Lim Seong Hai Capital Berhad Clarifies Position on Kuala Lumpur Tower Concession Lawsuit

Kuala Lumpur, Friday, 28 March 2025 – Lim Seong Hai Capital Berhad (“LSH Capital” or “the Group”), wishes to address the recent legal action filed by Hydroshoppe Sdn. Bhd. and Menara Kuala Lumpur Sdn. Bhd. (“Outgoing Operators”) against several parties, including the Ministry of Communications, its Minister, the Government of Malaysia (“Government”), LSH Capital’s wholly owned subsidiary, LSH BEST Builders Sdn. Bhd. (“LSHBB”), its 70%-owned joint venture, LSH Service Master Sdn. Bhd. (“LSHSM”), and Service Master (M) Sdn. Bhd., in relation to the Kuala Lumpur Tower concession.

The lawsuit claims a pre-existing understanding regarding the operation, management, and maintenance of Kuala Lumpur Tower (“Concession”). LSH Capital confirms that it has been awarded the Concession via a transparent Request for Proposal (“RFP”) issued publicly by the Government in February 2024 through Unit Kerjasama Awam Swasta (“UKAS”), Prime Minister’s Department.

LSHSB, together with SMSB, submitted its proposal in response to the RFP after purchasing the official documentation. Following a competitive evaluation, a Letter of Intent was issued to LSHBB and SMSB on 7 June 2024, which was subsequently formalised through a duly signed and stamped Concession Agreement dated 10 March 2025 and a Lease Agreement dated 26 March 2025, with the effective date of the Concession set to begin on 1 April 2025.

LSH Capital clarifies that it was not privy to any prior arrangements, agreements, or discussions that may have occurred between the Plaintiffs and the Government. The participation in the Concession has been based solely on the merit of its submission and in full compliance with the terms of the Government’s RFP process.

“We want to emphasise that the Concession was awarded through an open and fair bidding process,” stated Tan Sri Datuk Seri Lim Kheng Cheng (“Tan Sri KC Lim”), Non-Executive Chairman of LSH Capital. “The Government issued an open call for RFP, inviting Malaysian companies to participate. LSH Capital's team attended the briefing, purchased the RFP documents, and submitted its proposal in full compliance with the requirements. Our selection was based on the strength of our proposal submission and proven capabilities.”

Regarding LSH Capital’s business practices, the company adheres to the highest standards of governance and integrity in all its operations. “We believe that the claim against us is without merit and cannot be established. Our appointment was based on a legitimate government-led procurement process. We were not privy to any purported arrangements made between the Outgoing Operator and the Government,” added Tan Sri KC Lim.

LSH Capital anticipates no material financial or operational impact from the lawsuit for the financial year ending 30 September 2025, aside from legal costs. LSH Capital has engaged legal counsel and is preparing a full defence against the claims. In the meantime, LSH Capital remains committed to fulfilling its obligations under the Concession, beginning 1 April 2025.

“LSH Capital remains committed to maintaining transparency, professionalism, and contributing to the nation's development. LSHSM was awarded the Kuala Lumpur Tower concession through a fair and open RFP process. We will vigorously defend our position while staying focused on delivering excellence,” concluded Tan Sri KC Lim.

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