Outgoing Kl Tower Operator Claims To Have 30 Year Concession

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Hydroshoppe managing director Abdul Hamid Shaikh Abdul Razak Shaikh speaking to reporters at the KL Tower main entrance tonight.
KUALA LUMPUR: The purportedly departing operator of Kuala Lumpur Tower claims that it has an existing 30-year concession to manage the iconic skyscraper.
Hydroshoppe Sdn Bhd, the parent company of Menara Kuala Lumpur Sdn Bhd (MKLSB), said the government, its public-private partnership unit, and the communications ministry initially agreed to award a 15-year concession effective Dec 31, 2024 until Dec 31, 2039.
Hydroshoppe’s managing director, Abdul Hamid Shaikh Abdul Razak Shaikh, however, did not disclose when this agreement was signed.
“During an official meeting on Nov 9, 2022, the public-private partnership unit, the communications ministry, the government, Hydroshoppe and MKLSB agreed to extend the concession period to 30 years until Dec 31, 2054,” Hamid said at a press conference at KL Tower here tonight.
The 15th general election was held on Nov 19, 2022.
Hamid also claimed that Hydroshoppe and MKLSB’s rumoured eviction was cancelled after several news reports on the matter.
Earlier, the two firms claimed they got wind that the police and Kuala Lumpur City Hall would forcefully evict them from KL Tower at midnight tonight.
MKLSB used to be a wholly owned subsidiary of Telekom Malaysia Bhd (TM) from 1996. TM then sold 100% of its shares in MKLSB to Hydroshoppe in December 2022.
Earlier, the communications ministry said MKLSB’s management contract expires today, while LSH Service Master Sdn Bhd was awarded a 20-year concession in May 2024, with a formal agreement signed last week.
The concession comes into effect tomorrow, April 1.
Hydroshoppe and MKLSB have filed a lawsuit to challenge the award of the concession, seeking RM20.13 million in losses and damages and for the concession to be transferred to them.
Lim Seong Hai Capital Bhd, the controlling parent company of LSH Service Master, has said that it would defend the suit and continue to fulfill its obligations under the 20-year agreement.
Hamid is standing trial on a charge of offering an annual RM500,000 bribe over 15 years to former communications and multimedia minister Annuar Musa in connection with the takeover of the KL Tower concession.
He is accused of offering the bribe amounting to RM7.5 million to one Tan Ser Lay for the benefit of Annuar to expedite the acquisition process.
At tonight’s press conference, Hamid said evicting Hydroshoppe and MKLSB would be an act of intimidation and abuse of power as the concession rights were still being disputed in court.
He also said that both HyrdoShoppe and MKLSB were Bumiputera companies, and that he was defending the rights of Bumiputera entrepreneurs.
He urged the government and the new concessionaires to respect the ongoing legal process in court.
“They should not be afraid to face us in court and should not use any deception (against us),” he said.
Hamid did not take any questions from the media on the advice of his lawyers. - FMT

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