TM did not renew the Menara KL concession to strengthen its core business

PETALING JAYA: Telekom Malaysia Bhd. (TM) explained that the concentration of efforts and resources to strengthen the core business made the company decide not to renew the operating and maintenance concession of Menara Kuala Lumpur (Menara KL).

It follows the viral issue regarding the sale of Menara KL’s management shares to other companies whose capabilities are doubtful.

TM in a statement informed that Menara KL is owned by the government with operation and maintenance given to concessionaires.

According to the company, TM through its wholly owned subsidiary Menara Kuala Lumpur Sdn. Bhd (MKLSB) has implemented the concession since 1996.

However, the company has decided not to renew the Menara KL concession in October 2021 and has informed the government of the matter.

“As part of the business transformation program, TM is focusing its efforts and resources on strengthening its core business, which is telecommunications and technology.

“After due consideration regarding the change in the nature of Menara KL’s business from telecommunication services to tourism and hospitality, TM has decided not to renew the concession in October 2021,” he said in a statement.

Commenting further, TM informed that the selection process for the new concession company has been taken over by the government with TM informed about the company appointed to take over MKLSB shares and Menara KL concession.

He said, MKLSB should continue to operate concessions and ensure the continuity of operations of Menara KL for the public including international tourists.

“Employees will remain working with MKLSB under the new concession company for a minimum of three years. This is to ensure their welfare is preserved in this transition.

“In the third quarter 2022 financial announcement to Bursa Malaysia, reference was made in the subsequent changes to the shareholding in MKLSB.

“TM practices good governance and transparency in our business endeavors to safeguard the interests of customers and stakeholders.

“TM will also provide our full cooperation and disclosure as required by the authorities,” he said.

The issue of the management takeover of Menara KL went viral on social media when people questioned the decision of Telekom Malaysia (TM) through its subsidiary, Menara Kuala Lumpur Sdn Bhd (MKLSB) to transfer their full ownership to Hydroshoppe Sdn Bhd last October.

A Twitter account known as @FreeMsian claimed that Menara KL which generated income of RM66 million in 2019 with a net profit of RM25 million was a ‘cash cow’ and that the transfer of shares was not disclosed to the public.

It is understood that the transfer of all 10 million MKLSB shares took place on 31 October when Tan Sri Annuar Musa became Minister of Communications and Multimedia.

Annuar however insisted that it had nothing to do with the transfer of TM shares through MKLSB to the company in question.

Communications and Digital Minister, Fahmi Fadzil confirmed that the shares of the Kuala Lumpur Tower management company have been sold by TM to a company that is about to close called Hydroshoppe Sdn Bhd. – MESSENGER

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