KUALA LUMPUR: The acquisition of the concession involving the Kuala Lumpur Tower (KL Tower) will not affect the operations and workers at the world's tallest communication tower, according to the Communications Ministry.
The ministry, through its frequently asked questions (FAQs) on the concession for the management of the KL Tower, said that 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 informed that all existing employees at Menara KL, who are currently working with Menara Kuala Lumpur Sdn Bhd (MKLSB) have been assured by the government to continue to be offered jobs by the new management company, LSHSM, starting April 1, 2025.
"It is based on the principle of "no less favourable" and this has been included in the concession agreement between the government and LSHSM," according to the FAQ issued by the Ministry of Communications today.
On the question of why the government changed the KL Tower concession, the FAQ informed that 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," according to the FAQ.
In addition, the period of this new concession is announced for 20 years, starting tomorrow (1 April 2025).
According to the FAQ, the KL Tower has never been sold to any party and still remains owned by the Government of Malaysia.
"Only the management and maintenance of the tower is managed by a company appointed by the government through the request for proposal (RFP) notice process," according to the FAQ.
It also informed that five companies had submitted RFPs and MKLSB is one of them.
"The contract for the management and operation of KL Tower by MKLSB expires on March 31, 2025 through the 5th extended interim agreement.
"Starting April 1, 2025, Menara KL will be managed by a selected LSHSM company through a notice of proposal (RFP) process, which is a type of open tender," according to the FAQ.
Earlier, Hydroshoppe Sdn Bhd and Menara Kuala Lumpur Sdn Bhd issued a joint statement saying that operations at KL Tower would continue as usual on the second day of Hari Raya (April 1) despite an ongoing legal dispute over its management.
The two companies said any attempt to take over operations at KL Tower would be unlawful due to their ongoing suit pending in court against the award of a 20-year concession to manage the tower to a different company.- Bernama
