Yes, the evaporator's (cooling coil's) drain hose.

That was the first thing we checked. It seems to be
draining the water properly. I always look under the car
to see if it is doing so.

However, if the drain piping where this hose is connected
gets blocked over time with dirt, then the water will not
drain properly, will collect at the bottom of the coil's box
and pipings, and drop onto the floor.

So that was why the aircon man, Ah Tee, disconnected the
hose, placed his airgun into the pipe and blasted compressed
air into it to try to clear off any dirt blocking it.

I went to his place again this evening, and he did it one more time.
It seemed to help, but there is still a little water dropping onto the
floor, indicating that the evaporator (cooling coil) needed to be taken
out to be flushed. However, that would cost $100 ++, so Ah Tee told
me if the leak was minor, leave it alone for the moment.

He also said it was not a good idea to dismantle the cooling coil
to flush it, since that might caused more problems later on.
" THERE IS A CHANCE YOU CAN CLEAR THE OBSTRUCTION BY
BLOWING BACKWARD THRU THE OPEN END OF THE TUBE. "
http://wiki.answers.com/Q/Why_does_water_d...nditioner_is_on

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Added on April 27, 2011, 1:27 am
True, I have also heard that the Iswara's cooling coil is
not very durable. Usually made by APM.

Happened to one of my friend's Iswara too years ago,
"burst", and he spent $300 to replace it.

These serpenting evaporators or cooling coils are not very
durable anyway, due to the flat, thin aluminium piping.
Yes, the expansion valve can also give way after a few years.
Ah Tee checked mine and it still appeared to be working properly.

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Added on April 27, 2011, 1:31 am
Thanks, I wll try and check that shop out.

Wow, five years since last service, that is quite a long time.
They must have done a good job.

There is also a "Central Car Aircon Service" at Jalan SS 2/24,
been there for years. Not sure if that is a branch. Always seems
to be packed with big, flashy cars like Mercedeses/BMWs waiting
for servicing, everytime I drive past.