Drug price control in Malaysia: a stakeholder analysis

Abstract

Purpose

Pharmaceutical pricing has always been a contentious issue around the world. Recently, the Government of Malaysia has proposed for drug price control. This proposal has received backlash from pharmaceutical industry. Therefore in this study, the authors would like to examine the position of various stakeholders on this issue.

Design/methodology/approach

The authors used Policy Maker software to identify and evaluate the position of the stakeholders, their interest and their power. Next, the authors contextualize the factors that might contribute to the success or failure of the policy using Kingdon's multiple stream analysis.

Findings

The authors found that the drug price control regulation received mixed reactions from the stakeholders, with the public sector mainly supporting the proposal whereas the private sectors opposing it. The findings indicate that the drug price control proposal have a high chance of success due to strong political will from both the government and the opposition and also strong support from the public and the consumer groups.

Practical implications

1. The drug price control proposal received strong political will and strong public support. Thus, it has a high chance of success. 2. The government should be careful in managing concentrated powerful groups. The government should strategically engage with the stakeholders to move them to more positive attitude. 3. The government should avoid backtracking on policies as this will portray critical weakness to other stakeholders.

Social implications

The public sector provides strong support for the regulation. However, this support must be maintained and remain as their top priority. Their opinions are important in shaping health policies. The public's feedback will provide transparency and accountability in the policy-making process.

Originality/value

The findings indicate that the drug price control proposal have a high chance of success due to strong political will from both the government and the opposition and also strong support from the public and the consumer groups.

Citation

Ashraf, A. and Ong, S.C. (2021), "Drug price control in Malaysia: a stakeholder analysis", International Journal of Health Governance, Vol. 26 No. 4, pp. 333-347. https://doi.org/10.1108/IJHG-02-2021-0014