Jessica Leong · Registered Estate Agent E3208 · 010-464 6088PropNex Realty Sdn Bhd E (1) 1800/1 · Office 03-2161 8608
Call

Strata Management Act Changes and a New Building Managers Act: What KL and Selangor Condo, Serviced Apartment and SOHO Owners Should Know

KPKT is reviewing the Strata Management Act 2013 and plans a Building Managers Act, but neither has been tabled in Parliament. Here is what has been proposed, what is still unknown, and the rules that protect strata owners today.

Originally published on Medium: read it on Medium

Illustration of three generic strata towers behind a balance scale, with an accounts binder, a sinking fund coin jar, building keys, a lift button panel, a gavel, a checklist and a toolbox in the foreground

If you own a condo, a serviced apartment or a SOHO unit in Kuala Lumpur or Selangor, the rules on how your building is run are under review. The Ministry of Housing and Local Government (KPKT) is reviewing the Strata Management Act 2013 (Act 757), the law behind joint management bodies (JMBs), management corporations (MCs), maintenance charges and the sinking fund. In August 2026 the minister, Nga Kor Ming, also announced a new Building Managers Act.

Neither is law yet. As at 29 October 2026, no bill to amend Act 757 and no Building Managers Bill has been tabled in the Dewan Rakyat. Neither appears on the House’s 2026 bills list, which I checked today. In September, the National Housing Department said the proposed amendments were “not ready to be tabled in Parliament”. Today, your building is still run under Act 757 as it stands, the Strata Titles Act 1985 and your building’s by-laws.

This article sets out what has actually been proposed, what is still missing, and the rules that protect strata owners right now. For older buildings and redevelopment, see my article on the Urban Renewal Bill being on hold.

Not advice. This is general information from Parliament, KPKT and Selangor government statements, NAPIC, the text of Act 757, the Strata Management Tribunal’s official FAQ, law firm commentary and news reports as at 29 October 2026. No amendment bill has been published, and the proposals may change. Please speak to your own lawyer about your strata scheme.

Where the strata law changes stand

Timeline of verified milestones for the review of the Strata Management Act 2013 and the proposed Building Managers Act, from June to 29 October 2026
Strata law reform: verified milestones. Sources: Media Selangor, RTM, The Star, Bernama, The Edge, Malay Mail, Parliament of Malaysia.

On 11 June 2026, KPKT’s deputy minister, Datuk Aiman Athirah Sabu, said the ministry was reviewing Act 757 and its regulations ahead of proposing amendments. “Act 757 on strata management … was (gazetted) in 2013. And now, based on increasing experience, more dynamic progress throughout the country, requires us to amend (the law),” she said, as reported by Media Selangor. RTM quoted her saying the work was still at the review stage.

On 19 June 2026, the Malaysian Anti-Corruption Commission (MACC) said it had recommended amending Act 757 as part of a set of proposals to the National Housing Department on governance of strata finances and procurement, The Star reported.

On 10 August 2026, at the launch of the National Housing Policy 2026–2035, the minister named four housing laws KPKT would draft or amend: a Property Development Act, a Building Managers Act, a Residential Tenancy Act and amendments to the Strata Management Act 2013. He said the government was committed to finalising all four “as soon as possible”, according to Bernama. No tabling date was given.

On 10 September 2026, a senior assistant director of the National Housing Department’s strata management division, Maizatul Izzah Mohd Shamsudin, told a strata seminar that the amendments were still being assessed and were “not ready to be tabled in Parliament”, The Edge reported. “A proposal in this presentation should not be understood as an amendment or as set in stone because we are still refining the amendment proposal,” she said.

The Dewan Rakyat’s third and final meeting of 2026 sits for 37 days until 8 December, Bernama reported. When I checked Parliament’s Dewan Rakyat bills list on 29 October 2026, it held 27 bills for 2026. The most recent, D.R.27/2026, had its first reading on 21 October. None of them deals with strata management or building managers.

ItemStatus at 29 Oct 2026What has been said
Amendments to Act 757Under reviewKPKT reviewing the Act (11 Jun 2026); named in the National Housing Policy (10 Aug 2026)
Amendment bill tabledNot yet“Not ready to be tabled in Parliament” (10 Sep 2026); not on the 2026 bills list
Building Managers ActAnnouncedOne of three new laws under the National Housing Policy (10 Aug 2026)
Building Managers Bill tabledNot yetNo draft or tabling date published
Wider COB investigative powersProposed by the MACCRecommendation to the National Housing Department (19 Jun 2026)
New basis for charges and votingUnder studyReplacing share units, possibly with strata area (10 Sep 2026)
Life-cycle maintenance costs in the SPAPolicy proposalNational Housing Policy 2026–2035 (Malay Mail, 26 Aug 2026)
Commencement and transition rulesNot announced—

What has been proposed so far

No amendment bill has been published, so none of these points is law. They come from official statements and reports.

