Generic medicines policy delivers RM900 million savings as Malaysia pushes cost-effective healthcare

LocalHealth & Fitness
24 Jan 2026 • 4:57 PM MYT
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MALAYSIA has saved more than RM900 million over the past two years through the implementation of its Generic Medicines Policy, underscoring the government’s drive to contain healthcare costs without compromising patient safety or treatment effectiveness.

Health Minister Datuk Seri said the policy encourages the use of generic medicines across both the public and private healthcare sectors to ensure affordable access to quality treatment.

“The Prime Minister (Datuk Seri Anwar Ibrahim) often emphasises the importance of savings, and he has mentioned this since I returned to office for my second term, and action has already been taken,” Dzulkefly said after attending the opening of the new Seberang Jaya Hospital building n Penang.

“Over the past two years, we have implemented what is known as a ‘generic first policy’. When a generic medicine is available, we will place it as the primary option,” he said.

The opening ceremony was officiated by Prime Minister Anwar Ibrahim and attended by Penang Chief Minister Chow Kon Yeow and Entrepreneur and Cooperatives Development Minister Steven Sim.

Dzulkefly said the policy is supported by guidance to the clinical community, including specialists and medical practitioners, to prioritise the prescription of generic medicines.

He stressed that such medicines undergo stringent evaluations, including bioequivalence studies, to demonstrate parity with original or innovator drugs in terms of safety and efficacy.

He urged the public not to be sceptical about generic medicines, emphasising that lower prices do not mean lower standards.

“It is not because it is cheap that it is unsafe or ineffective. That is a mental or paradigm shift the public needs to understand. There is no reduction in safety or effectiveness when specialists and clinical officers prescribe generic medicines,” he said.

Addressing delays affecting Health Ministry projects, Dzulkefly said the ministry works closely with the Public Works Department (JKR) to monitor implementation, particularly for projects classified as problematic.

He said he personally chairs Development Committee meetings every two to three months to review the progress, challenges and overall status of all projects, with updates subsequently reported to the Cabinet.

“So, we are fully aware, and we work with JKR at both the federal and state levels. JKR is the implementing agency and we are the client.

“We focus on pushing for action to expedite projects, but ultimately the Ministry of Works or JKR makes the decisions, while as the client we provide recommendations and considerations for them to decide,” he said.

Dzulkefly acknowledged that several hospital projects have suffered serious delays, including in Sabah and Sarawak, citing Hospital Putrajaya and Hospital Papar as examples of developments that have taken more than a decade to complete.

He stressed that contractors must fulfil their obligations and complete projects within the stipulated timeframe, adding that excessively prolonged delays are unacceptable given their impact on public healthcare services. - January 24, 2026