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THE geopolitical tensions in the Middle East have understandably prompted national discussions regarding the resilience of our essential supply chains. During such periods of global volatility, ensuring the uninterrupted supply of critical medicines is a matter of paramount national interest.

First, the public can be assured that the current supply of pharmaceutical products from local manufacturers is stable, and the industry is proactively building up resilience against any major or unforeseen disruptions.

When observing the mechanics of our healthcare supply chain, it is helpful to understand how the local pharmaceutical manufacturing industry functions as a reliable supplier.

For instance, maintaining an inventory of two months for finished products and three months of raw materials is the standard and healthy operating baseline for local manufacturers.

Rather than a finite limit, this baseline is a rolling buffer designed to keep our healthcare system running smoothly under normal conditions.

However, resilience is not about maintaining the status quo during a crisis. Because the Middle East conflict has extended beyond a month and carries the potential for further escalation, the Malaysian pharmaceutical manufacturing sector is proactively shifting gears.

Members of the Malaysian Organisation of Pharmaceutical Industries (Mopi), which represents the local pharmaceutical manufacturing industry, are acutely aware of the evolving situation and are actively stepping up to enact their respective business continuity plans.

Manufacturers are exploring and executing forward-purchasing agreements to increase stock levels of raw materials and crucial packaging materials well beyond their standard operating averages, ensuring our domestic supply remains insulated from global shipping delays or sudden shortages.

This proactive industry stance aligns seamlessly with the government’s foresight. During a recent National Economic Action Council meeting, Prime Minister Datuk Seri Anwar Ibrahim highlighted the government’s commitment to securing a strategic national stockpile of medicines.

In direct response to this mandate, local manufacturers are gearing up their manufacturing capacities and increasing the production of finished products to support the government’s strategic stockpiling efforts.

However, undertaking such extensive forward-buying and maintaining these elevated inventory levels incurs substantial costs. To sustain this resilience, supportive government measures are essential to help the industry manage the significant financial and cash-flow strains associated with this critical stockpiling exercise.

This level of coordinated response highlights a much larger, overarching truth. Just as the Covid-19 pandemic taught us a harsh lesson about the fragility of global supply chains, the current geopolitical turbulence proves that continuous focus and prioritisation must be given to long-term structural frameworks.

Moving forward, initiatives such as the Health Ministry’s MyMedSecure must be continuously prioritised to ensure a robust, data-driven approach to managing our national drug stockpiles and safeguarding our supply chains.

When global supply chains are threatened, a nation cannot rely solely on the importation of finished goods. By continuing to foster a robust local pharmaceutical ecosystem, supporting data-driven frameworks like MyMedSecure, and industry working hand in hand with the government to build strategic stockpiles, we can minimise the impact on Malaysia’s healthcare system regardless of the crises occurring abroad.

Sharvin A. Subramaniam

Malaysian Organisation of Pharmaceutical Industries, Petaling Jaya

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my