 contracts between MOH and local pharmaceutical companies, including drugs sourced from the US, had been signed to RM162.47 million (US$36.43 million). These contracts are set to expire gradually from 2026.
He said if the US inherits mutual tariffs on the ingredients used in these products, continuing to procure drugs from the US could lead to increased costs.
“The cost of imported drugs and medical devices increases as the active pharmaceutical ingredients (APIs) used in ingredients in drug or tariff-affected medical devices increase.
“Local generic drug producers may bear higher costs when procuring APIs from overseas due to increased demand from US drug suppliers,” he said.
He said the pharmaceutical company that currently exports its products is Novugen Pharma Sdn, including cancer therapy, cardiology, oncology and injection solutions to the US. BHD and BIOCON SDN BHD.
Dr Dzulkefly said the ministry held engagement sessions with major industrial associations representing major US pharmaceutical companies on April 9th, and that these associations included the Malaysian Pharmaceutical Association (Fama) and the Malaysian Pharmaceutical Industry Organization (MOPI).
Other actors involved were the Malaysian Pharmaceutical Suppliers Association (MAPS), Malaysian Medical Devices Association (MMDA), and Malaysian Medical Industry Association (AMMI).
In 2024, Dr. Dzulkefly said that Malaysian medical devices exports to the US were valued at RM136.9 billion (US$3.07 billion), accounting for 36.97% of the country's global medical devices exports, which was RM3.703 billion.
Of the RM1.369 billion to the US, RM501 billion, or 36.6% consisted of surgical and laboratory gloves.
He said in 2024 Malaysia's drug exports to the US were valued at RM560 million, with 18.48% of the country's total drug exports being valued at RM303 million.
“We are closely monitoring development, particularly with the recent 90-day tariff suspension announced by US President Donald Trump.
“At the moment, drugs are reportedly on the exempt list, but it's not yet clear when it comes to medical devices. So we'll continue to monitor the situation closely and respond appropriately. All challenges also bring opportunities,” he said.
On the question of whether the ministry is open to price negotiations, Dr. Dzulkefly said that MOH is accepting all means of navigating the current situation for the nation.
“That's the path ahead. But it's not under my portfolio, because it's handled by the Ministry of Investment, Trade, Industry and Treasury,” he added. – Bernama
