Malaysia’s Vaccine Surplus: Pharmaniaga Continued To Overbook, Claims Khairy
Despite the government’s clear communication about having secured enough COVID-19 vaccines for the Malaysian population, Pharmaniaga continued to overbook, resulting in a surplus of doses and potential financial strain.
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At a talk titled “ASEAN Vaccine Diplomacy: Strategies, Challenges, and Future Directions” held at the University of Malaya today (27 June), former Health Minister Khairy Jamaluddin made a startling revelation about Malaysia’s pharmaceutical giant, Pharmaniaga.
Khairy disclosed that despite the government’s clear communication about having secured enough COVID-19 vaccines for the Malaysian population, Pharmaniaga continued to overbook, resulting in a surplus of doses and potential financial strain.
This overstock has raised concerns about the company’s financial well-being, as they may struggle to bear the costs associated with the unnecessary excess inventory.
Pharmaniaga’s Explanation and PN17 Status
Khairy mentioned that when questioned about the overstock, Pharmaniaga explained that they had their own market for the vaccines.
However, Khairy expressed his puzzlement over this statement, as he was unsure what other market Pharmaniaga could be referring to.
As a result of this overstock fiasco, Pharmaniaga, a government-linked company (GLC), has been classified as a PN17 company in February 2023.
PN17 stands for “Practice Note 17,” which is a category assigned by Bursa Malaysia to financially distressed companies that meet certain criteria, such as having a shareholders’ equity of less than 25% of their total paid-up capital.
Companies under PN17 status are required to submit a regularization plan to Bursa Malaysia to address their financial difficulties, failing which they may face delisting from the stock exchange.
Exposing Challenges and Lessons Learned
Khairy’s frank discussion during the vaccine diplomacy talk also exposed the difficulties encountered by the Malaysian government and pharmaceutical industry in managing vaccine procurement and distribution amidst the global health crisis.
The former Health Minister’s disclosure pointed to the necessity for improved communication and coordination between the government and private sector during times of crisis.
Khairy also highlighted the selfishness of Western countries in hoarding vaccines when the pandemic first broke out, leaving developing nations struggling to secure adequate doses for their populations despite having the money to pay for it.
Furthermore, Khairy touched upon the criticism he faced during his tenure as Health Minister, particularly from vaccine skeptics who accused him of pretending to take the vaccine himself while encouraging the public to get vaccinated.
He clarified that he had indeed received the vaccine and emphasized the importance of leading by example in promoting public health measures.
In addition, Khairy discussed how the pandemic management was streamlined during former Prime Minister Datuk Seri Ismail Sabri Yaakob’s administration by reducing the number of ministers involved in decision-making processes related to Movement Control Orders (MCO) and lockdown conditions.
Preparing for Future Pandemics and Addressing Misconceptions
Furthermore, Khairy stressed the importance of Malaysia being prepared for future pandemics by developing its own vaccine manufacturing capabilities.
He highlighted the need for the country to invest in research and development, as well as infrastructure, to ensure that Malaysia can produce its own vaccines in the event of another global health crisis.
Khairy also addressed the accusation that he had purposely made life difficult for people who did not get vaccinated.
He explained that this was a case of “lost in translation” when talking to the press and an honest misstep on his part.
Khairy clarified that his intention was never to punish or discriminate against those who chose not to get vaccinated but rather to encourage vaccination as a means to protect public health and allow the country to return to normalcy.
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