CCC: Price transparency of medicine prices is necessary but “Act 723 is not the right medium”

AT one end, the government’s initiative to introduce the display of service and medication prices at private health clinics and community pharmacies significs an important step towards enhancing transparency, protecting consumer rights and increasing consumer choice.

However, the Consumer Choice Centre (CCC) Malaysia is of the view that implementing this regulation under the Price Control and Anti-Profiteering Act 2011 (Act 723) is inappropriate for this could negatively impact the quality and competitiveness of healthcare services in the long term.

“The price display regulation or the Price Control and Anti-Profiteering (Price Marking for Drugs) Order 2025 is not suitable under Act 723,” opined CCC Malaysia representative Tarmizi Anuwar whose view runs parallel with the stance of the Medical Association (MMA).

“Act 723 is more geared towards controlling the prices of essential goods and profiteering, not managing the more complex structure of the healthcare services market.”

Yesterday (May 6), more than 200 doctors from15 medical associations – mostly private general practitioners (GPs) – gathered near the Prime Minister’s Office (PMO) in Putrajaya to protest the mandatory display of drug prices under Act 723.

The event culminated in the handing over the handing over of a memorandum highlighting the issues faced by private clinics by the participating associations to the Prime Minister’s Office (PMO).

In Tarmizi’s contention, there is significant risk if the regulation continues to be placed under Act 723 as this may lead to medicine shortages, stifle innovation or a decline in the quality of healthcare services due to the pressure to reduce prices.

In this regard, he suggested that the regulation be reviewed under the Private Healthcare Facilities and Services Act 1998 (Act 586) which is more appropriate for addressing issues related to private healthcare facilities.

“Controlling medicine prices through a price control order will stifle innovation and investment in the private healthcare sector and cause widespread shortages,” he projected.

Consumer Choice Centre (CCC) Malaysia representative Tarmizi Anuwar

“In the long run, it is the consumers who will suffer – not through cheaper prices but through deteriorating service quality.”

Commenting on the subject of consultation fee review, Tarmizi insisted that consultation fees should not be set by the government “whether as a minimum or maximum rate”.

“Fee pricing should be determined by market frces based on factors such as service quality, doctor expertise and location,” he asserted.

“This will encourage the private sector to be more competitive, thereby offering consumers a broader range of choices. “

Added Tarmizi: “A competitive private sector will also help reduce pressure on the public healthcare system by providing more service options and reducing consumer waiting times.” – May 7, 2025

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