KUALA LUMPUR - In line with the new 1999 Budget measure of abolishing the excise duty on locally manufactured air-conditioners, OYL Industries Bhd's wholly owned subsidiary and sole distributor of YORK Air-Conditioner, Group Associated (C&L) Sdn Bhd (GA) is lowering its air-conditioner's price with immediate effect.

We strongly support the 1999 Budget to remove the excise duty. It is a timely action to promote locally manufactured goods, which is also to support government's call of "Buy Malaysia".

"We believe that by lowering our pricing, the public savings will definitely be boosted up, and the consumers could also enjoy high quality of locally-made air-conditioner at a cheaper price," said the general manager of GA, Encik Lee Kee Nian.

In line with the government's business friendly budget, we have decided to be proactive by being the first to cut price on our product. Although by implementing this new pricing strategy, we would make some losses because of the excise duty has already been paid on all of our existing floor stocks. However, we find that this is an opportune move, as we want to pass the savings immediately to our consumers and be of added value to them," he said.

"The new pricing will, nevertheless, only apply for immediate retail sales and projects which are confirmed in the month of November onwards," Lee added.

The air-conditioner industry has experienced an estimated 30 per cent to 50 per cent drop in sales for the past four months.

In spite of that, Lee is optimistic of the local air-conditioner market. He forecasts sales for the YORK Air-Conditioners with this price strategy will go up by 20 per cent in 1999 compared to this year's sales.

"There is a new sense of confidence in the country, with the government's economic recovery measures, lower interest rates and more projects being activated again. All these will, in turn, stimulate the current market and create a higher demand for air-conditioner," said Lee.

With the introduction of exchange control measures, the 1999 Budget and other fiscal, adjustments implemented by the government, GA foresees 1999 to be a year of recovery.

"At GA, we always have our customers foremost in mind, and our efforts are to continually innovate on our products to bring the most affordable and quality products to them. For example, we have upgraded our after sales service in Klang Valley by opening from 9 a.m. to 9 p.m., and we also launching the latest state-of-the-art wall mounted air-conditioner (1.5hp) this month."

'Furthermore, we are increasing the number of service centres, branches and mobile service vans so that we can service our customers faster and more efficiently," said Lee.

"Presently, we are also upgrading our IT support in our branches and service centres. This move would effectively meet the needs of our dealers and customers, meeting the challenge of the Information Technology Age. In short, we are also constantly looking into more avenues to pass on more privileges and savings to our customers," said Lee.

"The abolishment of the excise duty on locally manufactured air-conditioners will definitely increase the competitiveness of 'Made in Malaysia' products in the market, thus strengthening the position of YORK Air Conditioner.

In view of the implementation of Asean Free Trade Area (AFTA), GA believes that this government's measure is very timely and essential, and would indeed make YORK Air-Conditioner more competitive in the market as compared with air-conditioners imported from other Asean countries," Lee added.

To ensure high quality products, OYL emphasises heavily on R&D. It has invested RM 20 million in a new research and development centre featuring 15 test laboratories, which include two acoustic research laboratories. The R&D centre is the most sophisticated of its kind in Southeast Asia.

Lee stressed the importance of research and development activities for YORK Air-Conditioners as air-conditioners need continuously upgrading, innovative development of new technologies in response to changing consumer needs and tastes.

"The range of YORK Air-Conditioners are of the highest quality and recognised worldwide. Moreover we are the first locally manufactured air-conditioner manufacturer to be accorded the ISO 9002 certification and the only air-conditioner that is patented with the innovative Built-In-Starter technology," Lee added.