Policy & Advocacy
Growth of the Local Pharmaceutical Manufacturing Industry
Pharmaceutical Manufacturing as a
Pillar of Malaysia’s Healthcare
Malaysia’s local pharmaceutical manufacturing industry plays a central role in supporting the country’s healthcare system and medicine supply. The industry is focused on the production of medicines for domestic use while building capability to support regional and international markets.
The local pharmaceutical manufacturing industry is recognised under Malaysia’s national industrial and investment strategies, including the New Industrial Master Plan 2030 (NIMP 2030) and the National Investment Aspirations (NIA), reflecting its role in strengthening domestic capabilities, supporting supply resilience, and contributing to higher-value economic activity.
Local Manufacturers’ Contribution to Medicine Supply and Patient Access
2023 – 2024 Snapshot
1 out of 2
Malaysians consumed medicines produced by local manufacturers.
Over 80%
of generic and biosimilar medicines consumed in the country were locally produced by volume.
Almost half
of items listed under the National Essential Medicines List (NEML) were produced locally.
These figures underscore the importance of local manufacturing in ensuring continuity of supply, improving affordability, and reducing reliance on imports for essential medicines across both the public and private healthcare sectors.
Value & Volume Dynamics, and the Generics Price Advantage
RM13.1 billion
Malaysia’s pharmaceutical market value in 2024, growing 10.9% from 2023.
420 million units
Total market volume in 2024, remaining broadly stable with a slight decrease of 0.94% from 2023.
Lowest value per unit
Generics recorded the lowest value per unit within the prescription medicines segment.
Together, these figures show that market value increased while medicine volume remained broadly stable. Within prescription medicines, generics continue to play an important role in supporting affordability, broad patient access, and sustainable healthcare expenditure.
Investment, Regulatory Compliance and Workforce Capability
2024 Snapshot
RM726 million
Invested by local manufacturers in R&D, capacity expansion, facility upgrades, and regulatory readiness.
PIC/S-compliant
Local manufacturers comply with PIC/S standards, with some facilities operating in accordance with internationally recognised regulatory requirements such as EMA, TGA and USFDA.
17,000+ employees
The industry employs 17,091 people, with 50% comprising graduates, reflecting increasing technical and professional requirements.
Continued investment, strengthened manufacturing capability and skilled workforce development support Malaysia’s pharmaceutical manufacturing sector in meeting higher standards and improving international competitiveness.
Moving Up the Value Chain into Higher-Value Manufacturing
Vaccines
Strengthens readiness for public-health needs.
Biosimilars
Improves access to biologic treatment alternatives.
Oncology Products
Expands capability in specialised cancer care.
Local manufacturers are diversifying beyond conventional dosage forms, strengthening domestic manufacturing depth and supporting Malaysia’s move into higher-value pharmaceutical segments.
Strengthening Industry Coordination through the Pharmaceutical Productivity Nexus (PPN)
Public-Private Platform
Co-led by the Malaysia Productivity Corporation (MPC) and MOPI to strengthen coordination across the pharmaceutical manufacturing industry
Streamlining Processes
Addressing operational bottlenecks, including regulatory and approval-related matters affecting manufacturers.
Improving Productivity
Supporting efficiency, reducing duplication, and creating a more conducive operating environment for local manufacturers.
Through PPN, the industry continues to work with public sector stakeholders to support a more collaborative and enabling ecosystem for local pharmaceutical manufacturing.
ESG Practices Supporting Sustainable Industry Growth
Environmental
Members adopt practices such as wastewater treatment, hazardous waste management, recycling, energy efficiency, digitalisation, and renewable energy.
Social
Members invest in training, upskilling, occupational health and safety, internships, graduate development, and education partnerships.
Governance
Members strengthen governance through supplier audits, compliance monitoring, anti-bribery policies, whistleblowing, cybersecurity, and risk management.
These practices support long-term industry sustainability, workforce development, and public confidence.
Related Resources
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