KUALA LUMPUR (April 1): Kuala Lumpur Tower concessionaire Lim Seong Hai Capital Bhd (KL:LSH) said its unit LSH Service Master Sdn Bhd (LSHSM) has on Tuesday officially assumed the operation, management, and maintenance of the city’s landmark, which it said remains fully owned by the Malaysian government.

“[The] Kuala Lumpur Tower remains a government-owned national asset. Contrary to any misinformation, it has not been sold. The concession awarded to LSHSM, effective 1 April 2025, is strictly for the operation, management, and maintenance of the tower, under a public-private partnership framework,” said LSHSM chief executive officer Khairil Faizal Othman in a statement, noting that the concession agreement was signed on March 10, 2025 and the lease agreement on March 26, 2025.

LSHSM is committed to enhancing KL Tower’s global appeal as a modern and visitor-friendly destination, he added.

Last month, LSH and the Federal Lands Commissioner formalised a 20-year concession and lease agreement until end-March 2045, to manage, operate and maintain the tower.

LSHSM, a 70:30 venture between LSH BEST Builders Sdn Bhd and Service Master (M) Sdn Bhd, received a letter of intent in June 2024, after outbidding four other qualified firms, including former operator Menara Kuala Lumpur Sdn Bhd (MKLSB), according to the LSHSM statement.

“We are honoured by the trust placed in us by the government to steward one of Malaysia’s most iconic landmarks,” said Khairil Faizal, who is also Service Master’s managing director.

In the same statement, Khairil said the Ministry of Communications confirmed that operations at KL Tower will continue without disruption, and had noted that MKLSB was officially informed of the transition date since signing the fifth interim agreement with the government on July 1, 2024, for a nine-month period from July 1, 2024 to March 31, 2025.

To ensure continuity and workforce stability, LSHSM said it has offered employment to all MKLSB staff affected by the transition, noting that 99% of the employees are Bumiputera.

Approximately 85% have accepted LSHSM’s offer, with salaries and benefits maintained at existing levels, in line with the principle of “no less favourable” employment terms agreed with the government, the statement read.

LSH had previously said that the lawsuit filed against it is baseless, as its appointment followed the completion of a competitive bid done by the Prime Minister’s Department Public-Private Partnership Unit (UKAS) in December 2023.

MKLSB, which designed and built the KL Tower, is currently owned by Hydroshoppe Sdn Bhd, which bought the company from Telekom Malaysia Bhd in 2022. The deal came under the spotlight after Hydroshoppe managing director Abdul Hamid Shaikh Abdul Razak Shaikh pleaded not guilty and claimed trial to charges of offering RM500,000 per year for 15 years to former communications minister Tan Sri Annuar Musa between July and August 2022. 

Abdul Hamid had reportedly claimed that Hydroshoppe has a 30-year concession to manage the tower through end-2039, plus an extension until end-2054. Hydroshoppe and MKLSB claims their concession was wrongfully terminated by the government in November 2022.