Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
ALMOST all families have one or more members that have or develop a serious ailment, be it heart disease, hypertension, cancer, asthma, Parkinson’s Disease, HIV/ AIDs and so on.
<P>And each patient needs medicines. Prices
are often high and make a big dent in the household budget. If the cost is too
much, the family looks on miserably as the patient endures sickness without the
full treatment he or she deserves. </P><P>This is the background to the growing
debate on one aspect of some Free Trade Agreements (FTAs). </P><P>Last week, Malaysia’s
generic drug companies publicised their grave concerns that the FTA that Malaysia
is negotiating with the United States will hinder or even kill their operations.
</P><P>Generic medicines are cheaper than the branded ones. If there are no or
fewer generic drugs, patients have to pay more – maybe ten times more in
some cases. </P><P>“Patented medicines in Malaysia can be 1,044% more expensive
than their generic equivalents, so extensions of (patent) monopolies under MUFTA
(the Malaysian-US FTA) will condemn Malaysians to paying higher prices for longer,”
said Jimmy Piong, vice-president of the Malaysian Organisation of Pharmaceutical
Industries, in a letter in the New Straits Times last week. There will also be
serious restrictions on Malaysia’s ability to issue compulsory licences the
way it successfully did in 2003, said the group. </P><P>In that measure, the import
of some HIV/AIDs generic drugs from India cuts costs to one-seventh, and the Health
Ministry could treat many more patients. </P><P>It was a pioneering move that
other countries (like Indonesia and Thailand) were to follow. Piong also revealed
that “one of Malaysia’s largest generic manufacturers has announced
it will set up its manufacturing operations in India because once the FTA takes
effect, it would stand to lose to US-based multinational pharmaceutical companies.”
</P><P>The organisation’s worries and warnings are well founded. Almost all
patents registered in Malaysia are foreign owned, so the tightening of patent
laws due to MUFTA will benefit the foreign companies, at the expense of local
companies and consumers. </P><P>Both the government and private patients have
to shell out more money as drug prices soar. For example, South Korea will pay
US$757mil (RM2.6bil) more a year if drug patents are extended by four years due
to an FTA with the US, according to the Korean National Health Insurance Corporation.
</P><P>The South Korean Health Minister also warned that under a free trade deal,
the damage to South Korea’s drug industry might be between US$629mil to US$1bil
(RM2.2bil to RM3.5bil). </P><P>Colombia’s generic drug industry may lose
71% of its local market share due to the country’s FTA with the US, according
to an estimate from the World Health Organisation’s model. </P><P>One extreme
proposal of the FTA is for “data exclusivity”, that data submitted by
an originator company to get safety approval from the health authorities for its
drug cannot be used as the basis to also approve the safety application for generic
versions of the same drug. This use of the data is presently common practice.
</P><P>The US demand in other FTAs is that this “data exclusivity” applies
(for at least five years) even to non-patented drugs. Most locally produced or
imported generic medicines are versions of non-patented drugs. </P><P>With this
“data exclusivity”, generic drugs can’t get safety approval and
won’t be marketed. There is thus a danger that the cheaper drugs will not
be available, and patients have to pay more for branded products. </P><P>Besides
medicines, there are other serious issues thrown up by the FTA. Farmers will be
challenged by possible zero tariffs and competition from subsidised (thus artificially
cheapened) American farm products, as well as a possible ban on their ability
to save and exchange seeds that are subject to intellectual property. </P><P>Local
banks, retail shops, telecom and broadcast companies, professionals (lawyers,
doctors, architects, engineers) and others may face stiffer competition under
accelerated liberalisation of services. </P><P>The Government’s procurement
business, worth RM100bil, which is mainly reserved for locals, will be thrown
open to American companies, if the US demands are agreed to. </P><P>And the many
regulations restricting the maximum foreign ownership share of many sectors are
also being challenged. </P><P>Many national policies and practices are thus being
subject to such strong pressures and challenges under an FTA. The question naturally
arises, is it worth paying such a high cost, and for what benefits? </P><P>Moreover,
once the concessions are made for one country, it is a matter of time before the
same has to be given to other countries that also seek FTAs. </P><P>Due to these
many problems, many FTA negotiations do not conclude. Countries start with hopes
of many benefits and then decide to suspend or stop the talks when they realise
there are too many problems. </P><P>Those who have stopped or suspended their
FTA talks with the US include Switzerland, Thailand, Southern African countries,
and the Free Trade Area for the Americas (involving the US and the South American
and Caribbean region).</P><P><I>Source: http://thestar.com.my/news/story.asp?file=/2007/3/5/focus/17043994&sec=focus</I>
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com