KUALA LUMPUR: The Housing and Local Government Ministry is considering a new law aimed at tackling long-standing issues related to poor property and building management.
Minister Nga Kor Ming (pic) said ineffective property management, especially in stratified developments, has significantly impacted property values across the country.
"Currently, there are only 594 licensed property management firms serving 26,334 strata schemes, or 2.91 million housing units.
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"This means, on average, each firm is managing 44 strata schemes or 4,898 units,” he said in his keynote address at the International Strata Symposium here on Tuesday (April 8).
He noted that the shortage of licensed firms has led to poor service delivery for joint management bodies (JMBs) and management committees (MCs), and has also resulted in the rise of unlicensed and unqualified property managers.
"This is a serious issue. Many strata property owners and tenants face hardship because of mismanagement by untrained, dishonest, or unqualified individuals. This has led to a decline in property asset values and deteriorating living conditions,” he added.
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Reaffirming the ministry’s commitment to protecting the interests of homebuyers, Nga said it has begun engaging with industry associations and stakeholders to explore a dedicated Act focused solely on property and building management.
"At present, property managers are regulated under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242), which also covers other professions.
"By introducing a standalone law, we hope to raise the standards of property management services, ensuring that maintenance fees paid by residents are properly managed and spent,” he said.
Nga also shared updates on the ministry’s efforts to tackle abandoned housing projects.
The Task Force on Sick and Abandoned Private Housing Projects has successfully revived 1,016 projects worth RM98.96bil, involving 122,083 housing units, from its establishment in December 2022 up to Feb 28, he said.
"Many families are still paying for homes they cannot live in while also burdened with rental costs.
"These abandoned projects don’t just affect buyers, they cause neighbourhoods to deteriorate, reduce overall property values, and raise safety concerns, impacting entire communities,” he said. – Bernama
