Madani gov’t accused of transferring Bumi ownership of Menara KL to non-Bumi firm via “forced eviction”
LIKE it or not, the ‘stand-off’ between the former operator of Kuala Lumpur (KL) Tower and ACE Market-listed Lim Seong Hai Capital Bhd (LSH Capital) following the latter’s appointment as the new concessionaire of landmark Menara KL has been politicised with the opposition faction playing the race card.
This follows a sob story by pro-opposition political activist and blogger Ratu Naga late last night (March 31) that “another Bumiputera asset is expected to change hands with the company that previously operated the KL Tower for over 30 years set to be evicted”.
For the uninitiated, LSH Capital via its 70%-owned unit LSH Service Master Sdn Bhd has secured a 20-year concession in early March to operate and maintain KL Tower and its surrounding areas effective April 1, 2025.
“The KL Tower is not just another landmark. It was built on a historic site which was once a stronghold during the Selangor Civil War,” penned Ratu Naga whose real name is Syarul Ema Rena Abu Samah on her Facebook page.
Menara Kuala Lumpur: Milik Bumiputera Bakal Bertukar Tangan?
Malam ini, satu lagi aset Bumiputera dijangka berpindah tangan. Syarikat yang telah mengendalikan Menara Kuala Lumpur selama lebih 30 tahun bakal diusir, dan konsesi menara itu dikatakan akan diserahkan kepada syarikat bukan Bumiputera, Lim Seong Hai Bhd.
Menara Kuala Lumpur bukan sekadar mercu tanda biasa. Ia dibina di lokasi bersejarah, yang suatu ketika dahulu menjadi kubu pertahanan dalam Perang Saudara Selangor...
See more“A symbol of national pride, the tower has been managed by a Bumiputera company since it was officially opened by Tun Dr. Mahathir Mohamad on Oct 1, 1996. Hence, the question as to why the concession need to be transferred to a non-Bumiputera entity?
“Previously, we’ve witnessed how Kampung Baru is increasingly under threat. Now, the KL Tower is also being targeted. Is this a sign that Bumiputera strategic assets are being eroded one by one?
“Are our leaders truly unaware of the implications of this decision or are they choosing not to care? The people deserve answers.”
LSH caught unaware
For context, Ratu Naga’s social media post somehow coincided with a late night media conference by Menara Kuala Lumpur Sdn Bhd (MKLSB) managing director Datuk Abdul Hamid Shaikh Abdul Razak Shaikh who regretted “the attempted forced eviction on the first night of Syawal” as “cruel and in violation of the legal process”.
For context, a lawsuit has recently been filed by MKLSB and its parent Hydroshoppe Sdn Bhd against LSH Capital’s wholly-owned subsidiary LSH BEST Builders Sdn Bhd and its 70%-owned unit LSH Service Master Sdn Bhd, the Communications Minister, the Communications Ministry and the government for breaches to a contract formed on Aug 1, 2022.
The plaintiffs want the concession to be transferred to them and for the defendants to pay them RM20.13 mil in loss and damages – calculated at an annual interest rate of 5% – as well as general damages to be assessed.
In its defence, LSH Capital claimed that its appointment was based on a legitimate government-led procurement process. “We are not privy to any purported arrangements made between the outgoing operator and the government,” it pointed out in a statement last Friday (March 28).
The government had in May 2024 awarded he KL Tower concession to LSH Service Master following a tender evaluation by the government and the Public Private Partnership Unit (UKAS).
According to Communications Minister Datuk Fahmi Fadzil at the time, the decision was made after reviewing tenders and proposals submitted through a request for proposal (RFP) process.
A government-owned asset, the KL Tower has been under scrutiny since 2022 when the Malaysian Anti-Corruption Commission (MACC) launched an investigation into alleged irregularities surrounding the sale of MKLSB – then a subsidiary of Telekom Malaysia Bhd (TM) – to Hydroshoppe in October 2022.
MKLSB was managing the tower until TM in October 2021 decided not to renew the concession, citing the tower’s shift from telecommunications services to a tourism and hospitality-focused operation.
Subsequently, Abdul Hamid who is also the Hydroshoppe managing director was charged in April 2023 with offering RM500,000 a year for 15 years to then-communications and multimedia minister Tan Sri Annuar Musa to fast-track the takeover of the KL Tower concession by Hydroshoppe.
They pleaded not guilty to the charge. – April 1, 2025
The Building owner is and remains Kerajaan Malaysia .
ReplyDeleteThe conssesionaire, which is a long term -contract, but nevertheless a non-permanent contract, to manage and run the building and retail outlets, which is the ones being replaced.
Where is there a principle that it must be one company forever ?
The pink elephant that no one mentioned is the revolving restaurant sited on the top of the Menara KL.
ReplyDeleteWhen the tower was launched by that mamak, the restaurant was operated by azman hashim. The restaurant went into tailspin due to poor operation & marketing methodology despite its ideal location for oversea tourist traffics.
The restaurant business was then passed into the hand of a Chinese M'sian who owned Asian Kitchen (M) Sdn Bhd (AKSB) & Atmosphere 360 dan Café 360 were redesiged & launched with renewed concentration on Chinese tourists. Both Atmosphere 360 dan Café 360 were a glaring success with the new brandings.
With that success, Abdul Hamid, the MD of MKLSB then formed Hydroshoppe & played undertable trick with the then minister of telecommunication to force buy MKLSB from TM in 2022. He then kicked Asian Kitchen (M) Sdn Bhd out by claiming unfulfillment of lease contract. The new madani govt retracked the Hydroshoppe sale contract & a new open contract competition was opened. That's how LSH group comes into picture.
The catch is always the profit generated by that revolving restaurant as proven by Asian Kitchen. Hydroshoppe has zilch restaurant or tourist leisure business experience. Abdul Hamid just want to play that ketuanan freak's famous rentseeking game after seeing the success of Asian Kitchen.