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.

“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. –  Focus Malaysia


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