[UPDATED] Menara KL, parent company's suit against government to proceed to trial

New Straits Times

15-07-2025

KUALA LUMPUR: Menara Kuala Lumpur Sdn Bhd (MKLSB) and its parent company, Hydroshoppe Sdn Bhd's RM1 billion lawsuit against the government over the termination of the Kuala Lumpur Tower (Menara KL) management agreement will proceed to full trial.
This came after High Court judge Roz Mawar Rozain dismissed the application by Communications Minister Datuk Fahmi Fadzil and the government to strike out the suit today.
Roz Mawar, in her ruling, said the case against Fahmi and the government should not be struck out at this stage as there are triable issues, particularly relating to the proposed agreement in 2022, that warrant a full hearing.
"Fahmi and the government gave five reasons to support their bid to strike out the suit.
"While I may agree with some of them, the court finds that the case should not be dismissed at this stage, especially on the 2022 agreement.
"This court cannot allow the striking out of the claims against the first (Fahmi) and second (the government) defendants, as this is not a clear and obvious case where the claim is plainly unsustainable.
"Therefore, I dismiss the first and second defendants' application to strike out the suit," she said.
Roz Mawar then fixed Nov 3 for the next case management.
During the same hearing, Roz Mawar also allowed the application by three companies named as defendants to strike out the suit.
According to Judge Roz Mawar, the pleadings filed against all three companies were weak, overly general, and insufficient for a claim that requires proof of specific elements.
"The plaintiffs failed to state specific facts to support their allegations concerning the defendants' knowledge, the manner of interference (whether direct or indirect) any specific intention to interfere, or any special damages suffered.
"The plaintiffs merely made bare allegations of dishonesty without stating specific supporting facts.
"The details provided were merely a repetition of general claims from an inducement of breach of contract allegation.
"The plaintiffs also failed to specify how the third to fifth defendants breached any duties related to the trust.
"Serious allegations such as dishonesty require serious statements supported by concrete facts, not just conclusions," she said.
In March 2024, Hydroshoppe and MKLSB filed a lawsuit against Fahmi, the government, LSH Service Master Sdn Bhd, LSH Best Builders Sdn Bhd, and Service Master (M) Sdn Bhd.
LSH Service Master is a joint venture between LSH Best Builders and Service Master, which was awarded the tower management concession, replacing Hydroshoppe and MKLSB.
Hydroshoppe and MKLSB filed the suit over the alleged wrongful termination of their agreement in November 2022, which included the extension of the company's concession period from 15 to 30 years.