The State Trading Organization (STO) announced on Friday evening that it is working with the United Nations Development Programme (UNDP) to ensure uninterrupted medicine supplies in the Maldives, focusing particularly on less readily available medicines. The announcement was made during the STO Annual General Meeting 2023.
During the Q&A session at the AGM, shareholders raised concerns about supply-chain disruptions affecting the availability of medicines. In response, STO Managing Director Shimad Ibrahim acknowledged the difficulties faced in maintaining a consistent supply of medicines. He attributed recent disruptions to software upgrades but assured shareholders that these issues would not be permanent.
Ibrahim further noted that the Ministry of Finance and UNDP have reached an agreement aimed at ensuring a steady supply of both commonly available and scarce medicines. He explained that due to the small size of the Maldivian market, pharmacies and special distributions often struggle to receive medicines in the minimum order quantities required by suppliers.
“The agreement between the Ministry of Finance and UNDP will see UNDP providing medicines through health procurement channels. I believe that once doctors start prescribing medicines through the Aasandha portal, this issue will be resolved,” said Ibrahim.
He emphasised that supply-chain disruptions in medicine procurement are a significant concern, and assured that STO is working diligently to find comprehensive solutions.
The Maldives’ highest expenditure under the Aasandha health insurance scheme is on medicine procurement, with the state spending over MVR 500 million annually. The government has been taking measures to reduce these costs. A World Bank report previously highlighted that medicines in the Maldives are sold at prices MVR 15 to 75 higher than global rates.
This partnership with UNDP represents a strategic move to stabilise medicine supplies and ensure that both common and scarce medicines are available to the Maldivian public without interruption.
