MOH warns rising API costs could push up medicine prices and private treatment costs, while squeezing local generic drugmakers and distributors. The government’s drug may also come under pressure.
GP clinics are declining into a "sunset industry", says FPMPAM, "strangled" by mounting regulatory burdens like drug price displays, while doctor fees stagnate and TPAs grow. "There are too many regulations. They are killing the practice of medicine."
MMA has expressed concern that the new medicine price transparency policy could have "serious, unintended consequences" for private GP clinics. MMA says requiring the display of all drug prices is impractical and will significantly raise operational costs.
Pharmaceutical companies will be forced to disclose their drug development costs, including for cancer therapies, under the drug price transparency mechanism, says Khairy Jamaluddin.
Pharma MNCs may deprioritise Malaysia into a “Wave 3” country, like Vietnam and South Africa, without access to innovative medicines if drug price controls are implemented.
A cost-benefit analysis estimates T20 patients with private insurance may save RM1.6 billion yearly, four times higher than RM368 million for M40 and 22 times higher than RM73 million for B40.
A cost-benefit analysis finds drug price controls may shutter 2,600 clinics and cause pay cuts, salary freezes, or layoffs of 91,000 to 136,000 private health care jobs.