KUALA LUMPUR, April 11 — The Malaysian Association of Pharmaceutical Suppliers (MAPS) has warned that the ripple effects of the United States’ trade actions could raise the cost of pharmaceuticals imported by Malaysia.
MAPS president Lim Teng Chyuan said that while pharmaceuticals are currently excluded from the US reciprocal tariff list, the situation remains fluid. “There are reports that tariffs on pharmaceuticals, starting at 25 per cent, are in the works,” Lim told CodeBlue when contacted.
MAPS member companies are generally importers of pharmaceuticals. Collectively, its members are product registration holders for nine US-based manufacturers: Adh Health Products Inc, C.B. Fleet Company Incorporated, Earths Creation, Eckhart Corporation, Mission Pharmacal Company, Patheon Pharmaceuticals Inc, Piramal Critical Care Inc, Soft Gel Technologies Inc and Vitaquest International LLC.
Lim said while the US tariffs technically do not impact MAPS members directly, broader economic effects could still filter down into the Malaysian market.
“The tariffs are anticipated to increase costs of entry of many products into the US, which could lead to upward pressure on inflation on material costs. US companies may also need to adjust payroll to deal with inflation. The inflation would most likely be passed on to all purchasers, including to the export markets,” Lim said.
He added that sustained high interest rates in the US – a likely policy response to inflation – could strengthen the US dollar, putting further pressure on importers.
“This will impact not only US-sourced products but most local importers, as the greenback is still the most widely used currency of cross-border trade. Local distributors will have to manage this cost increase, whether to pass the cost through or absorb part of the increase, affecting the bottom line.”
On April 2, US President Donald Trump announced “reciprocal tariffs” on imports from about 90 countries, aimed at reducing the US trade deficit that sparked fears of a global trade war and rattled financial markets. Malaysia was subjected to a 24 per cent tariff under the new framework.
The announcement contributed to a weakening of the ringgit, which slid from 4.454 against the US dollar on April 2 to as low as 4.496 on Wednesday (April 9) – its weakest level since January.
However, in a partial reversal, Trump announced Wednesday a 90-day pause on the reciprocal tariffs, stating that most countries would instead face a reduced 10 per cent rate. China was the key exception, with tariffs on Chinese imports set to rise to 125 per cent.
Following the revised US stance, the ringgit regained some ground, strengthening to 4.470 at market close as investor sentiment stabilised. Despite the pause, uncertainty persists over sector-specific tariffs and a broader escalation in trade tensions. Yesterday, after market close in Malaysia, the White House confirmed that the US tariff on Chinese imports now totals 145 per cent, including an earlier 20 per cent fentanyl-related tariff.
While MAPS members generally have more flexibility to diversify supply sources than local subsidiaries of multinational manufacturers, Lim noted that exclusivity agreements and non-competitive clauses with current partners can still be limiting. Switching suppliers is further complicated by lengthy regulatory timelines.
“The Ministry of Health (MOH) may allow fast-track application, but the challenges of registration remain. Before we can even get to register the products, there will be a period of negotiations, which may take a few months,” Lim said.
“Even if that is successful, we cannot be sure that the new sources can meet the various unique requirements imposed by our regulatory authority.”
Pharmaceutical suppliers called for the ability to review contracts with the government if global trade disruptions lead to large fluctuations in procurement costs.
“MAPS hopes to have some flexibility from the MOH in regard to contract prices, should there be any wild swings to the procurement prices,” Lim said.
The MOH previously announced a similar measure last August – albeit in its favour – for the right to renegotiate prices in its procurement contracts with pharmaceutical manufacturers and suppliers, if cheaper alternative suppliers can be found.
While the policy decision by the ministry, which is also the country’s biggest health care provider, was made during “normal” times, Malaysian pharmaceutical importers’ request for the right to renegotiate government contracts comes amid fears of a global recession and the biggest change to global trade in a century since the 1930s.
MAPS’s comments follow rising concern from across Malaysia’s health care sector about the indirect consequences of US tariff actions. While pharmaceuticals are currently exempt, sector-specific investigations remain active under the Trump administration’s trade policy.
