Kuala lumpur: 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.
According to BERNAMA News Agency, the Fitch Solutions research unit reported that Malaysia aims to increase the share of domestically-produced medical products under NIMP 2030. This initiative will create a more supportive policy backdrop for the local manufacturing of essential medicines, including generic medicines. The Ministry of Health's (MOH) offtake policy will favor suppliers investing in local production, enabling the government to renegotiate prices and prioritize lower-cost generic medicines.
BMI highlighted that these measures will accelerate the shift in public procurement towards locally produced, cost-effective generic medicines. In January 2026, the MOH announced that prioritizing the use of generic medicines had saved the government over RM900 million in the past two years across both public and private healthcare sectors. A 'generic first' approach is at the core of this effort, making generic versions the preferred prescribing option when available.
The 13th Malaysia Plan (2026-2030) and the Health White Paper also emphasize healthcare access, reinforcing the role of generic medicines as the default option for essential therapies. Beyond reducing drug expenditure, the policy aims to reshape clinicians' prescribing habits and strengthen public confidence in generic medicines.
Under Budget 2026, total expenditure for public healthcare was set at RM419 billion, marking the first overall contraction since 2020. However, the MOH still received RM46.5 billion, up from RM45.3 billion in 2025. With supply security and cost containment as budget priorities, public-sector procurement is expected to further shift 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. This enables other manufacturers to produce and market equivalent therapies at a lower cost. While these measures will expand the generic medicine segment, they will also increase competitive pressure on innovative drugmakers seeking expansion in Malaysia.