[ UPDATE 29/12/2022 14:00 ] Telekom Malaysia responds to the KL Tower controversy. Here’s why TM sold Menara KL Sdn Bhd to Hydroshoppe Sdn Bhd.
Following reports that Telekom Malaysia (TM) has quietly sold its concession to manage KL Tower to an unknown company, Communications and Digital Minister Fahmi Fadzil said he is looking into the matter seriously. Some claimed that TM sold the ownership of the tower but the question is, who actually owns the iconic Kuala Lumpur landmark? Also, who is Hydroshoppe Sdn Bhd?
According to the statement released by the Ministry of Communications and Digital, KL Tower is managed by TM under its subsidiary Menara Kuala Lumpur Sdn Bhd. It was reported that the concession was sold to Hydroshoppe Sdn Bhd. Fahmi said that he received a briefing about the management concession for KL Tower on 14th December and he will receive another detailed briefing from TM on 3rd January 2023. He added that the current Menara KL management concession is currently in its third interim period until 31st December 2022 by Menara Kuala Lumpur Sdn Bhd.
Who actually owns KL Tower / Menara KL?
TM does not own KL Tower and it is only the company that manages the building. The 420.7m tall structure which is currently the 7th tallest tower in the world actually belongs to the government of Malaysia.
In 2011, it was reported that TM (via Menara Kuala Lumpur Sdn Bhd) signed a 10-year concession agreement with the government to operate, manage and maintain the tower, while the land that KL Tower sits on at Bukit Nanas comprises five lots of Federal Land. The report said MKLSB was awarded the concession by the government based on its track record of handling the tower operations.
KL Tower is reported as the first privatisation project of the government using the concept of build, operate and transfer (BOT) in 1994. The tower also serves as the broadcasting station for RTM’s television and FM-radio broadcasting as well as tracking services for the Marine, Meteorological and Traffic Control departments. Interestingly, it was also one of the official sites in Malaysia to observe the crescent moon to determine the start of Ramadhan.
Who is Hydroshoppe Sdn Bhd?
There’s very little info about the alleged company that has taken over the KL Tower management concession. A quick check with Companies Commission of Malaysia (SSM) reveals that Hydroshoppe Sdn Bhd is a General Trading company incorporated on 15th February 2008. The company is based in Shah Alam, Selangor with a total issued share capital of RM1,000,000.
The two listed directors are Abdul Hamid Shaikh Bin Abdul Razak Shaikh and Nazarina Binti Mohamed Nasir, with 500,000 shares each.
Former Communications and Multimedia Minister Tan Sri Annuar Musa has denied any involvement in the transfer of the KL Tower concession from TM to Hydroshoppe Sdn Bhd. He told New Straits Times that TM is a publicly listed company and was never under the ministry.