WHAT DOES GALEN WANT

• Azrul Mohd Khalib, CEO of think tank Galen Centre for Health and Social Policy says ending Pharmaniaga's concession will create disruptions in the logistics chain and will favour the larger players who already supply multiple products to the Health Ministry.

• It is impossible to end the concession immediately without causing massive disruption.

• Therefore, the government should grant a further five-year concession to Pharmaniaga and in the meanwhile begin making preparations for a transition to an open tender for the APPL by the time the period ends. This should be the way forward.

WHAT PLAYERS SAY:

• If the concession is ended, all these companies would need to develop and manage their own ordering systems and logistics processes to supply the medicine or devices directly to the hospitals and clinics in both peninsular and east Malaysia which may lead to short term supply disruptions and potentially higher pricing,

WHY PHARMANIAGA DESERVES THE CONCESSION

• MIDF Amanah Investment Bank Bhd analyst Nabil Fikri Zainoodin notes that Pharmaniaga has fulfilled the strict requirements of the concession contract.

• There is a fair chance that the concession business will still be awarded to the company based on its years of experience and expertise in the logistics and distribution business, which can be seen as a huge amount of investment to ensure efficient deliveries and massive savings enjoyed by the Health Ministry from Pharmaniaga's handling capability.