KUALA LUMPUR, March 26 — The government will intensify support for domestic drug production to contain costs under the New Industrial Master Plan (NIMP 2030), according to research firm BMI.
The Fitch Solutions research unit said Malaysia aims to increase the share of domestically produced medical products under NIMP 2030, creating a more supportive policy backdrop for the local manufacturing of essential medicines, including generics.
“The Health Ministry's (MOH) offtake policy to procure pharmaceutical products and critical medical devices will favour suppliers that invest in local production, while also strengthening the government’s ability to renegotiate prices and prioritise lower-cost generic medicines where appropriate.
“Together, these measures will accelerate the shift in public procurement toward locally produced, cost-effective generic medicines,” it said in a statement today.
Meanwhile, in January, the MOH announced that the government had saved more than RM900 million over the past two years by prioritising the use of generic medicines across both public and private healthcare.
Central to this effort is a ‘generic first’ approach, under which a generic version, when available, is treated as the preferred prescribing option.
This was also highlighted by the 13th Malaysia Plan (2026-2030) and the Health White Paper, which prioritise healthcare access and reinforce the role of generic medicines as the default option for broad-based access to essential therapies.
BMI noted that, in addition to reducing drug expenditure, the policy is designed to reshape clinicians’ prescribing habits and strengthen public confidence in generic medicines.
Under Budget 2026, the total expenditure for public healthcare was set at RM419 billion, the first overall contraction since 2020. MOH still received RM46.5 billion, up from RM45.3 billion in 2025.
With supply security and cost containment highlighted as budget priorities, public-sector procurement is likely to shift further towards lower-cost generic medicines and biosimilars.
“Malaysia’s National Generic Medicines Framework defines a generic medicine as a product intended to be interchangeable with the originator once patent or other exclusivity rights expire, enabling other manufacturers to produce and market equivalent therapies at lower cost.
“Together, these measures will accelerate the expansion of the generic medicine segment. However, the government-driven shift towards more affordable treatment options will increase competitive pressure on innovative drugmakers looking to expand in Malaysia,” it said.
