'Liow Tiong Lai deceiving public on middleman role'

DAP secretary-general Lim Guan Eng says Health Minister Liow Tiong Lai is confusing the people instead of clarifying whether pharmaceutical companies can sell their products directly to the public sector and to hospitals.

Lim, who is also Penang chief minister, said the issue was raised during his second debate with MCA president Dr Chua Soi Lek on July 8.

He said Liow should assist companies like B Braun, which manufacture 100 percent of their medical devices and pharmaceutical products in Malaysia, so that they need not go through "middlemen" to market their products.

"However, despite Liow's assurance that it does not employ the ‘middleman concept', pharmaceutical products manufacturers cannot sell directly to the Health Ministry, even if they manufacture in Malaysia," Lim said in a statement today.

"Is this another of Liow's empty promises, since middlemen control the purchase and supply of medicines to hospitals, resulting in higher prices and extra costs to the rakyat?" Lim queried.

He was responding to Liow's comment that pharmaceutical manufacturers need to apply through the Ministry of Finance before they can sell direct, without going through middlemen, and that the products must be manufactured in Malaysia.

But Lim denied this was true, and accused Liow of engaging in "deception and deceit".

B Braun complains it can't sell direct

Lim said Liow's statement did not allay the fears of many pharmaceutical products manufacturers and it remained unclear as to how they would be able to compete transparently for the purchases of public hospitals.

He said B Braun's case was a clear example of a medical devices and pharmaceutical products manufacturer operating in Malaysia that could not sell directly to public hospitals.

According to Lim, B Braun tried to sell direct to public hospitals but was informed that they had to rely on middlemen.

B Braun has invested almost RM1 billion since it started operations in Penang in 1972 and has provided 4,700 jobs. It recently expanded its RM300 million facility to cater for further expansion of business in Malaysia, Lim said.

Quoting a report in The Star of Jan 10, 2009, Lim said B Braun's former board chairman Prof Dr LG Braun called for the federal government to reform its "outdated" policy prohibiting the sale of pharmaceutical and medical products by multinational corporations in Malaysia.

"I will continue to re-echo similar concerns raised by B Braun two years ago. The company has been a faithful employer and partner of the state so that it will continue to feel welcome in Malaysia," Lim said.

"Without a transparent policy, companies such as B Braun will continue to face uphill challenges that can eventually discourage them from further investing in this country." 

Lim urged other affected pharmaceutical companies to continue to voice their concerns on such unethical, crony practices to the Ministry of Health so that costs could be cut.

Malaysia needs a more transparent and competitive healthcare environment that will safeguard the well-being of all Malaysians in terms of job creation within the industry as well, he added.