CCC supports medicine price transparency but urges regulatory caution
KUALA LUMPUR: The Consumer Choice Centre (CCC) Malaysia has voiced its support for the government's move to mandate the display of service and medication prices at private health clinics and community pharmacies, highlighting it as a step toward greater transparency, consumer protection, and informed decision-making.
CCC representative Tarmizi Anuwar said the requirement would empower consumers to compare prices easily, fostering competition among healthcare providers and encouraging fairer pricing without compromising service quality.
"When prices are displayed openly, consumers are no longer left in uncertainty. They can make better-informed decisions and avoid hidden charges," he said.
Beginning May 1, 2025, all private healthcare facilities and community pharmacies in Malaysia will be required to display the prices of all medicines clearly—either through visible price tags on shelves for publicly accessible products or via a comprehensive price list for items stored behind the counter.
In a joint statement, the Ministry of Health and the Ministry of Domestic Trade and Cost of Living said the regulation applies to all private healthcare providers governed under the Private Healthcare Facilities and Services Act 1998 (Act 586) that sell, supply, or administer medicines, as well as to all community pharmacies.
The mandatory price labelling covers all medicines for human use, including prescription and non-prescription drugs, over-the-counter medications, traditional remedies, health supplements, and extemporaneously prepared products.
This requirement will be enforced through the Price Control and Anti-Profiteering (Medicine Price Labelling) Order 2025, introduced under the Price Control and Anti-Profiteering Act 2011 (Act 723). Failure to comply could lead to fines of up to RM50,000 for individuals and RM100,000 for companies.
While endorsing the move for transparency, Tarmizi raised concerns over the use of Act 723 as the governing legislation.
He warned that applying this act—intended for essential goods—to the healthcare sector could lead to unintended consequences such as medicine shortages, reduced innovation, and declining service quality due to price pressures.
Tarmizi recommended that the regulation be reviewed under the more relevant Act 586, which is better suited to address issues concerning private healthcare providers.
"Controlling medicine prices through a price control order will stifle innovation and investment in the private healthcare sector and cause widespread shortages. In the long run, it is the consumers who will suffer — not through cheaper prices, but through deteriorating service quality," he explained.
On the topic of consultation fees, Tarmizi emphasised that these fees should not be fixed by the government, whether as a minimum or maximum rate.
Instead, he believes pricing should be determined by market forces, considering factors like service quality, doctor expertise, and location.
Tarmizi said this market-based approach would encourage greater competition in the private sector, providing consumers with more choices and helping alleviate pressure on the public healthcare system by offering more service options and reducing waiting times.
"CCC supports a market-based public health approach that emphasises transparency, consumer choice, and healthy competition. Price transparency is essential, but it must be implemented within the appropriate legal framework to avoid compromising access, quality, and investment in the private healthcare sector."
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