Pharmaceutical products made up 80pc of the $113 million import figure. Pic: Hein Latt Aung

THE import of pharmaceuticals and medical equipment increased 10 percent in the 2007-08 financial year to US$113 million, up from $100 million in 2006-07, according to the statistics from the Ministry of Commerce.

Distributors and importers said the continued rise in pharmaceuticals and medical equipment imports was due to higher demand in the local market. Pharmaceuticals and medical equipment were the seventh highest import category in terms of dollar value in the past financial year.

“Peoples’ awareness and knowledge of healthcare is now better and more widespread so the country’s purchasing power of medical equipment and quality pharmaceuticals is on the rise,” said U Pyi Sone Aung, managing director of A A Group Limited, one of the most well-known medical equipment distributors in Myanmar.

However, the import value was down slightly on estimates made by the Myanmar Pharmaceuticals and Medical Equipments Entrepreneurs’ Association (MPMEEA). An official told The Myanmar Times last month the association expected imports to reach about $120 million in the 2007-08 financial year.

About 80 percent, or $90 million, of the export total was spent on pharmaceutical products while the remaining 20pc was attributed to medical equipment imports, according to the Ministry of Commerce.

Pharmaceuticals are mostly imported from neighbouring countries such as India, Thailand, China and Bangladesh, Malaysia, Indonesia, and South Korea. Medical equipment is mostly imported from China and Singapore and some EU countries, such as Germany.

Imports from India occupied the biggest market share in Myanmar, contributing more than 40 percent of the total import value of pharmaceutical products, according to the statistics from the Ministry of Commerce.

“Imports from Asia make up the majority of pharmaceutical imports in Myanmar – imports from rest of the world, including European countries, are very negligible,” Dr Maung Maung Lay, managing director of Ni Lay Naing Company Ltd., told the Myanmar Times.

“Demand for medical equipment is also on the rise as private clinics and government hospitals are replacing old equipment with new, state of the art medical equipment so they can give patients more accurate diagnosis, “ U Pyi Sone Aung said.

There are about 6000 different kinds of branded pharma-ceuticals registered with the Food and Drugs Administration (FDA) from 300 companies all over the world.

Myanmar has only three local pharmaceutical factories – in Yangon, Tat Kone and Pyin Oo Lwin – which are all operated by the Myanmar Pharma-ceutical Industry (MPI) under the Ministry of Industry (1)

The factory in Pyin Oo Lwin became Myanmar’s third pharmaceutical manufacturing factory, opened in December 2007.

Industry experts estimate that, prior to December 2007, about 80 percent of local pharmaceutical products were imported.

“In accord with Trade Related Intellectual Property Rights set by World Trade Organization (WTO), Least Developed Countries are eligible to manufacture pharmaceuticals,” Dr Maung Maung Lay said.

He told The Myanmar Times that, as Myanmar is classified a Least Developed Country, it was eligible to manufacture pharmaceuticals under the TRIPR agreement. He said further expansion of local pharmaceutical manufacturing could be beneficial.

“If the private sector has a chance to manufacture pharmaceuticals in the country,” he said, “the price of medicine and medical equipment should decrease.

Since Myanmar introduced the market-oriented economic policy in 1989, the private sector has been allowed to import pharmaceuticals from abroad.