Citation

Md Amin, Wan Liza and Zulfakar, Mawaddah Munirah (2023) Pharmaceutical drugs industry in Malaysia: Sustainability and competitive market. University of Western Australia Law Review, 50 (1). pp. 348-374. ISSN 0042-0328

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Abstract

In June 2022 the Malaysian Health Ministry (MOH) announces that preventive and correction is required to addresses medicine shortages in Malaysia. To date, the industry is heavily regulated with the major players in the pharmaceutical market in Malaysia ie Novartis, GlaxoSmithKline (GSK), Pfizer, Y.S.P. Southeast Asia (Y.S.P SAH), and Kotra Pharma. Pharmaceutical industry is a highly concentrated market. The Malaysia Medical Association (MMA) called upon the authorities to address shortage of medicine supply in the local pharmaceutical industry fast. The Covid-19 experience warrants an upstream oligopolistic structure which embodies the endogenous conditions with a high barrier of regulatory, incumbent strategic behaviour and sunk cost problems. These barriers resulted into prevalent disruptions in drugs supplies in the upstream and downstream market. The disruption causes trickling effects on the consumers and other stakeholders in Malaysia market. The market is further burdened with low- to non-competition process in the upstream and downstream market. This paper examine on how the sequencing of competition can be introduced in the present pharmaceutical market structure. A competitive market structure that promotes allocative, productive and dynamic efficiency in the supply chain. The competition framework structure should address collusion, abuse of dominant position exclusive dealings practices which have the cause and effect of prices hikes, shortages, and cartel. This efficiency will translate to low barriers among incumbent and new market players, greater choices of drugs and cheaper medicine prices. Documentary examination shows, to date, a present pharmaceutical market structure divided between Levels 1, 2 and 3 that represent monopolistic and oligopolistic structural framework. To enhance competitiveness and creating a sustainable sector, deregulation and restructuring competition in the market’s segments in the pharmaceutical sector. This article adopts thematic and qualitative analysis to generate data on the transition from oligopolistic to a competitive market structure. The competition process data revealed that competition in the market would address present impediments. This study employs a qualitative method from literature analysis and distribution of online questionnaires. Comparative method examination from other jurisdictions such as the US and European Union experiences and lessons also form part of the parameters of this article. The findings in our study proposes stakeholders mutual benefits and relevant with the Malaysia National Medicine Policy 2017-2021, Healthcare White paper system and the Malaysia Digital economy blueprint 2030. This study concludes our findings with our competitive market structure framework and harmonization of competition policy tool and patents rights.

Item Type:	Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD9000-9999 Special industries and trades
Divisions:	Faculty of Law (FOL)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	05 Oct 2023 01:09
Last Modified:	05 Oct 2023 01:09
URII:	http://shdl.mmu.edu.my/id/eprint/11755

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