Security hologram labels on pharmaceutical products will not curb counterfeits in the market and only serve to burden consumers with a price hike. This was the feedback obtained during a visit to five pharmacies in Kuala Lumpur today.

The 'anti-counterfeit' 8mm x 16mm labels for all new over-the-counter (OTC) non-injectable products were introduced on May 1 following a directive from the Health Ministry.

Critics have since questioned if holograms are the solution to curb counterfeit drugs and supplements as these labels are not beyond forgery.

The Pharmaceutical Association of Malaysia (Phama) had also given the move a thumbs-down before it was mandated and offered alternative measures.

However, the holograms sole-authorised distributor - Mediharta Sdn Bhd - claimed the labels are of high-quality and difficult to replicate.

Effective enforcement

Some of the pharmacy stake holders and chemists met this morning were highly sceptical and critical of the move and the labels' security features.

"The idea was not thought about deeply enough. These holograms can be imitated. Look at the DVD (digital video discs) holograms. The problem is that fake items are usually found in small stores or sundry shops mainly in rural areas.

"Things like Panadol (famous local aspirin) and Viagra - despite efforts to place labels on them for authentication - are often counterfeited and sold widely," said a chemist with the Familicare pharmacy in Jalan Ampang.

Requesting anonymity, the chemist, who is also a stakeholder in the pharmacy, said a more appropriate move would be to stop the supply of fake products into the market. This can be done via stronger enforcement measures that prevent the import and local-manufacturing of fakes.

Asked how she avoided selling bogus goods, the pharmacist said she obtained her supply from legitimate, trustworthy and household-name suppliers.

"I always buy originals. It is a must...especially in a high expatriate market area. Pharmacists really don't want to be subjected to too many checks by enforcement officers," she added.

Government enforcement agencies conduct checks on her outlet once a year.

Critics have also questioned the authorities on who is liable - the chemist or the label manufacturer - if fake products with authentic labels are consumed and result in deaths.

Not all products sold in Familicare were labelled with the hologram as not all of the stock were supplied after the ruling six weeks ago. The authorities had instructed that products supplied before the ruling can be sold despite the absence of the hologram.

One item, an antihistamine called Polaramine , displayed in Familicare with the security label had increased in price.

However, the chemist clarified that the price hike, of five to seven percent, for that particular product, was introduced this February. It was being sold at the outlet for RM18.50.

"I cannot say for sure if it increased because of the holograms. They (suppliers) may have increased it in February in its anticipation. But there has been a general price hike on all products recently. Consumers always end up bearing the costs," she said.

The hologram labels (Meditag) are sold at of 5.6 sen a piece, with a minimum order of 200 labels for the manual-labelling type and 15,000 for machine-pressed labels.

More suppliers needed

At another pharmacy in Taman Sri Hartamas, its operators were also critical of the new move.

Mazlan Yahya, chemist and stakeholder of Vitamedic pharmacy, echoed calls for proper enforcement, beginning with efficient customs checks to prevent fake products from entering the market.

He also suggested that more companies be allowed to supply the hologram to make the prices competitive.

"Make it a free-market. Why only one supplier? There has to be ways to curb price increase when regulating products. Furthermore, if the holograms are sold in big bulks, its price should be reflective," he said.

Awarding the sole-distributorship of the holograms to Mediharta has raised questions as 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.

Meanwhile, a check on the products in Mazlan's outlet revealed that even popular products, which have been free of price jumps over the years, cost more now. In general, products in this pharmacy have increased by five to 10 percent.

Among these products, is the popular Minyak Cap Kapak ointment.

"For the first time in 10 years of operations, I've had to increase the price (by 10-20 sen) for the ointment," said Vitamedic's outlet manager, who did not want to be named.

However, she added that the price of another locally popular cough syrup Ubat Batuk Cap Ibu dan Anak (Nin Jion Pei Pa Kon) , although carrying the hologram, remained the same.

There were sharp increases in certain exported products with some showing a jump in as much as RM20.

The manager added that a multi-vitamin product for children, Kiddi Pharmaton Syrup , which had the hologram, had to be increased by RM1.50. However, the pharmacy sells it at about RM3 cheaper than the recommended selling price on the box.

Meanwhile, Watson's (another famous local pharmacy franchise) at the Bangsar Shopping Centre, revealed that it has yet to increase its prices of products with the hologram.

It could not be ascertained if its competitor at the shopping centre, Guardian Pharmacy, had increased its hologram-labelled product prices as its store manager declined to comment.

It was the same reaction at its outlet in Section 14, Petaling Jaya. Both branches had marginal products which carried the hologram. There has been no response from Guardian's head office when contacted this afternoon.

Reconsider directive

In a related development, the Fast Moving Consumer Goods (FMCG) industries, in a new position paper published recently on the American Malaysian Chamber of Commerce website, urged the government to rethink its directive.

"We appeal for the review of the ministry's mandatory hologram ruling and consideration of alternative approaches in combatting counterfeits and unregistered products.

"FMCG companies believe that the best strategy is to study and recommend the best alternatives through formation of an MOH-Industry Task Force," it said in the paper while making other recommendations such as stiffer penalties for offenders.

The FMCG industry represents healthcare products that are sold freely in the market under the classification of OTC pharmaceuticals. These products are mainly externally-used remedies and external personal care products such as anti-dandruff shampoo and anti-bacterial soaps.