August 19, 2024

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Guide to Open an Independent Pharmacy in Malaysia

As of June 4, 2022, Malaysia has 5,271 community pharmacies and 3,835 other pharmacies. This indicates a robust and growing market for pharmacy services.

Guide to Open an Independent Pharmacy in Malaysia

As of June 4, 2022, Malaysia has 5,271 community pharmacies and 3,835 other pharmacies. This indicates a robust and growing market for pharmacy services. If you are considering starting an independent pharmacy, these numbers highlight the strong demand and potential to serve your local communities effectively.

Key statistics on community pharmacies in Malaysia:

70% of community pharmacies are independent or small branches.
Selangor has the most License A holders with 13,000, while WP Labuan has the lowest with 6.
COVID-19 drove a 38% increase in pharmacies, from 2,779 in 2019 to 3,835 in 2022.
WP Labuan has the highest ratio of population per community pharmacist at 16,683.30, while WP KL and Putrajaya has the lowest ratio at 3,362.27.

Starting an independent pharmacy in Malaysia involves several important steps and legal requirements. For newbie pharmacists and small business owners interested in opening their own community pharmacy, understanding the right procedures are important. This guide will help you navigate the process, from registration to meeting regulatory standards in order to set up your own independent pharmacy and serve your local community effectively.

1. Market Research

Market research is a vital first step when planning to open an independent pharmacy because it helps you understand your target market, identify opportunities & challenges, and position your pharmacy for long-term success. Through the data and research that you conduct, you can make informed decisions that will increase your chances of success and ensure that your pharmacy meets the needs of the community it serves.

Here are 3 important aspects of market research that you can focus on:

i. Location

Where do you plan to open your independent pharmacy? Unlike chain pharmacies that choose locations based on high traffic and profitability, independent pharmacies often focus on serving underserved communities, whether in rural or urban neighborhoods that lack adequate healthcare services. This provides an opportunity to fill the gap in these areas, offering essential access to medications and healthcare services where they are most needed. Here are some considerations when selecting a location:

ii. Target Market

Identifying your potential target market before setting up an independent pharmacy ensures that your business meets the real needs of the community. To effectively serve your target market, consider the following key aspects:

Who are your potential customers?

Are they families, elderly individuals, or specific patient groups with particular health needs?

What are their healthcare needs?

Do they require regular prescriptions, specialized medications, or wellness products?

How can you meet their expectations?

Think about the level of service, convenience, and personal attention that will attract and retain customers.

By considering these aspects, you will be able to stock the right pharmaceutical products, provide the best services, and build a business model that truly resonates with your customers.

iii. Setup Cost

The cost to open an independent pharmacy in Malaysia is widely based on location, size, and the services you plan to offer. However, the initial capital cost to open an independent pharmacy ranges from RM120,000 to RM150,000.

In addition to this, you should also factor in other costs such as:

Renting

Monthly or annual lease payments for your chosen property.

Renovation

Expenses for remodeling and fitting out your space to meet regulatory requirements and create a functional layout.

Pharmaceutical & Medical Supplies

Costs for purchasing shelving, counters, and initial inventory.

Licensing and Permits

Fees for obtaining necessary licenses and permits.

Staffing

Costs for hiring and training your team.

Technology

Investment in pharmacy management systems and point-of-sale technology.

Marketing

Budget for promotional activities to attract customers.

Learn how PharmaRise can support your setup with reliable supply chain solutions to streamline your pharmacy's launch.

2. Partner with Pharmaceutical and Medical Suppliers

After completing your market research, the next crucial step is to find and partner with trusted suppliers for your pharmaceutical and medical products. Establishing a reliable supply chain ensures that once you open your pharmacy, you’ll be well-stocked with the medications and healthcare products your customers need.

i. Choosing the Right Partner

Look for reputable pharmaceutical companies that offer integrated wholesale and distribution services, or even complete supply chain solutions. When choosing a wholesale distributor, consider their proximity to your store, as closer proximity can lead to faster delivery times. Assess their product range, delivery reliability, and pricing to ensure they align with your pharmacy’s needs.

ii. PharmaRise as a Reliable Supply Chain Partner

Sometimes, it may be necessary for a pharmacy to rely on multiple wholesalers to cover all their needs. In such cases, having a trusted partner like PharmaRise can simplify the process by providing consistent support and efficient service. PharmaRise has been a trusted name in the industry for over 20 years, standing out as a reliable supply chain partner. We offer comprehensive solutions that include both wholesale and distribution services for healthcare sectors including all types of pharmacies. With us, you gain access to a wide range of pharmaceutical and medical products, ensuring you have the inventory needed to meet your customers’ demands efficiently.

Learn how partnering with a trusted pharmaceutical wholesaler can drive growth for your pharmacy.

Learn More

3. Legal Requirements

To operate an independent pharmacy in Malaysia, you must obtain several key licenses and permits. Following are the requirements:

i. Business Registration

Register your pharmacy as a legal entity with the Companies Commission of Malaysia (SSM) to ensure that your business is recognized by law. This step is required for operating your pharmacy, as it officially establishes your business, allowing you to open bank accounts, sign contracts, and engage in other legal business activities. Proper registration also helps build credibility with suppliers, customers, and partners.

ii. Pharmacy License

To legally operate your independent pharmacy, you must apply for a license through the Pharmacy Services Programme under the Malaysian Ministry of Health (MOH). This license guarantees that your pharmacy adheres to all regulatory requirements and standards set by the government. For most independent pharmacies, the Type A License is required. This license is issued to pharmacists, allowing them to import, store, and sell poisons both by wholesale and retail, or by either method individually. Obtaining this license is a key step in the process of setting up your pharmacy and ensures that you can legally handle a wide range of pharmaceutical products.

Summary

To sum up, starting an independent pharmacy in Malaysia requires careful planning, adherence to regulations, and strategic partnerships. By focusing on these aspects, you can establish a successful pharmacy that meets community needs and operates efficiently.

Looking for a partner to rise and grow together?

At PharmaRise, we are committed to supplying independent pharmacies with high-quality pharmaceutical and medical products sourced from trusted manufacturers, ensuring that you always have the medications you need in stock.

Reach Out to Us Today

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