Questions have been raised over a procurement decision by Malaysia’s Ministry of Health (KKM) involving security hologram labels supplied through a company that fully imports the materials, with industry players warning of potential security risks and impacts on local manufacturers.
Techno Secure Print Sdn Bhd general manager Fairuz Yahya said the main concern is the lack of direct oversight by Malaysian authorities such as the Chief Government Security Office (CGSO) and the Ministry of Home Affairs (KDN) when production takes place overseas. He said this limits regulatory monitoring of the manufacturing process.
Fairuz warned that producing security labels outside the country could increase the risk of leaks, where sensitive materials may fall into the hands of unauthorised parties. He stressed that local production allows for tighter supervision and compliance checks under government regulations.
He added that Malaysia’s local security printing industry is already subject to strict controls, including machine certification, audits, and regulatory verification processes. According to him, domestic manufacturers are capable of producing high-quality security labels while maintaining stronger integrity standards.
The Ministry of Health has previously clarified reports regarding alleged weaknesses in the hologram authentication system for health products, stating that the current mechanism remains functional and effective in ensuring consumer safety. The system forms part of the regulatory framework under the Drug Control Authority to prevent counterfeit or unregistered products.
KKM also said it continuously conducts comprehensive monitoring, covering product registration, licensing of premises, and supply chain audits to ensure compliance with safety and quality standards.
Fairuz, however, said improvements were made only after initial issues were reported, including earlier difficulties in scanning hologram labels and complaints from users. He argued that despite these improvements, greater emphasis should now be placed on supporting local industry players.
He also pointed to remarks by Prime Minister Anwar Ibrahim, who had previously highlighted the importance of strengthening local manufacturing amid global economic uncertainty. Fairuz said government procurement should align with this direction and prioritise domestic companies.
He added that awarding contracts to firms relying entirely on imported security labels may not align with national economic goals and could raise concerns over supply chain security. He urged the government to review its approach and give greater priority to local manufacturers in security-related procurement.
