PETALING JAYA: Refuting claims that the government spent more on brand-name drugs than generics, the Health Ministry clarified that generic medicines accounted for nearly 78% of its total drug procurement spending in 2025.
In a statement Tuesday (July 14), the ministry said that of the RM3.86bil spent on medicines last year, RM3.01bil or 77.88% was used to procure generic medicines while RM850mil or 22.12% was spent on brand name or innovator drugs.
Responding to recent media reports that cited an analysis shared by Pharmaniaga Bhd which appeared to suggest that expenditure on innovator medicines exceeded that of generic drugs in 2025, the ministry sadi there were differences between the findings reported and its official records likely due to variations in data sources and the scope of procurement used in the analysis.
It said that the RM3.495bil figure reported by Pharmaniaga was generally based on two sources namely data from IQVIA, a commercial pharmaceutical market database and Pharmaniaga's own internal analysis.
According to MoH, its RM3.86bil expenditure covered all three government procurement methods namely purchases made through the medical supplies logistics services concession, central contracts and direct procurement by healthcare facilities nationwide.
The ministry said generic medicines remained the backbone of public healthcare drug procurement and accounted for 3,170 of the 3,982 types of medicines purchased in 2025.
It added that spending on generic medicines had risen steadily over the years from 54.22% of total drug procurement expenditure in 2021 to 77.88% in 2025 in line with the National Medicines Policy which prioritises the use of generics.
The ministry also reiterated its commitment to supporting the local pharmaceutical industry as part of efforts to strengthen the country's medicine supply security.
It said procurement of locally manufactured generic medicines increased from RM1.14bil in 2023, representing 44.21% of generic drug spending, to RM1.49bil in 2025, or 49.57%.
The ministry urged all parties to verify the accuracy of data, information sources and the scope of analyses before making public statements or drawing conclusions on medicine procurement matters.
It said the ministry would continue to prioritise the procurement of quality, safe and effective medicines while ensuring prudent and sustainable use of public funds.
