Govt approved RM1.73bil for pharmaceutical, medical device investments Jan-Sept 2024

Govt approved RM1.73bil for pharmaceutical, medical device investments Jan-Sept 2024

07 Mar 2025

The government approved RM1.73 billion in investments for the pharmaceutical and medical devices sector in Malaysia between January and September last year.

Health Minister Datuk Seri Dr Dzulkefly Ahmad said the government is actively encouraging more international pharmaceutical companies to build drug manufacturing facilities in Malaysia.

One of the government’s efforts includes launching the Off-Take Plus Agreement Programme (PPO Plus) to ensure security in the supply of pharmaceutical products from local sources and to reduce costs, he said in a parliamentary written reply yesterday.

“During the tabling of the 2025 Budget on Oct 18, 2024, the prime minister announced that the government would implement an off-take or specific procurement policy for companies that make new domestic investments to manufacture pharmaceutical products and critical medical devices.

“The implementation of this programme is expected to begin in the second quarter of 2025,” he said.

Dzulkefly said the initiative was also meant to encourage technological transfers from international companies to Malaysians.

The programme prioritises local companies that offer pharmaceutical products or medical devices which have not been manufactured in Malaysia, which comes with the government’s commitment to procure 50 per cent of the product or any other amount it deems fit.

Additionally, companies dealing with drugs listed under the National Essential Medicines List (NEML), which typically consists of basic drugs that are required for public health, are also given priority to participate in the programme.

Moreover, companies that manufacture products under the Control of Drugs and Cosmetics Regulations 1984 and the Industrial Coordination Act 1975 are also given priority.

“Selected companies for the PPO Plus programme will go through a few stages of committee evaluations and contracts will be finalised on companies that are successful,

“Contract extensions will be considered if the company demonstrates a high commitment to meet the domestic market demand in producing pharmaceutical products and medical devices and potentially to be exported overseas,” said Dzulkefly.

The Health Ministry is also planning to go on sourcing missions to countries that produce pharmaceutical products to attract more investments and strengthen the supply of medicine to Malaysia.

The emphasis, said Dzulkefly, was on generic medicines and the missions would begin this year.

He said the ministry plans to visit China, India and Brazil to diversify its source of medicine supply in Malaysia.

In response to a question by Syerleena Abdul Rashid (PH-Bukit Bendera), he said the sourcing missions will also promote Malaysia as an ideal investment destination.

This, he added, would be done via engagements with organisations, supply companies, and international medicine manufacturers.

“This will help expand the market — economy of scale — for pharmaceutical manufacturers in Asean and thus increase medicine supply self-reliance among regional countries.

“This effort is in line with the aspirations of the Asean Drug Security and Self-Reliance (ADSSR) goal led by Malaysia.

“This effort will also ensure access to safe, good quality, effective and affordable medication in Asean to achieve universal health coverage,” he said.

Source: NST