LSH Capital Reaffirms Business Continuity Amid Plaintiffs’ Appeal in Kuala Lumpur Tower Dispute

Last updated on August 23, 2025

Kuala Lumpur: Lim Seong Hai Capital Berhad (“LSH Capital” or “the Group”) confirms that Menara Kuala Lumpur Sdn Bhd and its parent company, Hydroshoppe Sdn Bhd (collectively, “the Plaintiffs”), have filed an appeal against the High Court’s 15 July 2025 ruling, which dismissed their claims against LSH Capital’s subsidiaries and related entities in the Kuala Lumpur Tower concession case.

On 15 July, the High Court struck out the Plaintiffs’ claims against LSH Service Master Sdn Bhd (“LSHSM”), LSH Best Builders Sdn Bhd (“LSHBB”), and Service Master (M) Sdn Bhd (“SMMSB”), citing insufficient and inadequately pleaded allegations of inducement of breach of contract, dishonest assistance, and knowing receipt. LSHSM is a joint venture between LSHBB (70%) and SMMSB (30%), and is the appointed concessionaire of Kuala Lumpur Tower.

Following the decision, only the Plaintiffs’ case against the Government and the Minister of Communications will proceed to trial. Separately, LSHSM, LSHBB, and SMMSB have filed a counterclaim against the Plaintiffs on 21 April 2025.

While respecting the Plaintiffs’ right to appeal, LSH Capital remains confident in Malaysia’s judicial process and the legitimacy of its position as the Kuala Lumpur Tower concessionaire. The Group reaffirms:

1. Legitimate Concession Award – LSHSM was granted the concession through a transparent Request for Proposal (RFP) process led by the Government of Malaysia’s Public-Private Partnership Unit.
2. Full Operational Authority – Under the Concession Agreement (10 March 2025) and Lease Agreement (26 March 2025), LSHSM has full authority to operate, manage, and maintain the tower for 20 years from 1 April 2025.
3. Commitment to Obligations – The Group remains fully dedicated to honouring all terms of the Concession Agreement.
4. Uninterrupted Operations – The Plaintiffs hold no written agreement with the Government to reclaim management rights, and all tower operations continue without disruption.

Since assuming possession on 19 April 2025 and reopening the tower on 26 April 2025, LSHSM has maintained uninterrupted operations, implementing upgrades to visitor amenities, enhancing safety and security, launching promotional initiatives, and planning asset enhancements to sustain the landmark’s iconic status.

“The High Court’s ruling confirms the legitimacy of our concession award. While the Plaintiffs have chosen to appeal, our operations remain unaffected, and our commitment to enhancing Kuala Lumpur Tower stands firm. We will continue delivering value to stakeholders and the nation,” said Tan Sri Datuk Seri Lim Keng Cheng, Non-Executive Chairman of LSH Capital.

LSH Capital assures stakeholders that Kuala Lumpur Tower will remain fully operational throughout the appeal process, with ongoing transparency, operational integrity, and a focus on long-term value creation.