This comes a week after Putrajaya said it was ending the company’s concession to distribute medicines to public hospitals as the government seeks to introduce an open tender system and end Pharmaniaga’s monopoly.

Health Minister Dzulkelfy Ahmad said the interim period would be until Dec 31, 2021.

“This is to ensure there will be no disruption in the procurement and distribution of drugs and medical supplies,” he told reporters here today.

On Oct 31, The Star quoted Dzulkefly as saying that the government would no longer use concessionaires for logistics and the distribution of medical supplies.

He also said that Pharmaniaga, which has the sole concession to purchase, store, supply and distribute at least 700 pharmaceutical products on the Approved Product Purchase List, would be given a temporary extension of services.

The company’s concession ends on Nov 30.

Today, Dzulkefly said the government had agreed to conduct an open tender for a new concessionaire with the successful bidder offered a five-year contract.

He said that through this open tender, everyone would also be allowed to bid for the contract, including Pharmaniaga.

“But it will be awarded to the most qualified company.”