KUALA LUMPUR: A new law aimed at tackling long-standing issues concerning poor property and building management is being considered, says Housing and Local Government Minister Nga Kor Ming (pic).
He said ineffective property management, especially in stratified developments, has significantly impacted property values across the country.
Nga shared that there are only 594 licensed firms serving 26,334 strata schemes or 2.9 million units of strata properties in Malaysia.
“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.
He said the shortage of licensed firms has led to poor service delivery for Joint Management Bodies (JMB) and Management Committees (MC).
It has also resulted in the rise of unlicensed and unqualified property managers, he added.
“Many strata property owners and tenants face hardship because of mismanagement by untrained, dishonest, or unqualified individuals.
“This has also led to a decline in property asset values and deteriorating living conditions,” he added.
Nga said the ministry is committed to protecting the interests of homebuyers, adding that it has engaged with industry associations and stakeholders to explore the creation of a dedicated act focused solely on property and building management.
Currently, property managers are regulated under Act 242 – the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, 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.
As of Feb 28, the task force on sick and abandoned private housing projects has successfully revived 1,016 projects worth RM98.96bil, involving 122,083 housing units.
“Many families are still paying for homes they cannot live in while also burdened with rental costs.
“Abandoned projects don’t just affect buyers.
“They cause neighbourhoods to deteriorate, reduce overall property values, raise safety concerns and impact entire communities,” he said.
