KUALA LUMPUR: The Health Ministry will extend the provision of medicines and medical supplies for its facilities from Pharmaniaga Bhd for another 10 years.
Health Minister Dr Zaliha Mustafa said the period would be extended once the interim period ends in June this year.
"We cooperate closely with Pharmaniaga, not only as a government-linked company (GLC), but as a system that has been utilised for a long time in terms of logistic matters.
"So, we need them, and it is our responsibility to continue the consensus (with them) as a GLC under the government," she said when met by reporters after the Health White Paper townhall session here today.
Previously, the government extended the date for negotiations for Pharmaniaga's concession agreement to June 2023 following the pharmaceutical company's loss of RM607.32 million for the financial year ending Dec 31, 2022 against a net profit of RM172.15 million in the previous year.
This was due to the RM552 million provision for "slow-moving stocks of Covid-19 vaccines" pushing the company under the financially troubled PN17 category.
Its revenue also tumbled 27.1 per cent to RM3.51 billion from RM4.82 billion as there was lower demand from the government for the purchase of Covid-19 vaccines.