Many gave it the thumbs-down but the government went ahead and made it mandatory to place security hologram labels on pharmaceutical products, which inevitably led to a price increase.

'But why?' asked puzzled detractors. They have yet to receive a satisfactory answer.

Another question is the rationale behind using hologram labels imported from France when it could be produced here at a cheaper rate and hence not burden consumers any further.

Apart from consumer associations and the public, the 53-member Pharmaceutical Association of Malaysia (Phama) also shot down the idea.

The Health Ministry mandated that starting May 1, all registered pharmaceutical products have to carry a 8mm x 16mm hologram, each with its own distinct registration number, to help in the detection of counterfeits and unregistered products.

All new over-the-counter non-injectable products began carrying the labels five weeks ago while injectable items were only required to be labelled from July 1 onwards. Certain products such as cosmetics and temperature-sensitive items were exempted from the need to be affixed with the hologram.

Knee-jerk reaction

Critics speculated that the move was a typical knee-jerk reaction to several cases of counterfeit medication and supplements circulating in the market.

Others claimed that it was yet another example of cronyism - a creation of a business opportunity awarded to 'friends of the administration'.

The hologram labels (Meditag) are sold at a rate of 5.6 sen a piece, with a minimum order of 200 labels for manual labelling and 15,000 for machine-pressed labels, by sole authorised supplier Mediharta Sdn Bhd.

The company is owned by a number of well-connected individuals including Saleha Mohd Ali, the sister-in-law of ex-prime minister Dr Mahathir Mohamad.

Phama, whose members include Bayer (M) Sdn Bhd, Bristol Myers Squibb (M) Sdn Bhd, GloxoSmithKline Pharmaceutical Sdn Bhd and Pfizer (M) Sdn Bhd, suggested alternatives to the hologram.

In a position paper published in the American Malaysian Chamber of Commerce website, it said the hologram use was not a foolproof security measure.

"Sophisticated and well-financed counterfeiters are capable of defeating any of the currently available authentication technologies," read the paper.

Phama exemplified cases in Asia and Russia where similar holograms had been duplicated within six months of introduction. It also submitted that the introduction of a single-type label served to only make it easier for culprits to copy it.

The body, formed in 1972, recommended as alternatives that a committee comprising government and industry representatives be established to allow permanent discussions and efforts to monitor, exchange information and curb counterfeiting activities.

Other recommendations included training customs and enforcement officers to identify authentic pharmaceutical products as well as a revision of current laws, pertaining to counterfeiting these products, to establish more stringent enforcement and punishment against culprits.

'Don't burden consumers'

Contacted yesterday, Federation of Malaysian Consumers Associations (Fomca) president N Marimuthu said the government were targeting and punishing the wrong party.

"Of course it is a safety precaution but there is really no need for these holograms. It's simple, most consumers don't buy their medication and vitamins from kedai kopi or warung (coffee shops or stalls). They get it from legitimate pharmacies, doctors and sometimes direct-selling companies.

"These professionals certainly know if they have counterfeits. The government can make sure these parties are responsible in not selling fake products by conducting things like spot-checks but don't make the consumer liable by forcing these labels which cause price increases," he added.

Critics also pointed out that if the use of these holograms were extremely effective, the multi-billion dollar global pharmaceutical industry and major drug-regulatory bodies would be using it. However, that is not the case.

Meanwhile, hologram supplier Mediharta, in an e-mail reply, reiterated its stand that it was working with the government to eliminate the presence of unregistered health products in the market.

"The dangers from unregistered products are real and the threat has been increasing in recent years. In Malaysia RM6.5 million worth of unregistered health products were seized in 2003. In 2004, this quadrupled to RM26 million," said a senior representative from the company.

Highly tested label

Requesting anonymity, the official said the label's security features were highly tested, scientifically, and that the hologram was difficult to forge.

"To say it is just a hologram is a serious misconception. The security features embedded in it are a combination of different fields of security technology," added the official.

Mediharta claimed that it had received strong support from companies in the industry and that Meditag has helped companies maintain their business competitiveness.

"All registered companies have already commenced with their application of the Meditag and it is interesting to note that some companies, who had been exempted, have actually requested that they be included in this exercise," it added but clarified that only companies requiring the labels were provided with it.

The company highlighted media reports in the past of cases involving people who inherited adverse effects - including death - from using unregistered medications.

These medications include drugs used by a plastic surgeon in Jalan Raja Laut whose client, a stewardess, died in October last year as well as Viagra and other sex stimulants.