Bumiputera Company Ousted, Chinese Company Installed The Story Behind KL Tower

Once again, a Bumiputera company is used, discarded, and replaced. This time, the victim is none other than the operator of one of Malaysia’s most iconic landmarks, KL Tower.

This is the real story.

When Telekom Malaysia wanted out of MKLSB, the operator of KL Tower, Kementerian Komunikasi dan Multimedia (KKM) was desperate for a solution. MKLSB was bleeding. KKM officially invited Hydroshoppe Sdn Bhd to step in as a white knight, take over MKLSB, and stabilize KL Tower. The government had invited five interested companies to participate, and Hydroshoppe gave the best offer.

The deal was straightforward. Hydroshoppe would absorb MKLSB, including its RM314 million arbitration baggage, maintain the tower, and in return, be given a fresh long-term concession. Hydroshoppe agreed, knowing full well the risk but trusting KKM’s word.

Hydroshoppe kept the tower alive, spending more than RM1.5 million every month without fail. They completed all pending tasks, maintained operations, and delivered the VMlab work to ensure uninterrupted operations. They did their part. They did exactly what was asked under the assurance that the promised concession would follow.

Then came GE15.
A new government took office, and suddenly, Hydroshoppe’s promised concession vanished.

Instead, KKM under Fahmi Fadzil handed the KL Tower concession to Lim Seong Hai (Malaysia) Sdn Bhd, a Chinese company. To sugarcoat it, an Ali Baba arrangement was made to suddenly introduce a “Bumiputera face” for the deal just enough to satisfy the 30% Bumiputera requirement. A convenient move so Lim Seong Hai could claim the concession was partly Bumiputera.

Hydroshoppe, the very company that saved KL Tower from collapse, was left stranded with nothing but mounting debts, unpaid dues, and no concession.

Worse still, KKM and the new concessionaire refused to pay Hydroshoppe the millions already spent to keep the tower running. MKLSB’s employees were also bullied, forced to accept new contracts under unfavourable terms, clearly violating labour regulations.

Hydroshoppe was even prepared to vacate peacefully, asking only for the settlement of outstanding payments and fair treatment of employees. Instead, KKM and the new concessionaire chose to stonewall, delay, and frustrate Hydroshoppe, hoping to force the company into financial collapse, allowing them to seize the tower for next to nothing.

Today, Hydroshoppe has no choice but to sue for breach of promises and representations.

And if that wasn’t enough, last night there was even a plan for a forcible takeover using PDRM and DBKL, despite a pending court case. But this is the Malaysia we live in today. Where the law is an inconvenience, not an obligation.

This is no longer about business.
It is about integrity.

A Bumiputera company was called in to save a national asset, performed its duty, and was then stabbed in the back.

Thrown out.
Replaced without explanation.

And this is only Part 1.

Stay tuned.

Admin
Malaysia Today