Malaysia faces drug supply risks as 61pct of market relies on imports
KUALA LUMPUR: Malaysia faces the risk of medicine supply disruptions, with imported products accounting for 61.24 per cent of the pharmaceutical market by value in 2025, according to MBSB Research.
KUALA LUMPUR: Malaysia faces potential medicine supply disruptions due to the reliance on imports for 61.24% of its pharmaceutical market value in 2025, according to MBSB Research. The country's dependence on foreign sources for finished drugs and active pharmaceutical ingredients (APIs) is estimated at around 80%. Pharmaceutical imports surged from RM3.5 billion to RM12 billion between 2015 and 2025, with China and India supplying around 80-85% of bulk synthetic APIs.
High dependence on imports exposes Malaysia's healthcare system to risks such as logistics disruptions, geopolitical conflicts, and raw material shortages. Geopolitical tensions and shipping route congestion have driven up the price of imported medicines and APIs by up to 50%. The report emphasizes that "Access without security creates a fragile system."
Local manufacturers face risks as they continue to rely on imported APIs, even as they produce generic tablets, syrups, and injectable medicines domestically. Supply pressures are expected to intensify as Malaysia ages and faces a rise in non-communicable diseases like diabetes, hypertension, cardiovascular diseases, and neurodegenerative disorders.
To enhance medicine security, the report outlines four strategies: MyMedSecure, a six-month early warning system; a Strategic Medicine Buffer, a rolling reserve of three to six months of baseline medicine consumption; and the Malaysia National Health Security Action Plan 2025-2030. MyMedSecure mandates drug registration holders to notify the National Pharmaceutical Regulatory Agency (NPRA) six months prior to potential supply shortages or product discontinuations.
Additionally, the government increased its commitment to medicine procurement by 8.3%, from RM6 billion in 2025 to RM6.5 billion in 2026.
The pharmaceutical market is projected to expand from RM15.7 billion in 2025 to over RM21.4 billion by 2030, driven by generic medicines and biosimilars, which are expected to grow by 12-14% annually. However, maintaining medicine reserves for months would require substantial working capital, cold-chain facilities, and strict inventory management.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
