Costs

Pricing pressures on automotive parts suppliers have become more pronounced over the past year as our customers face competitive pressures on the pricing of their vehicles in the face of further liberalization of the automotive market in Malaysia and the region.

We have been actively promoting cost reduction programs to remain competitive, including the following measures:

Negotiating for lower prices from direct material suppliers
Reviewing the supplier base
Improve labour productivity and increase automation
Redesigning our products (e.g. reducing weight, raw materials used and or to use alternative materials)
Our business therefore focuses on higher value-added products and reducing the emphasis on purely pricing.

We believe the measures we have taken will help mitigate some of the sales price erosion that the industry is facing.

Subsidiaries & Associates