President Dr Mohamed Muizzu has announced the formation of the State Pharmaceutical and Medical Supply Corporation Limited, a fully state-owned company responsible for the procurement and distribution of medicines, medical consumables, and equipment across the Maldives. The company was established under the authority of Section 15 of the Companies Act (Act No. 7/2023), with all its shares held by the Government.
The new corporation will assume responsibilities previously handled by the State Trading Organization (STO), aiming to streamline medical supply chains and ensure consistent access to essential healthcare products throughout the country.
In recent months the Maldives has faced repeated challenges in sourcing medicines, with shortages of essential drugs affecting patients across the country. Many people have struggled to access basic medicines such as pain relievers, treatments for long-term illnesses, and paediatric drugs. Delays in payments from the national health insurance scheme created difficulties for importers, while price controls reduced incentives for retailers to stock certain medicines. Restrictions on who could import pharmaceuticals further limited the ability of STO to fill supply gaps.
To address these problems, STO sought partnerships abroad to improve supply reliability. It also worked with international agencies to bring in medicines through global procurement systems at more affordable prices. While these measures eased some pressure, public frustration has continued, with many patients still reporting difficulties in getting the medicines they need.
The creation of the State Pharmaceutical and Medical Supply Corporation comes against this backdrop of persistent difficulties in the supply chain. By centralising procurement within a dedicated government-owned entity, the authorities aim to tackle long-standing weaknesses and establish a more stable and reliable framework for healthcare delivery. The government has stated that the reform is intended to ensure continuity and accessibility of medicines across the country.
