KUALA LUMPUR, March 28 — Kuala Lumpur Tower concessionaire Lim Seong Hai Capital Bhd (LSH Capital) has insisted today that its appointment followed a legitimate government-led procurement process.
In a statement, LSH Capital denied any involvement in prior agreements between former concessionaire Hydroshoppe Sdn Bhd, its subsidiary Menara KL Sdn Bhd (MKLSB), and the federal government.
“The Concession was awarded through an open and transparent request for proposal (RFP) process issued by the Government of Malaysia in February 2024,” the firm said.
Its subsidiaries, LSH BEST Builders Sdn Bhd and Service Master (M) Sdn Bhd, submitted a proposal based on the RFP and received a Letter of Intent on 7 June 2024.
The joint venture, LSH Service Master Sdn Bhd, later signed the Concession Agreement on 10 March 2025 and the Lease Agreement on 26 March 2025.
LSH Capital maintains that the lawsuit filed against it is baseless, as its appointment was strictly the result of a proper government process.
Hydroshoppe and MKLSB, however, claim their 30-year concession extension was wrongfully terminated by the government in November 2022.
Malaysiakini reported that they are now asking the High Court to declare their 2022 agreement valid and binding. They are also seeking damages exceeding RM1 billion over the dispute.
Additionally, they want the court to recognise their right to the 30-year concession and allege the government committed a breach of trust.
The lawsuit also accuses LSH Service Master and its parent companies of inducing a breach of the 2022 concession agreement.
The case has drawn further scrutiny as Hydroshoppe’s acquisition of MKLSB was investigated by the Malaysian Anti-Corruption Commission (MACC).
Its director Abdul Hamid Shaikh Abdul Razak Shaikh was also charged last year with allegedly bribing former minister Tan Sri Annuar Musa.
MKLSB was previously a wholly-owned subsidiary of Telekom Malaysia Bhd (TM), and had designed and built the KL Tower.
However in 2022, TM sold MKLSB to Hydroshoppe, citing its shift of business focus. It said KL Tower remains a property of the Malaysian government.