High Court Dismisses Claims Against LSH Capital Group in Kuala Lumpur Tower Lawsuit

Kuala Lumpur, Tuesday, 15 July 2025 – Lim Seong Hai Capital Berhad (“LSH Capital” or “the Group”) welcomes the High Court’s decision today to strike out the lawsuit filed against its related companies that are involved in the Kuala Lumpur Tower concession, LSH Service Master Sdn Bhd (“LSHSM”), LSH Best Builders Sdn Bhd (“LSHBB”), and Service Master (M) Sdn Bhd (“SMMSB”). LSHSM, being the joint venture company between LSHBB (70%) and SMMSB (30%), is the current concessionaire of the Kuala Lumpur Tower. LSHBB is a wholly owned subsidiary of LSH Capital.

The lawsuit was originally filed by Menara Kuala Lumpur Sdn Bhd (“MKLSB”) and its parent company Hydroshoppe Sdn Bhd (“Hydroshoppe”), arguing that there was a purported oral agreement entered into around August 2022 between MKLSB and/or Hydroshoppe and also wrongful termination of their concession and named the Government, Communications Minister Datuk Fahmi Fadzil, LSHSM, LSHBB, and SMMSB as defendants.

On 15 July 2025, High Court judge Roz Mawar Rozain ruled that the claims against the LSH entities failed to demonstrate the required specificity in fact and is materially deficient, especially in relation to causes of action of inducement of breach of contract, dishonest assistance and knowing receipt. The Court finds that Hydroshoppe and MKLSB claims were plainly and obviously unsustainable. As Hydroshoppe and MKLSB’s claims had failed to substantiate a reasonable cause of action against LSHSM, LSHBB and SMMSB, the court cannot permit deficient pleadings to proceed.

“We respect the Court’s findings and welcome the dismissal of the claims against LSH Capital. This decision is a clear endorsement of the legitimacy and professionalism of the Group and our joint venture partners have in participating in the Request for proposal (“RFP”) and accepting the award of the concession of Kuala Lumpur Tower concession. From our involvement since the advertisement was issued by the Government on the RFP, we have adhered to proper processes and transparent engagement with the Government. We believe the award of the concession was based on our demonstration of our operational capabilities. We remain committed to enhancing the value of Kuala Lumpur Tower as a national icon while upholding the public’s trust,” remarked Tan Sri Datuk Seri Lim Keng Cheng, Non-Executive Chairman of LSH Capital.

The outcome not only clears LSH Capital of the legal allegation but also affirms LSHSM’s integrity, legitimacy and role as the rightful concession holder for the operation, management and maintenance of the Kuala Lumpur Tower.

This reinforces the Group’s credibility and its strong track record in securing and delivering large-scale infrastructure and facility management projects, with commitment on integrity.

Since taking over the concession, the team has implemented proactive asset maintenance strategies, enhanced visitor experiences, ensured the continued safe operation and further build the reputation of one of Malaysia’s most recognisable and important landmarks. LSH Capital and LSHSM remain focused on transforming the national landmark into the No.1 destination for tourists, as well as attracting local community.

***End of Press Release***