KUALA LUMPUR, April 1 — The Communications Ministry has stressed that the KL Tower is owned by the government and the acquisition of the concession only involves changes in management and operations, which was implemented through a request for proposal (RFP).
The ministry said in a statement today that the RFP is an open tender for a public-private partnership project in line with the decision of the Cabinet.
“For this purpose, the Public-Private Partnership Unit, Prime Minister’s Department has implemented the RFP process, and, subsequently, the Cabinet has certified a bidder as successful based on the evaluation of the RFP. The successful bidder was announced by the government on May 29, 2024,” the statement said.
According to the statement, the Communications Ministry is looking into the latest developments following the issue of the acquisition of the KL Tower concession under an agreement signed by the government.
In addition, it also said the ministry took note of the writ of summons and injunction application filed by Menara Kuala Lumpur Sdn Bhd (MKLSB) following the appointment of this new concessionaire.
“The government through this ministry will ensure any action to be taken in the future is in line with the legal process. In this regard, the ministry requests all parties provide space for this legal process to run smoothly,” the statement said.
All parties involved, including the public, are also advised to not issue any statements or actions that could interfere with the ongoing legal process.
“The Communications Ministry is committed to good governance and will ensure this matter is dealt with appropriately,” the statement said.
The ministry added that the deal will not affect the operations and workers at KL Tower.
The ministry, through its frequently asked questions (FAQs) on the concession for the management of the KL Tower, said negotiations with the new concessionaire LSH Service Master Sdn Bhd (LSHSM) have outlined terms that do not affect the KL Tower’s operations which will run as usual.
The FAQ also said existing employees at KL Tower, who are working with MKLSB have been assured by the government that they will be offered jobs by the new management company, LSHSM, from today.
“It is based on the principle of ‘no less favourable’ and this has been included in the concession agreement between the government and LSHSM,” showed the FAQ issued by the Communications Ministry today.
On the question of why the government changed the KL Tower concession, the FAQ said it was because the existing concession period had expired.
“Most concessions are given for a certain period of time, for example for a period of 10, 15, or 30 years, when the concession period ends, the government has to reopen the offer so that other companies have the opportunity to compete. This ensures transparency and avoids prolonged monopolies by one party,” said the FAQ.
The period of this new concession was announced for 20 years, starting today.
— Bernama
