Civic groups have expressed disappointment after the cabinet yesterday approved in principle a bill regulating government procurement.
The bill, proposed by the Commerce Ministry, is aimed at enhancing the transparency of state procurement and preventing corruption.
But the activists are concerned the bill could enable drug company giants to dominate the local market.
"The bill's endorsement is very disappointing," said Kannikar Kijtiwatchakul, FTA Watch coordinator.
"The bill was not put through a public hearing. Even the Public Health Ministry did not get a chance to make any comments despite the fact the law, if effective, will have a great impact on the public health sector."
Ms Kannikar said the bill exempts procurement of military weapons or government-to-government service procurements from its provisions, despite the opportunities for corruption amid such activities.
The bill also allows foreign and large companies to join the bidding process for procurements worth 200,000 baht or more, which in FTA Watch's view should be reserved for Thai small and medium-size enterprises, she said.
Siriporn Jitprasitsiri, of the Rural Pharmacists Association, also expressed concern the bill could hinder the competitiveness of the Government's Pharmaceutical Organisation (GPO), the main medicine supplier for state hospitals.
The GPO, which produces various medicines and sells them to hospitals at cheap prices, currently gets priority for government medicine procurement and does not compete with private firms.
It has the ability to manufacture affordable drugs and undertake research to make medicine more accessible, consumer groups say.
"This bill will no longer give such a privilege to the GPO. It's likely big drug firms will take over market shares from the GPO and possibly have a monopoly over the market," said Ms Siriporn.
After cabinet endorsement, the bill will be submitted to the Council of State for consideration, before being sent to the National Legislative Assembly.