Chain pharmacies offer savings, but independents still win on trust

New Straits Times

07-05-2025

ALOR STAR: Malaysians are increasingly split between choosing chain pharmacies for their competitive prices and sticking with trusted, independent community pharmacists — especially as new pricing regulations come into force.
For Roshila Murni Rosli, a diabetic patient undergoing dialysis, affordability and convenience took precedence in her decision-making, with chain pharmacies emerging as the clear winner.
"Prices are usually much better and their service is good enough. Pharmacists still explain what I need to know."
The implementation of mandatory price labelling at all pharmacies from May 1 has further empowered her choices.
"This is a good step forward. It makes it easier for people like me to compare and make informed decisions," said the private sector worker in her 30s.
She said she had no issue with independent pharmacies, but they often lacked medication she needed or they were too costly.
"It's not that I don't want to support the small guys, but sometimes the price difference is too much."
For retired civil servant Azizan Rosman, 76, the choice is not quite as clear-cut.
For more than a decade, he was loyal to an independent pharmacy in his neighbourhood until the rise of chain pharmacies prompted him to reconsider his options.
"Now, I decide based on what's convenient for me. If it's something basic or cheaper at the chains, I'll go there. But when I need proper advice, I come back here," he said after picking up medication at a pharmacy here.
Azizan said he valued the long-standing trust he had built with his local pharmacists, who were familiar with his medical history and offered tailored advice.
"They're honest and transparent. I've known them for years. They sometimes carry medication I can't get at the chains."
He acknowledged the price gap, saying independent pharmacies could not compete with the bulk-buying power of large chains.
"I feel sorry for them because they don't get the same discounts, but as a consumer, flexibility is a good thing."
The growth of chain pharmacies has not gone unnoticed by health policy experts, who say it is a natural result of market forces.
But they warn against overlooking the role of independent players.
Galen Centre for Health and Social Policy chief executive Azrul Mohd Khalib said volume-based discounts allowed chain pharmacies to offer lower prices.
"This is how a free market works. It rewards scale and efficiency, which ultimately benefits the public."
However, he said, independent pharmacies played a critical role in filling gaps, especially in rural or underserved communities.
"They often stock items not available in government or private clinics and they're usually more accessible for personalised counselling."
While some have called for government intervention to protect small pharmacies, Azrul believed collaboration, not regulation, was the way forward.
"Rather than more government intervention, what's needed is smarter collaboration, such as shared warehousing or pooled procurement among independent pharmacies."
But he admitted that this was easier said than done.
"There is competition even among independents. These ideas sound good on paper, but implementation is tough without a willingness to cooperate."