KUALA LUMPUR: Telekom Malaysia Bhd (TM) clarifies that it has in October 2021 decided not to renew its Menara Kuala Lumpur concession and has informed the government accordingly.

TM also clarified that subsequently in 2022, the selection process of the new concessionaire was taken up by the government upon which the group was informed on the appointed company to take over the shares of Menara Kuala Lumpur Sdn Bhd (MKLSB) and the concession.

TM landed in hot soup over alleged transfer of shares from its subsidiary MKLSB which manages Menara KL to a firm called Hydroshoppe Sdn Bhd.

According to the Companies Commission of Malaysia's records, Hydroshoppe reportedly is a company incorporated in 2008 with a RM1 million capital, and with general trading as its nature of business.

CCM records reportedly showed MKLSB's shareholding change on Oct 31, when TM transferred 10 million units of shares in MKLSB to Hydroshoppe.

Early this week, Communications and Digital Minister Fahmi Fadzil said the ministry had on Dec 14 given him a detailed briefing regarding the concession of Menara KL's management and that TM would on Jan 3 give him another briefing on this.

In its statement today, TM said the decision not to renew the concession was made after due consideration of the change in the business nature of Menara KL, from telecommunications services to tourism and hospitality.

"As part of its business transformation programme, TM is focusing its efforts and resources on strengthening its core business of telecommunications and technology," the group said today.

TM said Menara KL was owned by the government while the operations and maintenance of the tower was granted under a concession.

The group, via MKLSB, had undertaken the concession since 1996.

TM added that MKLSB would continue to operate the concession and ensure the continuity of Menara KL operations for the Malaysian public, including international visitors.

"Employees will remain employed with MKLSB under the new concessionaire for a minimum period of three years. This is to ensure their welfare is protected in this transition," it added.

On the alleged undisclosed filing to Bursa Malaysia over the transfer of MKLSB shares, TM said it had made the related announcement to the exchange in its third quarter (Q3) of 2022 financial results announcement.

"TM practices good governance and transparency in our business undertakings to preserve the interest of our customers and stakeholders. TM will provide our full cooperation and disclosures as required by the authorities.

"Building on our commitment to enable a Digital Malaysia, TM will continue to deliver the best telco and technology services for the community, businesses, government and industry," it added.

https://www.nst.com.my/business/2022/12/865348/tm-decides-against-renewing-menara-kl-concession-october-2021-government