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
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
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
"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,"
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
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.