List Price Update 2024
List Price Update 2024 February 1, 2024
Dear Valued Customer,
We hope you and your family are safe and healthy in 2023.We would like to share some updates with you for 2024.
As we know it, the global environment has changed significantly with supply chain performance improving massively with raw material availability back and softening of transportation lead times and costs. However, some global factors remain to be a challenge especially the geopolitical conflicts, high inflation, high interest rates and weaking of Malaysian Ringgit vs other major currencies.
In the construction industry, we are seeing several key factors affecting the industry. China’s economic slowdown due to the property market downturn and softening from key trading partners causes economic that is heavily reliant on China trade and investment to suffer a disproportionally larger drag on activities. Additionally, the monetary policy stance remains elevated for most central banks, leading to higher borrowing costs and thus slower economic growth.
In Malaysia, although the economic landscape is improving with a projected of 4%, the country’s total trade, exports, imports, and trade surplus have all demonstrated a downward trend. Additionally, some construction materials such as softwood lumber, bricks, ready-mix concrete, cement are still at high levels according to the Producer Price Index.
We have reviewed thoroughly our cost structure to reduce the impact of the market situation, nevertheless we must adjust our prices by 1st Feb 2024 by +9% in average, given the above explanation. It is important for us to give you an early notice for your planning and budgeting purposes for new projects in the future.
Apart from continuing to provide high-quality services to our customers, we also need to improve the efficiency and productivity of our repair services, therefore the Minimum Quotation Value (MQV) will also increase to RM450. This helps to reduce the waiting time for customers to receive quotations from Hilti Repair Team. As announced by the Ministry of Finance in the recent Parliament, Malaysia will be increasing the Service Tax Rates from 6% to 8%. This would affect value streams in Supply Chain especially. Thus, we will be revising the Handling Charge policy to 3% across all sales channels effective 1st March 2024.
We understand this is a burden for our clients, however, we have chosen to remain committed to our partnership and therefore we will not pass the full impact to you as also in the past already.
Hilti will continue to monitor the economic climate and make necessary adjustments so that we continue to deliver on our promise of providing industry-leading products, services, and software to enhance the performance and productivity of your business.
Should you have any questions or need further information, please do not hesitate to contact your dedicated Hilti Account Manager or our Customer Service Hotline at 1-800-88-0985.
Thank you in advance for your understanding and look forward to our ongoing collaboration.
Hilti (Malaysia) Sdn. Bhd.