Pharmaceutical exports recorded a nine per cent growth, surpassing the targeted five per cent growth
for 2014
The total value of Malaysian pharmaceutical exports amounted to RM611 million against RM561
million for the year 2013.
This growth was punctuated by additional efforts from the Government and the Malaysian Organisation
of Pharmaceutical Industries (MOPI) to help home-grown pharmaceutical manufacturers penetrate overseas markets.
Over the year, the Government collaborated with MOPI to conduct a major study on trade and nontrade
barriers. Among the five most important and new markets identified were Thailand, Vietnam, Turkey,
Kazakhstan and Australia markets.
The Government had finalised the procedures on Off Take Agreements (OTA) for both Pharmaceutical
and Medical Device products that will encourage production and consumption of Made-in Malaysia health products. The OTA purchase agreements are expected to encourage MNCs and other
manufacturers to base their manufacturing here as they will be given 3year agreements (plus another
two years if they meet export criteria) as opposed to a two-year contract to supply the Government
The year also saw positive developments in the transfer of MNCs’ manufacturing operations to
Malaysia. This was achieved by partnering foreign companies with local players. To date, 11 projects
have been accorded EPP status under EPP 3. These are Hovid Bhd, Bicon Ltd, CCM, Kotra Pharma,
AJ Biologics, Impian Eksekutif Sdn Bhd, Servier, Ranbaxy, AFT Pharmaceuticals and Biocare.
Additionally, AFT Pharmaceuticals, a privately owned company with operations in Australia and New
Zealand, has agreed to partner a local manufacturer to produce orphan drugs here. This will boost the
image of local pharmaceutical manufacturers.
In a bid to expand its export markets, the Malaysian Government and MOPI commissioned a Trade
Barrier Study in five target countries: Thailand, Vietnam, Turkey, Australia and Kazakhstan.
The objective of the study was to evaluate and prioritise the five most attractive countries for local
pharmaceutical companies to export their products to, and enable MOPI to build an extensive
pharmaceutical market and achieve regulatory insight into the targeted countries.
It also provides entry strategies with all the critical elements for the local companies for geographic
expansion, providing Malaysian companies with the information to grow their capacities and meet the
entry requirements.
Among the lessons learnt in boosting pharmaceutical sales and manufacturing is the time taken to
register a product. With improved coordination efforts, the registration period was cut from 18 months
to 60 working days for all EPP companies.
More needs to be done to ensure development of new molecules and penetration to new markets.
Strong support from the various Government agencies is one of the keys for the success of this EPP.
/PEMANDU Annual Report 2014
Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.
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