Did govt award KL Tower concession because of minister's daughter, PN asks
Published: Aug 28, 2025 10:40 AM
Updated: 5:28 PM
The controversy over the takeover of Kuala Lumpur Tower (KL Tower) has resurfaced, with Gerik MP Fathul Huzir Ayob questioning whether the deal amounted to yet another case of cronyism.
Citing company records, the PN lawmaker questioned whether LSH Service Master Sdn Bhd (LSHSM) was awarded the concession because of a political connection.
“People are asking whether the company got the concession because of ties with top national leaders.
“Company records show that one director uses the same address as a senior government leader,” Fathul alleged during a press conference in Parliament yesterday.
While he did not name anyone, it is believed that he is referring to a director at LSH Best Builders Sdn Bhd - a company that owns 70 percent of LSHSM.
Gerik MP Fathul Huzir Ayob
The director is believed to be the daughter of a senior minister from East Malaysia.
Malaysiakini is attempting to get a response from the politician and LSH Best Builders.
The issue
LSHSM - a joint venture with Service Master (M) Sdn Bhd - was awarded the concession to manage the KL Tower in May last year after the government opened a request for proposal.
It replaced Menara Kuala Lumpur Sdn Bhd (MKLSB) - the original operator, which Hydroshoppe Sdn Bhd took over in late 2022. Hydroshoppe and MKLSB are suing the government.
KL Tower was originally operated by MKLSB, which at conception was fully owned by Telekom Malaysia Berhad (TM).
It had been the sole operator of KL Tower since 1996 under concession contracts from the government, which were renewed every 15 years.
However, in late 2022, TM sold all of its stake in MKLSB to Hydroshoppe Sdn Bhd for RM1 billion over the alleged wrongful termination of their concession.
Financial implications
Fathul said if the companies succeed, this could have serious financial implications for taxpayers.
The director is believed to be the daughter of a senior minister from East Malaysia.
Malaysiakini is attempting to get a response from the politician and LSH Best Builders.
The issue
LSHSM - a joint venture with Service Master (M) Sdn Bhd - was awarded the concession to manage the KL Tower in May last year after the government opened a request for proposal.
It replaced Menara Kuala Lumpur Sdn Bhd (MKLSB) - the original operator, which Hydroshoppe Sdn Bhd took over in late 2022. Hydroshoppe and MKLSB are suing the government.
KL Tower was originally operated by MKLSB, which at conception was fully owned by Telekom Malaysia Berhad (TM).
It had been the sole operator of KL Tower since 1996 under concession contracts from the government, which were renewed every 15 years.
However, in late 2022, TM sold all of its stake in MKLSB to Hydroshoppe Sdn Bhd for RM1 billion over the alleged wrongful termination of their concession.
Financial implications
Fathul said if the companies succeed, this could have serious financial implications for taxpayers.
“This case is still in court and could drag on. If the government is ordered to pay, the money will come from taxpayers - at a time when our economy is already under strain,” he said.
Fathul also cited a written reply from Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said, that bumiputera equity in the new concession had been reduced from 100 percent to 30 percent.
“This contradicts the national policy and the Bumiputera Economic Transformation Plan 2035. The impact is especially big in the Golden Triangle area of KL,” he stressed.
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PAS always nak kacau PMX saje
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