KOTA KINABALU: The Sabah Legislative Assembly has passed a comprehensive law to oversee the management of properties under subsidiary titles.
The Building Management Enactment 2026 covers all types of subsidiary title developments – residential, commercial and mixed – and will regulate them more comprehensively by introducing subsidiary management corporations (sub-MCs) for specific precincts in large-scale developments.
During tabling, Sabah Local Government and Housing Minister Datuk Mohd Ariffin Arif said the enactment provides for the establishment of a Commissioner of Building Management to oversee, monitor and enforce compliance as the current Land (Subsidiary Title) Enactment 1972 lacks a comprehensive framework for building management and no longer aligns with current development needs.
He said that according to the Lands and Surveys Department, 364 developments have applied to establish management corporations, involving 53,974 subsidiary titles.
However, he noted this represents less than 50% of all subsidiary title buildings in Sabah, meaning over 53,000 owners remain unregistered and management has not applied to set up management corporations.
The new enactment requires the formation of management corporations within 14 days of the issuance of the Certificate of Completion and Compliance (CCC) and management must be handed over to buyers within 15 months, said Ariffin.
"It requires stronger financial transparency where maintenance and sinking fund accounts must be audited by certified auditors and reported to buyers," he added.
He also said that it provides for establishment of a building management tribunal for faster, cost-effective dispute resolution accessible to the public.
"With its implementation, Sabah aims to establish a more efficient, transparent and sustainable building management ecosystem, ensuring that the benefits of development are shared fairly among the people," he said.
