Easing Malaysia S Ncd Economic Burden The Case For Generics And Biosimilars

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RECENTLY, I read about how rising insurance premiums, out-of-pocket expense and long waiting times are now pushing even middle and high-income households in Malaysia to depend on the public healthcare system which only adds pressure to a sector that is already very stretched.
This insight is consistent with the feedback we receive first hand from healthcare professionals, our own teams on the ground and even a rising topic with friends during social occasions.
To me, the message is clear: Malaysia is facing a healthcare affordability crisis and has been for some time coming.
At the centre of this strain is the growing burden of non-communicable diseases (NCD) such as diabetes, heart disease and cancer. These conditions that not only claim lives but also carry enormous financial cost for households, businesses and the nation’s economy.
The numbers are sobering. In 2021 alone, NCDs cost Malaysia an estimated RM64.2 bil – equivalent to 4.2% of GDP (gross domestic product) – RM12.4 bil in direct public healthcare costs and RM51.8 bil in productivity losses.
For families, especially those in the B40, these diseases often mean catastrophic health payments, increasing their risk of falling deeper into poverty.
Making healthcare ringgit work harder
Carlos PatarranaBut more than the economic burden, the patient impact is equally significant. Diabetes affects about 16% of Malaysian adults, hypertension is present in 29%, high cholesterol (33%) and obesity (22%).
Alarmingly, an estimated 2.3 million Malaysians are living with three conditions at the same time.
Together, cardiovascular diseases, cancer, diabetes and chronic respiratory illnesses account for nearly three quarters of premature deaths in the country. Let’s take a moment to process these numbers.
Malaysia’s NCD crisis is as much about sustainability as it is about health. The question is: how do we make every healthcare ringgit work harder so patients get the care they need without overwhelming households or the system itself?
One part of the solution lies in making better use of generics and biosimilars which affordable, proven medicines that deliver the same outcomes as originators but at a fraction of the cost.
Generics and biosimilars represent about 80% of medicines used worldwide by volume at under a third of total cost. If used more widely and systematically, they could become one of Malaysia’s strongest levers in easing the NCD burden.
Generics and biosimilars reduce treatment expenditure without compromising quality. They stretch every healthcare ringgit further, turning cost pressure into system resilience by freeing up resources for prevention, workforce training and hospital infrastructure.
The economics are simple. Globally, the introduction of biosimilars consistently drives down the cost of biologics, creating opportunities for wider access.
In the UK, savings from just ten biosimilar and generic medicines were enough to fully fund initiatives like the UK Cancer Drugs Fund.
Malaysia is already seeing a similar benefit: the entry of biosimilars for treatments such as insulin and trastuzumab has led to meaningful price reductions and improved access, while a review by the National Heart Institute estimated potential savings of nearly RM130 mil if adoption were scaled up.
These savings are not abstract numbers. They represent the possibility of funding nationwide screening programmes, more specialist training or upgrading hospitals to better serve rural Malaysians.
Towards equitable access and financial sustainability

Malaysia’s healthcare transformation agenda, from the Health White Paper to the 13th Malaysia Plan, recognises the urgent need for equitable access and financial sustainability to go hand in hand.
Generics and biosimilars are a natural policy lever to achieve these goals, ensuring universal coverage without overwhelming public hospitals.
By aligning procurement and treatment guidelines more closely with these affordable options, while building on recent progress like NPRA’s new screening package to accelerate regulatory pathways, Malaysia can unlock both fiscal and social dividends.
But no single stakeholder can do this alone. The task ahead requires collaboration across the health ecosystem.
Policymakers, regulators, insurers, providers and patient groups must work together to create an environment that supports the adoption of generics and biosimilars.
This is no longer a matter of choice but of necessity. Malaysia cannot afford to treat NCDs lightly. Generics and biosimilars must become the cornerstone of our national response.
Having spent years looking at healthcare through an economic lens, I sincerely believe this is one of the smartest investments Malaysia can make.
Ultimately, generics and biosimilars are not just medicines, they are economic multipliers that make every healthcare ringgit stretch farther and reach more patients.
This is how Malaysia can safeguard both the health of its people and the sustainability of its healthcare system for the long term. 
Carlos Patarrana is Sandoz Malaysia-Singapore-Brunei country head.
The views expressed are solely of the author and do not necessarily reflect those of  MMKtT.
- Focus Malaysia.

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