Media statement by Lim Guan Eng in Kuala Lumpur on Wednesday, 18^th July 2012: 

Liow Tiong Lai should help companies like B Braun that manufacture 100% of their products in Malaysia 

Minister of Health Datuk Seri Liow Tiong Lai Should Help Companies Like B Braun That Manufacture 100% Of Their Medical Devices And Pharmeceutical Products In Malaysia To Sell Their Made In Malaysia Products To Public Health Sectors And Hospitals Without Needing To Go through Middle Men. Liow has chosen to confuse the public instead of clarifying about pharmaceutical companies not being able to sell their products directly to the public sector and hospitals during my second debate with MCA President Datuk Seri Chua Soi Lek on 8 July 2012.

However, despite Liow's assurance that it does not employ the middle-men concept, the pharmaceutical manufacturers cannot sell directly to the Health Ministry even if they manufacture locally in Malaysia. Is this another of Liow's empty promises when it is middle men that controls the purchase and supply of medicine to hospitals resulting in higher prices and extra cost to the rakyat?

Datuk Seri Liow mentioned that pharmaceutical manufacturers need to apply through the Ministry of Finance before they can sell direct without going through the middle person and that the products must be manufactured in Malaysia. This is simply not true and Liow is engaging in deception and deceit.

His statement does not allay the fears of many pharmaceutical manufacturers and it remains unclear as to how these manufacturers will be able to compete transparently for the public hospitals purchases. B.Braun is a clear example of a medical devices and pharmaceutical manufacturer operating in Malaysia that cannot sell directly to public hospitals. B.Braun has tried to sell direct public hospitals but have been informed that they have to rely on middle-men.

B.Braun has invested almost RM1 billion since it started in 1972 and has provided 4700 jobs in Penang and has recently expanded further its RM300 million facility to cater for further expansion of business in Malaysia. B Braun offers employment to many Malaysians. According to the Star dated 10th January 2009, B.Braun's former board chairman Prof. Dr. L.G. Braun voiced his concerns that the Federal Government must reform its "outdated" policy prohibiting the sale of pharmaceutical and medical products by multinational corporations in Malaysia.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. B.Braun has been a faithful employer and partner of the state so that they will continue to feel welcome in Malaysia. Without a transparent policy, companies such as B.Braun will continue to face uphill challenges which could eventually discourage them from further investing in this country.

I urge other affected pharmaceutical companies to continue to voice their concerns of such unethical crony practices to the Ministry of Health to cut costs. 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 as affordable pharmaceutical products and medical devices.

*Lim Guan Eng, DAP Secretary General & MP for Bagan