THE global post-pandemic market was among the reasons for the higher cost of medicines, with some seeing up to a 300% increase in price, says Health Minister Datuk Seri Dr Dzulkefly Ahmad.
He said the ministry’s need for additional expenditure was due to this price increase.
Among the medicines affected are vaccines for Hepatitis B (a 200% price increase), treatment drugs for tuberculosis (300%), oral rehydration salts (140%), and steroid inhalers (50%).
“It (the price hike) was more obvious following the transition from the (Covid-19) pandemic,” he said when wrapping up the debate on the Supplementary Supply Bill (2023) 2024 to provide additional expenditure for his ministry, in the Dewan Rakyat yesterday.
The Bill provides an allocation for withdrawal not exceeding RM23,479,669,350 from the Consolidated Fund for additional expenditure for services.
The Health Ministry was allocated a total of RM687,892,500.
Dzulkefly said the removal of certain products from the Approved Product Purchase List (APPL) also contributed to the higher price of medicines.
“Pharmaceutical products were removed from the list due to the termination of privatisation contracts for drug labs and stores by Pharmaniaga in 2023.
“When the Pharmaniaga concession lapsed in June last year, it caused some medicines to experience higher prices, by up to fivefold,” he said.
Due to the lapse, the ministry had to procure medicine supplies through direct tenders and central purchases until last July when the government awarded Pharmaniaga a new seven-year concession.
Dzulkefly said the additional expenditure allocated was also meant for health facilities and the employment of healthcare workers, among others.
He said while RM3.301bil was allocated for medical facilities, this expenditure, however, reached RM3.85bil.
Recalibration of salaries under the new minimum wage order also caused the ministry to spend an extra RM100mil for security services contracts, he added.
