Drug Prices

Name and Constituency of Member of Parliament

Mr Christopher de Souza
Holland-Bukit Timah GRC

Question No. 4

To ask the Minister for Health (a) what is the rationale for the difference in the cost of medication in local hospitals and pharmacies as compared with those in neighbouring countries; and (b) whether there will be a review of pricing policy in order to balance out the cost between the two, if possible, so as to make medication more affordable for Singaporeans.

Written Reply

1.                 The cost of medicines differs across countries due to factors such as operating costs as well as pharmaceutical firms’ pricing strategy for the various markets, which takes into account the size and purchasing power of the respective markets. 

2.                 To reduce the cost of medicines, our public healthcare institutions undertake joint group procurement for about 90% of our drugs to enjoy economies of scale.  The savings are reflected in the prices of medicines sold to patients.

3.                 To keep drugs affordable for subsidised patients, the Ministry of Health regularly reviews the subsidies of medications which were recently enhanced to improve their affordability.  Since 1 January 2015, lower- to middle-income patients at the Specialist Outpatient Clinics (SOCs) and polyclinics can receive 75% subsidy for drugs listed on the Standard Drug List (SDL), up from 50% previously.  This effectively halves the patients’ share of the cost of their medications.  Pioneers enjoy a further 50%-off their subsidised outpatient drugs.  

4.                 Besides helping patients pay for their drugs, the Ministry also regularly reviews the coverage of subsidised drugs.  In 2015, 12 new drugs were added into the SDL and Medication Assistance Fund, including drugs used to treat colorectal cancer and Alzheimer’s disease.  We will continue to review our policies to keep healthcare affordable.