Boosting Pharmaceutical Industry Productivity through establishment of Pharmaceutical Productivity Nexus (PPN)
3 May 2024, Petaling Jaya - The demand for healthcare continues to rise in Malaysia with increasing affluence and rising consumer awareness. Pharmaceutical industry is considered as the backbone for healthcare industry and requires strong foundation to sustain the adequate supply of medicine for healthcare services. Malaysia continues to be committed in providing high quality healthcare services for the country. The Total Expenditure on Health (TEH) in Malaysia has increased significantly from 3.4% of GDP in year 2011 to 5.1% of the GDP in year 2021 with per capita expenditure on health has reached RM2,401. By year 2030, the government expects the pharmaceutical sector’s gross domestic product (GDP) value to hit RM2.5 billion. According to the Malaysian Organisation of Pharmaceutical Industries (MOPI), the total value of pharmaceutical exports in 2022 reached RM 2.7 million, while imports totalled RM 10.6 million, indicates the nation's heavy reliance on imported goods. To address this imbalance, the National Industrial Masterplan 2030 (NIMP 2030) supports the transition to high-tech production, aiming to move away from low value-added processes. This shift is part of the industry's strategic direction towards advancing economic complexity.
The pharmaceutical industry has been recognised as a priority sector in the National Industrial Masterplan 2030, with a focus on promoting high-value, innovation-driven growth. To support this goal, the Pharmaceutical Productivity Nexus (PPN) has been established to facilitate both the sector and enterprises in enhancing productivity, fostering innovation, and seizing growth opportunities. The PPN's objective is to improve the overall productivity of the pharmaceutical industry by providing strategic support and facilitating collaborations among industry players. By leveraging this platform, the industry can streamline processes, adopt advanced technologies, and develop innovative products and services. This initiative is expected to enhance the competitiveness of the pharmaceutical sector and contribute to the country's overall economic growth. The PPN's initiatives are aligned with the broader objectives of the NIMP 2030, which seeks to drive sustainable development and propel Malaysia towards becoming a high-income nation with a diversified knowledge-based economy. Zahid Ismail, Director General of Malaysia Productivity Corporation (MPC) said the establishment of 3 new Nexus (Pharmaceutical, Automative and Aerospace) which are the priority sectors focused by the government to drive productivity towards economic growth at global level.
Productivity Nexus is led by Industry players with the support from the government and academia which model after the public-private partnership. The partnership was formed to provide a reliable dialogue mechanism for consultation between the government and the private sector. Mr Ch’ng Kien Peng, president of the Malaysian Organisation of Pharmaceutical Industries (MOPI) with over 20 years of experience in the manufacturing pharmaceutical industry, has been appointed as Champion of PPN. He said that industry’s involvement and government support in establishment and implementation of initiative under PPN can help to improve the whole pharmaceutical industry ecosystem.
Recently, the Nexus had an engagement session with Duopharma Biotech, a member of MOPI. The session explored potential projects for pharmaceutical industries ranging from identifying future talent opportunities, improve regulatory environment for ease of doing business and improving management and technology adoption to improve the sector’s productivity. Through continued engagement with industry players like Duopharma Biotech and collaborative efforts, MPC aims to ensure the success of the Pharmaceutical Productivity Nexus, driving positive change and contributing to the long-term sustainability and competitiveness of Malaysia's pharmaceutical sector.
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About Malaysia Productivity Corporation (MPC)
MPC is a statutory body under the Ministry of Investment, Trade and Industry (MITI). It drives national productivity holistically at the national, sectoral, and enterprise levels through three main thrusts: developing future talent, driving digitization and innovation, and building a robust ecosystem. It collaborates strategically with the private and public sectors by emphasising productivity as a key agenda to boost productivity growth and national competitiveness, ultimately leading to shared well-being and prosperity.
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