“LSH Service Master assumes KL Tower operations under a 20-year concession, ensuring seamless management while reaffirming government ownership.“
Pahang, 02nd Apr 2025, 01.33pm – Lim Seong Hai Capital Bhd (LSH) has officially assumed the operation, management, and maintenance of Kuala Lumpur Tower (KL Tower) through its subsidiary, LSH Service Master Sdn Bhd (LSHSM). The company emphasized that KL Tower remains fully owned by the Malaysian government.
In a statement on Tuesday, LSHSM chief executive officer Khairil Faizal Othman clarified that the landmark has not been sold, addressing misinformation. “KL Tower remains a government-owned national asset. The concession, effective April 1, 2025, is strictly for operations, management, and maintenance under a public-private partnership framework,” he said. The concession agreement was signed on March 10, 2025, while the lease agreement was finalized on March 26, 2025.
LSHSM aims to enhance KL Tower’s global appeal by modernizing visitor experiences while ensuring smooth operations. The company secured a 20-year concession and lease agreement with the Federal Lands Commissioner, running until March 2045.
Competitive Bidding Process
LSHSM, a 70:30 joint venture between LSH BEST Builders Sdn Bhd and Service Master (M) Sdn Bhd, received a letter of intent in June 2024 after outbidding four other firms, including former operator Menara Kuala Lumpur Sdn Bhd (MKLSB).
“We are honored by the government’s trust in us to manage one of Malaysia’s most iconic landmarks,” said Khairil, who is also managing director of Service Master. He assured that KL Tower’s operations would continue seamlessly under the Ministry of Communications’ oversight. MKLSB was officially informed of the transition after signing an interim agreement with the government in July 2024, which lasted until March 31, 2025.
Workforce Continuity and Legal Challenges
To maintain workforce stability, LSHSM has offered employment to all MKLSB staff affected by the transition. The company noted that 99% of the employees are Bumiputera, and approximately 85% have accepted LSHSM’s offer, with salaries and benefits preserved under the “no less favorable” employment terms agreed upon with the government.
LSH previously dismissed legal action against it as baseless, stating that its appointment resulted from a competitive bidding process conducted by the Prime Minister’s Department’s Public-Private Partnership Unit (UKAS) in December 2023.
Previous Controversy
KL Tower’s management transition has faced scrutiny, particularly regarding its former concessionaire. MKLSB, which designed and built the tower, was acquired by Hydroshoppe Sdn Bhd from Telekom Malaysia Bhd in 2022. The deal came under the spotlight when Hydroshoppe’s managing director, Abdul Hamid Shaikh Abdul Razak Shaikh, was charged with offering RM500,000 per year for 15 years to former communications minister Tan Sri Annuar Musa in 2022.
Abdul Hamid has claimed that Hydroshoppe holds a 30-year concession to manage KL Tower until 2039, with an extension option until 2054. Hydroshoppe and MKLSB have challenged the government’s termination of their concession in November 2022.
Despite these disputes, LSHSM remains focused on improving KL Tower’s standing as a premier attraction while ensuring uninterrupted operations under the new concession agreement.
