BY KHIRTINI K KUMARAN

Bank Negara Malaysia ( BNM ) reported that between 2016 and 2019 , Medical Claim Inflation grew by 11.6 per cent annually . That saw insurers getting approval for hefty repricing for medical insurance premiums , hitting consumers even more .

To be sure , it ’ s not only Malaysia . Healthcare costs worldwide are rising , too , due to an ageing population , disease prevalence , technological advances and increased expenditure on medicines .

But what has been worrying this year is the steeper rise in medicine prices caused by the weaker ringgit , supply chain issues and global inflation . The prices of imported medications have significantly spiked , some by as much as 20 per cent .

Director-General of Health , Datuk Dr Radzi Abu Hassan , acknowledged that patients and governments face challenges due to the rising cost of medicines .

“ This is evident from the Ministry

Datuk Dr Radzi Abu Hassan

of Health ’ s ( MoH ’ s ) annual expenditure on medicines , which has increased . The increase in medicine prices and a rise in the number of patients significantly contribute to this increase in expenditure . The elevated cost of medicines impacts the procurement process and the selection of drugs for treating diseases .”

Based on the preliminary findings of the Consumer Price Guide study , among 221 products studied , 47.5 per cent of products have seen increased prices over 10 years since 2012 . Among the products with increased wholesale prices , the median percentage of price increment was 32 per cent ( minimum four per cent and maximum 240 per cent ).

Dr Radzi said the MoH is currently proposing the Medicines Price Transparency Mechanism ( MKHU ) to improve the transparency of medicines price information , empowering people to make informed choices to obtain medication at an affordable price , consequently reducing the cost of living for the people .

FACTORS INFLUENCING THE COST OF MEDICINES

According to Malaysian Pharmacists Society ( MPS ) President Amrahi Buang , there usually will be a price increase of 5-8 per cent once or twice a year .

The appreciating US dollar has led to higher prices for imported medicines .

“ This happens throughout the country , more so in rural areas ( Sabah and Sarawak ) because of logistics issues .” Various factors influence the cost of medicines in the commercial market .”

Dr Radzi shared : “ These factors include medicines utilisation , generic entry upon patent expiry , cost of infrastructure and manufacturing technology ( i . e . biologic products ), and current pricing policies in the country .

“ The Covid-19 pandemic , the Russia- Ukraine war and the ringgit ’ s depreciation against the US dollar have increased the costs of raw materials and logistics , resulting in a hike in medicines prices in Malaysia .

“ Currently , the price of medicines in Malaysia depends on market forces whereby price is determined by supply and demand . If many generic medicines or alternatives are available in the market , the price should be reduced .

“ However , medicines differ from other commodities because a patient ’ s clinical condition determines which medicines will be prescribed . Meanwhile , medicines registered by a single product registration holder , which is medicines without alternatives , may be sold at a higher price in the market due to the absence of competition .”

PATENT EXCLUSIVITY PROTECTION

The Malaysian Competition Commission ( MyCC ) Chief Executive Officer ( CEO ) Iskandar Ismail explained : “ Generally , there are three levels in the pharmaceutical market structure which consist of manufacturers and importers of drugs ( Level 1 ), wholesalers ’ operation , including distributors who operate under a wholesale licence ( Level 2 ), and providers who supply the drugs to the consumers ( Level 3 ).

“ Controlled medicine in Malaysia is dominated by multinational corporations ( MNCs ) importers and distributors . However , there is only a smaller size of local importers of generic medicines . The involvement of many companies and agents in the supply chain would