LSH Service Master Sdn Bhd Reaffirms Commitment for Operation, Management and Maintenance of Kuala Lumpur Tower, a government-owned National Asset

Kuala Lumpur, Tuesday, 1 April 2025 – LSH Service Master Sdn. Bhd. (“LSHSM”) (“LSHSM” or “the Concessionaire”) reaffirms its full commitment to delivering on the trust placed in it by the Government of Malaysia through a transparent and competitive selection process, for the operation, management and maintenance of Kuala Lumpur Tower.

Kuala Lumpur Tower remains a government-owned national asset. Contrary to any misinformation, it has not been sold. The concession awarded to LSHSM, effective 1 April 2025, is strictly for the operation, management, and maintenance of the tower, under a public-private partnership framework. For that purpose, the concession agreement was signed on 10 March 2025 whilst the lease agreement on 26 March 2025.

The appointment of LSHSM was the result of a Request for Proposal (RFP) process initiated by the Government in December 2023, and administered by the Public-Private Partnership Unit (UKAS), Prime Minister’s Department. The process was subsequently reviewed and approved by the Cabinet, and LSHSM has received the Letter of Intent as the successful bidder on 7 June 2024. A total of five qualified companies, including the previous operator Menara Kuala Lumpur Sdn. Bhd. (MKLSB), participated in the RFP exercise. LSHSM is a joint venture between LSH BEST Builders Sdn. Bhd. (70%) and Service Master (M) Sdn. Bhd. (30%).

As part of the transition, it is important to note that Menara Kuala Lumpur Sdn. Bhd. had, in December 2024, issued termination notices to its employees. In response to this, LSHSM proactively offered employment opportunities to the affected staff. We are pleased to share that approximately 85% of these employees have accepted our offer. Their employment under LSHSM commences on 1 April 2025, protecting the employees full pay and benefits, in line with the principle of “no less favourable” employment terms that we committed to the government.

The Ministry of Communications has also clarified that Menara Kuala Lumpur Sdn. Bhd. was formally aware of the transition date since signing its fifth interim agreement with the Government on 1 July 2024 for a 9 months’ period from 1 July 2024 until 31 March 2025. The Ministry has further assured that Kuala Lumpur Tower’s operations will continue uninterrupted, with the transition planned and coordinated to safeguard public interest.

“We are honoured by the trust placed in us by the Government to steward one of Malaysia’s most iconic landmarks.” remarked Khairil Faizal Othman, Chief Executive Officer of LSH Service Master Sdn. Bhd., also the Managing Director of Service Master (M) Sdn. Bhd., a 100% bumiputera-owned company with over 30 years' experience in facilities management. “At this juncture, our foremost concern is the wellbeing and livelihood of the employees after their termination by Menara Kuala Lumpur Sdn. Bhd., which are 99% bumiputera employees based on our latest records. As we navigate this transition—especially during the festive season—our three immediate priorities are clear:

• First, to ensure all committed employees continue to receive their rightful pay without disruption; and

• Second, to extend our fullest cooperation to the Government in facilitating a smooth and lawful handover in accordance with all applicable regulations; and

• Third, to safeguard the country’s image, especially as Kuala Lumpur Tower continues to welcome both foreign tourists and local visitors.”

“We hope all Malaysians will stay united in helping us to continue making this icon a remarkable jewel asset for Malaysia”

LSHSM will continue to act in full compliance with the concession terms and with the utmost respect for all legal processes. The Company looks to the Government’s continued guidance for a smooth and respectful handover and remains committed to supporting Malaysia’s efforts to elevate Kuala Lumpur Tower as a modern, visitor friendly, and vibrant public iconic landmark. Throughout this journey, LSHSM will uphold the highest standards of governance, transparency, and accountability in all that we do.

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