Action on KL Tower will be in accordance with law, says ministry

Summary

• The Communications Ministry assured that all actions regarding KL Tower’s concession dispute will follow legal processes and urges all parties to avoid interference. It affirms that the takeover only involves a change in management.

• Former operator MKLSB fears eviction despite ongoing legal proceedings and has sued the government for RM1 billion, claiming its 30-year concession obtained in 2022 is still valid.

The Communications Ministry has affirmed that any action regarding Kuala Lumpur Tower will be done in accordance with the law, amid a legal dispute over its concession agreement.

“As such, the ministry urges all parties to give space for the legal process to proceed smoothly.

“All parties involved including members of the public are advised not to make any statement or action that could interfere with ongoing legal proceedings,” it said in a statement today.

The statement came less than an hour before KL Tower’s former operator Menara Kuala Lumpur Sdn Bhd (MKLSB) and its parent company Hydroshoppe Sdn Bhd are due to hold a press conference at 11pm.

The two companies have expressed concern that they would be forcibly evicted at the stroke of midnight tonight, despite ongoing legal proceedings, to allow the new concessionaire LSH Service Master Sdn Bhd (LSHSM) to take over.

Govt-owned

The Communications Ministry emphasised that KL Tower is owned by the government, and the takeover only involves a change in its management and operations.

This had been done through a request for proposal (RFP) for a public-private partnership. The RFP was an open tender handled by the Prime Minister’s Department’s Public-Private Partnership Unit, leading to the selection of the winning bidder on May 29, 2024.

The ministry said it is monitoring ongoing developments regarding the concession takeover, and is also aware of the lawsuit and application for an injunction filed by MKLSB.


It said it is committed to good governance and will ensure the matter is handled appropriately.

Letter circulation

Earlier, a letter purportedly from the Communications Ministry to the Dang Wangi police was circulated online.

The letter purportedly affirms that KL Tower is owned by the ministry, and LSHSM would take over the concession effective April 1 as MKLSB’s management period ends today.

The ministry has yet to respond to Malaysiakini’s requests to comment on the letter’s veracity.

Nevertheless, Hydroshoppe and MKLSB called a late-night press conference tonight over concerns that the Kuala Lumpur City Hall and the police would move to evict them tonight, in what they decried as an “abuse of power” and a “challenge to the court’s authority”.

Billion ringgit lawsuit

Hydroshoppe via its subsidiary MKLSB were engaged to operate the iconic landmark in 2022 but claimed the government had unlawfully terminated the agreement in November 2022.

The two companies sued the government and the new concessionaire for RM1 billion and sought a court declaration that the 2022 agreement is still valid and binding.


It also wants the court to affirm that they are still entitled to a 30-year concession from Dec 31, 2022, and the government had committed a breach of trust by awarding it to another entity.

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