KUALA LUMPUR, April 2 \u2014 The Ministry of Health (MOH) is tightening medicine dispensing in public hospitals as global cost pressures rise, even as officials say there is no immediate disruption to drug supply.<\/p>\n
The move follows a warning from pharmaceutical supplier Jardin Marketing & Distribution Sdn Bhd<\/a> of tightening supply and possible price increases, with hospitals advised to place orders early because stocks will be subject to a first-come, first-served basis.<\/p>\n The warning comes as global supply chains face renewed pressure from oil and gas shocks<\/a> linked to the Iran conflict, now entering its second month with no clear resolution.<\/p>\n In a statement to CodeBlue on Tuesday, MOH\u2019s Pharmaceutical Services Programme (PSP) said it is \u201cstrengthening ongoing supply management practices to ensure continued and equitable access to medicines.\u201d\u00a0<\/p>\n These include \u201coptimising dispensing practices based on clinical needs\u201d and \u201creviewing patients\u2019 existing medication supply to avoid duplication.\u201d<\/p>\n PSP said it has not received formal notifications from suppliers on price increases or supply disruptions.<\/p>\n \u201cAt this stage, the MOH, through the Pharmaceutical Services Programme, has not received any official notifications from suppliers regarding price increases or supply disruptions,\u201d it said, adding that \u201cthe current supply of contracted medicines remains stable with adequate stock coverage.\u201d<\/p>\n Across Asia, tighter energy supplies and higher fuel costs<\/a> are already disrupting logistics and driving up transport costs, developments that are expected to feed into pharmaceutical supply chains if sustained.<\/p>\n The ministry\u2019s engagements with industry stakeholders point to mounting cost pressures.<\/p>\n \u201cBased on recent engagements with industry stakeholders, the current supply of contracted medicines remains stable with adequate stock coverage. However, the industry has indicated that ongoing global cost pressures may pose challenges if prolonged,\u201d PSP said.<\/p>\n Risks are most pronounced for medicines heavily dependent on imported inputs, including active pharmaceutical ingredients (APIs), petrochemical-based materials, and global logistics.<\/p>\n \u201cMOH is aware of potential risks affecting selected products, particularly those with high dependency on imported APIs, raw materials and petrochemical-based packaging components, as well as global logistics,\u201d PSP said.<\/p>\n Malaysia has not seen major disruptions to its medicine supply so far. The Health Ministry said the country holds up to five months of stock<\/a>, including buffer supplies, with the immediate impact of the conflict remaining limited. Private hospitals<\/a> have also reported stable supplies.<\/p>\n However, rising fuel costs, logistical bottlenecks and reliance on global manufacturing hubs \u2013 particularly India, which supplies over 30 per cent of Malaysia\u2019s imported medicines<\/a> \u2013 are expected to push prices higher and could strain availability if geopolitical tensions persist.<\/p>\n Pharmaceutical manufacturers in India<\/a> have already reported sharp increases in the prices of petrochemical-based APIs, with some seeing steep price spikes \u2013 including the APIs for metformin (up nearly 90 per cent) and paracetamol (around 50 per cent) \u2013 alongside rising costs of key manufacturing materials, including solvents and intermediate compounds.<\/p>\n Yet, MOH officials maintain there is no immediate disruption to supply.<\/p>\n \u201cBased on current assessments, no immediate disruption to medicine supply is anticipated,\u201d PSP said, adding that \u201cthe situation continues to be closely monitored to ensure timely and appropriate mitigation measures, where necessary.\u201d<\/p>\n CodeBlue reported on Tuesday that Jardin, in a letter to Teraju Farma Sdn Bhd, warned that higher crude oil prices linked to the West Asia conflict are expected to push up the cost of raw materials, packaging, logistics, and insurance.<\/p>\n The company said raw material costs could rise by as much as 50 per cent under current conditions, with further increases possible if the situation persists, and that it could invoke force majeure if disruptions worsen.<\/p>\n Taken together, the MOH\u2019s measures signal tighter control over medicine use at the facility level, even without formal rationing. \u201cThis includes maintaining adequate stock levels across health care facilities,\u201d it said.<\/p>\n The MOH also said it may revise spending if cost pressures escalate. Public sector spending on medicines<\/a> has risen steadily in recent years, reaching about RM3 billion in 2023 and accounting for roughly 11 to 13 per cent<\/a> of the MOH\u2019s budget.<\/p>\n \u201cMOH is prepared to review and adjust its pharmaceutical budget and procurement strategies if significant cost increases arise,\u201d it said, adding that it \u201cremains committed to ensuring uninterrupted access to safe, effective, and quality medicines for the public.\u201d<\/p>\n Hospitals are also being told to tighten inventory controls, including maintaining stock levels of up to three months and improving procurement planning.<\/p>\n \u201cMOH is strengthening inventory management practices across health care facilities,\u201d it said, including \u201cmaintaining adequate stock levels in line with existing guidelines (up to three months), optimising procurement planning and ordering practices, and enhancing preparedness to manage potential supply uncertainties.\u201d<\/p>\n The MOH says supply remains stable, but tighter dispensing and inventory controls suggest the system is already adjusting to rising costs, raising questions about how long current buffers can hold.<\/p>\n","protected":false},"excerpt":{"rendered":"KUALA LUMPUR, April 2 \u2014 The Ministry of Health (MOH) is tightening medicine dispensing in public hospitals as…\n","protected":false},"author":2,"featured_media":372143,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[163,85,46,482,12822,27215,178772,4872,169156],"class_list":{"0":"post-372142","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-medication","8":"tag-health","9":"tag-il","10":"tag-israel","11":"tag-medication","12":"tag-ministry-of-health","13":"tag-pharmaceutical-industry","14":"tag-pharmaceutical-services-programme-psp","15":"tag-supply-chain","16":"tag-west-asia-conflict"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/372142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=372142"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/372142\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/372143"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=372142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=372142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=372142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}