MGCC: Dr. Choe, does Malaysia import most of its pharmaceutical products or manufacture them in the country?

Choe: About 30% of the pharmaceuticals used in Malaysia are manufactured locally while 70% are imported. At present, even most of the raw materials used for manufacturing local pharmaceuticals is imported. The government, however, is encouraging more local production of both pharmaceuticals and raw materials.

MGCC: How good is local R&D?

Choe: I would say that there are not many strong local R&D companies here, as far as pharmaceuticals is concerned. The R&D they do here today is mostly for product extension. But if you talk about R&D in such as searching for new molecules, that is still all done in the industrial countries. What we have here is relatively basic R&D, like perhaps to come up with a new dosage form, or maybe produce the liquid form of a certain medicine instead of tablets.

MGCC: Comparing Malaysia to other Asian countries with regard to the healthcare industry, what would your comments be?

Choe: Malaysia has one of the most developed healthcare system in the world. Whilst the trade incentives are there, if we wish to see more foreign companies investing in R&D here, I think law enforcement in protecting intellectual properties and patents should be intensified. As these companies would have to invest large sums of money and long periods of time for the research of new molecules, it would be unfair to them if somebody else "copied" their products.

MGCC: How big is the problem of "fake medicine" or counterfeits in Malaysia? And how do you define them?

Choe: "Fake medicine" or counterfeits are those produced to pass off as the original. Ingredients may be replaced simply by inactive ingredients or active ingredients which may be underor over strength, which will lead to complications for patients in the long run and may lead to death. At the moment anyone caught manufacturing or selling counterfeits could be fined a maximum of RM 25,000 under the Sales of Drugs Act 1952 (revised 1989) and a maximum of RM 100,000 under the Trade Description Act 1972. The industry thinks the penalty is not heavy enough, if you compare that to what can be earned by selling counterfeits.

In the last survey done in 1997 by the Ministry of Health, only about 6% of the drugs sampled are counterfeits. This is relatively low compared to other developing countries, where counterfeits could be up to about 15-20%. Patients should always buy from authorised and recognized dealers and pharmacies.

MGCC: What are the opportunities for the German pharmaceutical industry in the Malaysian market?

Choe: German companies wishing to enter the Malaysian market for the pharmaceutical industry can appoint a distributor or an agent or set up their office here. There are certainly still opportunities on the market. New developments in the medical sector e.g. biotechnology, and new drugs are always welcome, especially when they suit niche markets