KUALA LUMPUR (Dec 10): Prime Minister Datuk Seri Anwar Ibrahim said the government will cancel commitments to “one or two” drugmakers, while shifting to generic drugs, as part of efforts to address medical inflation.
Anwar on Tuesday acknowledged that the country’s drug costs have been rising uncontrollably, and that drug purchases in recent years have been monopolised. The Ministry of Health has been asked to source drugs from several countries for cheaper and more affordable generic options, he noted.
“These generic drugs are more commonly produced in countries like Brazil, India, and China, for example, where they are studied and not necessarily tied to America or Europe, where the costs are too high,” he told the lower house of Parliament during the prime ministerial question time.
Malaysia recorded a 12.6% medical inflation rate in 2023, more than double the global average of 5.6%. In response, insurers and takaful operators have been previously reported to be planning to raise policy premiums by 40% to 70% starting next year.
The sharp increase in premiums have prompted public outcry and calls for Bank Negara Malaysia — the agency that supervises and regulates the insurance industry — to intervene.
Anwar said that the central bank and the health ministry will implement controls to ensure that medical insurance premiums do not rise sharply to the point of burdening the public.
For more Parliament stories, click here.