KUALA LUMPUR, July 15 — The Ministry of Health (MOH) has refuted a claim by Pharmaniaga Berhad, its drug concessionnaire, that government spending on branded medicines exceeded generics last year.
The ministry attributed the difference between Pharmaniaga’s analysis and the MOH’s official records to potentially differing data sources and procurement scope.
According to the MOH, Pharmaniaga’s report of the government’s 2025 pharmaceutical spend amounting to some RM3.5 billion generally referred to two data sources: commercial database IQVIA and the company’s internal analysis.
However, the MOH clarified that it had actually spent RM3.86 billion on medicines in 2025 based on its procurement records, namely through the MOH’s medical supply logistics services concession, central contracts, and direct purchases by MOH health care facilities nationwide.
“Generic medicines constitute the main component of MOH’s drug expenditure, with a procurement value of RM3.01 billion (77.88 per cent), involving 3,170 (79.61 per cent) out of the 3,982 types of medicines procured, while innovator drugs amounted to RM0.85 billion (22.12 per cent),” said the MOH in a statement today.
“The percentage value of generic drug procurement has also shown an increasing trend, rising from 54.22 per cent in 2021 to 77.88 per cent in 2025, in line with the National Medicines Policy (DUNas), which prioritises the use of generic medicines.”
The MOH also expressed support for the development of the local pharmaceutical industry, noting that the procurement value of locally manufactured generic medicines purchased by the government increased from RM1.14 billion (44.21 per cent) in 2023 to RM1.49 billion (49.57 per cent) in 2025.
“To avoid any confusion regarding drug procurement in MOH, all parties are reminded to verify and ensure the accuracy of data, information sources, and the scope of analysis before making any statements or conclusions to the public.”
Pharmaniaga managing director Zulkifli Jafar told a conference at Bursa Malaysia here last July 2 that the government spent 59 per cent of its RM3.5 billion pharmaceutical budget in 2025 on innovators (RM2.1 billion), exceeding the 41 per cent spent on generic versions (RM1.4 billion).
He also claimed that two-thirds of the government’s pharmaceutical spending last year went to imported drugs, be it originators or imported generics: RM1.5 billion on patented innovators, RM541 million on off-patent innovators, and RM244 million on imported generics.
Local generics only comprised RM1.2 billion in spending.
When presenting the data, Zulkifli had said that as the government’s pharmaceutical concessionnaire, “every single purchase made by the government goes through our system”.
