Malaysia’s medical health tourism industry could be hit if the government introduces a medicine price control mechanism for private healthcare operators, warns Pharmaceutical Association of Malaysia (PhAMA) president Chin Keat Chyuan, according to the Malaysia Reserve. He suggests any price control mechanism would force drug companies to reconsider launching innovative medicine.
Chin is quoted in the article saying “Medical health tourism is expected to reach RM1.8 billion by year-end, registering a 25% growth. The growth is largely because patients from neighbouring countries seek treatment here, due to the relatively affordable and good private healthcare. Our drugs are accessible. We have innovative medicines at affordable prices and I think the figure is a testament to that.”
According to the Malaysia Reserve, Health Minister Datuk Seri Dr Dzulkefly Ahmad announced that the ministry intends to use external reference pricing (ERP) to benchmark drug prices in Malaysia against seven to eight selected countries by choosing the average three lowest reference prices to determine the ceiling price sold to dispensing channels in Malaysia. The ministry plans to impose a ceiling price at supply, namely wholesale through ERP and retail levels.
Chin said putting controls on the prices of medicine without proper engagement, consultation and cost-benefit analysis would have far-reaching consequences.