PETALING JAYA: US President Donald Trump has threatened to impose a 200% tariff on pharmaceutical imports into the United States, and while global pharma giants are awaiting further developments, stakeholders anticipate a minimal impact on Malaysia at this juncture.
While Malaysia is facing 25% tariffs on various exports to the US, the impact from this industry remains uncertain, leaving the government, particularly the Health Ministry, sourcing for alternatives to mitigate the supply chain.
According to research from Pharmaceutical Research and Manufacturers of America (PhRMA), it is estimated that a tariff of 25% on pharmaceutical imports would drive up US drug prices by almost RM217bil (US$51bil) annually, increasing domestic prices by as much as 12.9% if passed on.
The group called out Trump’s proposal as counterproductive to health outcomes.
With this scenario looming, Malaysian Pharmacists Society (MPS) president Prof Amrahi Buang stressed on the urgent need for the government to take proactive measures by initiating direct negotiations with pharmaceutical companies to reduce prices.
“This issue pertains to medicine security, and it is certain that geopolitics will influence trade and the availability of patented drugs from the US for our patients.
“However, government procurement has a specific method to handle this under Treasury Instructions.
“Under Prime Minister Datuk Seri Anwar Ibrahim, Malaysia has established numerous connections with non-US markets in the region, including Asean, China, Japan, Europe, and BRICS.
“Since we import 60% of our medicines, various efforts have been made to increase local production. If we can cut wastage with better medicine adherence, this is applaudable too,” he said.
“The Treasury Instructions are financial regulations and accounting procedures issued by the Treasury Department to manage government finances, which are binding on all accounting officers of the Federation and the states.
“It covers various aspects of financial management, including budget, revenue, expenses, earnings and public assets,” added Amrahi.
Pharmaniaga Berhad managing director Zulkifli Jafar said the local pharmaceutical giant does not engage in direct exports with the United States; thus, it does not anticipate any immediate impact on its operations.
“Nevertheless, we recognise that global trade is deeply interconnected, where developments in one region can have cascading effects on supply chains worldwide.
“We will closely monitor the situation and maintain active engagement with our local and international suppliers to assess potential risks and align on appropriate contingency plans.
“This proactive approach ensures we are prepared to respond swiftly, should the need arise. Our priority remains clear: to always ensure uninterrupted delivery of our products and services to customers,” he added.
Association of Private Hospitals Malaysia (APHM) President Datuk Dr Kuljit Singh said Trump’s proposed 200% tariff on foreign-made medicines may have indirect effects on the healthcare sector, due to the deeply interconnected nature of global pharmaceutical supply chains.
“We expect the immediate shock to Malaysia to be minimal, as, unlike the US, Malaysia has a healthy generics and Active Pharmaceutical Ingredients (API) ecosystem, and we tend to rely on well-established, essential medicines rather than newer, high-cost therapies targeted to Western markets.
“Furthermore, the global supply chain is already segmented geographically due to pricing and market strategies, and Malaysia’s role in that system is unlikely to be seriously disrupted,” he said.
However, Dr Kuljit said if tariffs lead to increased pressure on major exporters like India, China, and the European Union to prioritise US-bound shipments in the next 18-month grace period, it could lead to price increases or delays for essential medicines in secondary markets like Malaysia for categories such as antibiotics, chronic disease medications, and certain vaccines.
“These impacts would only materialise if the policy was fully implemented and sustained over time. To date, many of Trump’s tariff threats across sectors like steel, autos and now pharmaceuticals have generated short-term international concern, but often with limited long-term follow-through,” he said.
“For long-term resilience, it would be helpful for Malaysia to look into diversifying suppliers and investing in local pharmaceutical production.
“We should monitor the situation but not panic, as although the proposed tariff may rattle global markets, Malaysia is relatively well-positioned to manage the impact,” he added.
Malaysian Community Pharmacy Guild (MCPG) president Sarah Abdullah said the tariffs may not have significant impacts on medicine prices, adding that the escalation of wars and geopolitical conflict would be a reason to be more concerned about, as that would disrupt the supply chain.
As for generic medicines, she said local manufacturers will not be impacted in sourcing raw materials.
“Possibly, there might be higher demand. It depends; if the branded companies increase their prices, then maybe patients will opt to go for generic medicine, which is okay because they are of good quality and also abide by Good Manufacturing Practices standards,” she said.
