Prices of medicines in Malaysia are among the lowest in the Asean region, said an association representing drug companies, following complaints of escalating cost of medication.

English daily The Star reported that the Pharmaceutical Association of Malaysia (PhAMA) president Yew Wei Tarng said some drugs are pricier now due to higher currency exchange as a result of the weakening ringgit.

However, he insisted that prices of medicines were still cheaper in Malaysia compared with its regional neighbours.

This comes as Malaysians are bracing themselves for the Goods and Services Tax (GST) which will roll out on April 1 next year

Although health minister Datuk Seri Dr S. Subramaniam had said 4,200 brands of essential medicine would be exempted from the broad-based consumption tax, the cost of medical care may still increase by between 1% and 2%.

However, The Star reported Malaysian Community Pharmacy Guild president Wong Sie Sing as saying that consumers would be faced with hikes of between 10% and 40% when GST comes into effect.

This was on top of the prices of some drugs, which had increased by 20% to 50% this year, with most drug companies adjusting their prices twice over the last 12 months.

Usually, the yearly hikes are from 5% to 10%, Wong added.

Malaysian Pharmaceutical Society (MPS) president Datuk Nancy Ho warned that escalating costs of imported and generic drugs may force many to stop taking their medicine.

"The rise in drug prices could be due to increased costs of raw materials, equipment, labour and transportation as well as the weak currency exchange, which impacts all sectors.

“GST will worsen the situation further as almost all newer medicines with better results and less side effects will be taxed 6%,” she was quoted as saying.

PhAMA's Yew said it was not fair to blame the industry for raising prices of its goods as some had not hiked up the prices of their products for years.

Moreover, PhAMA, which represents 44 drug companies, has no power over pricing and trade terms, which means it could not determine prices of medication.

“But a supplier who raises the quantum by high percentages will eventually be priced out of competition,” he was quoted as saying.

The Star also reported that Health Ministry director-general Datuk Dr Noor Hisham Abdullah said the ministry's pharmaceutical services division met Malaysian Community Pharmacy Guild representatives on November 26 to discuss standardising and benchmarking drug prices.

“We also looked at price negotiation and pharmacy economics to make sure that drugs are accessible,” he was quoted as saying.

Source: The Malaysian Insider