  • More accountability for JMBs and MCs. The minister said on 10 August 2026 that the amendments aim to strengthen the “accountability, transparency and governance” of JMBs and MCs. “Issues such as faulty lifts, poor cleanliness, neglected public facilities and inadequate maintenance have a direct impact on the quality of life and property values,” he said, as reported by The Star.
  • Stronger oversight of strata finances. The MACC’s governance investigation division recommended amending Act 757 to expand the investigative powers of the Commissioner of Buildings (COB) in cases involving conflicts of interest and misuse of funds, introducing compoundable offences, gazetting financial management and procurement guidelines so they are legally enforceable, and building an e-reporting system similar to Singapore’s. It also called for more enforcement staff and training for officers, The Star reported. These are the MACC’s recommendations. KPKT has not said which, if any, will be in a bill.
  • A new basis for maintenance charges and voting. The National Housing Department is studying whether to replace the share-unit system, which now sets both how much each owner pays and how many votes each owner has. One option is to take share units out of the Strata Titles Act and set up a new system under Act 757, with maintenance costs possibly shared by strata area. The official said share units are fixed early and cannot be changed once strata titles are registered, even when facilities and their use change. This is still being refined.
  • Other areas under study. These include mixed-use and integrated developments, the handover from developers to JMBs and MCs, facilities shared between schemes, urban redevelopment and strata termination, and more digital records, The Edge reported.
  • Long-term maintenance costs shown upfront. The National Housing Policy 2026–2035 proposes amending sale and purchase agreements for strata housing to include estimated maintenance charges and replacement costs over the building’s life cycle, Malay Mail reported. It also proposes more professional building and property managers.
  • A Building Managers Act. The minister said the Act is needed because Malaysia has “almost three million strata property units across more than 27,000 schemes”, including condominiums and SOHO developments, “to ensure that such properties remain safe, conducive and liveable”. He described it as aimed at strengthening the management and maintenance of strata properties. No draft has been published.

One change has already been made administratively. A standard operating procedure on allowances for strata management committee members has been enforced since 3 June 2026, the deputy minister said, to curb the risk of maintenance funds shrinking because of unreasonable allowance rates. It is not an amendment to Act 757. If you sit on a committee, ask your COB for the current SOP.

What is still missing

The bills themselves. There is no published text of an Act 757 amendment bill or a Building Managers Bill, and no tabling date for either.

Who a Building Managers Act would cover. KPKT has not said whether it would register individual building managers, managing agents or firms, which body would regulate them, or how it would fit with existing rules, such as the COB’s power under Act 757 to appoint a managing agent.

How a new charging basis would work. If share units were replaced, nobody has said how existing schemes would move to the new system, or whether owners’ monthly charges would change.

Transition rules. KPKT has not said how any change would apply to JMBs, MCs, committees, by-laws and managing agent contracts already in place.

Why this matters more in KL and Selangor

Bar chart of existing and incoming serviced apartment and SOHO units at H1 2026: serviced apartments Kuala Lumpur 157,032 plus 40,798 incoming, Selangor 162,385 plus 62,983 incoming; SOHO Kuala Lumpur 12,266 plus 3,362 incoming, Selangor 52,463 plus 11,364 incoming
Serviced apartment and SOHO units in KL and Selangor, H1 2026. Source: NAPIC, Property Stock Report H1 2026. Shares of the national totals are the author’s calculations.

Strata living is concentrated in the Klang Valley. According to NAPIC’s Property Stock Report H1 2026, Kuala Lumpur had 157,032 existing serviced apartments and Selangor had 162,385, with another 40,798 and 62,983 under construction. For SOHO, KL had 12,266 existing units and Selangor 52,463, with 3,362 and 11,364 more under construction. By my calculation, the two together hold 64.4% of Malaysia’s 495,884 existing serviced apartments and 84.6% of its 76,515 SOHO units. Those figures do not include ordinary condominiums and apartments, which NAPIC counts separately as residential stock.

Nationally, the minister put the total at almost three million strata units in more than 27,000 schemes.

Management problems are real too. On 12 August 2026, Selangor’s housing executive councillor, Datuk Borhan Aman Shah, told the state assembly that 310 strata schemes with 35,817 lots in Selangor had no functioning JMB, MC or managing agent, based on COB records. He cited low collection of maintenance fees, weak governance, low owner participation and legal and administrative issues, Media Selangor reported. The state is using its e-COB system, owner awareness programmes and a star-rating system to push for better management.

What protects strata owners today

Until any amendment is passed and in force, these are the rules that apply. Act 757 applies only in Peninsular Malaysia and the Federal Territory of Labuan (section 1), so it covers KL and Selangor.

1. The same Act covers condos, serviced apartments and SOHO. Act 757 governs the maintenance and management of stratified buildings and common property. Its definitions cover buildings of two or more storeys intended to be subdivided into parcels (section 2), whether it is marketed as a condominium, a serviced apartment or a SOHO. The Strata Titles Act 1985 deals with ownership. After the developer’s initial management period and before strata titles are issued, a JMB made up of the developer and the purchasers runs the building. Once the strata register is opened, an MC comes into existence.

2. The developer must hand over on time. The developer must convene the JMB’s first annual general meeting within 12 months of delivering vacant possession (sections 17 and 18). A developer who fails to do so commits an offence, with a fine of up to RM250,000, up to three years’ jail, or both. The COB can appoint someone to convene the meeting at the developer’s expense.

3. Charges and the sinking fund are set by law. Each owner pays Charges (the maintenance fee) and a sinking fund contribution for the common property. Charges are shared in proportion to each parcel’s share units. The sinking fund contribution is 10% of the Charges (sections 25(4), 52(3) and 59(2)(b)). A JMB may set a higher rate at a general meeting, but never less than 10%. Under section 60(3)(b), an MC may set different rates of Charges for parcels “used for significantly different purposes”. That can matter in mixed developments with homes, SOHO and shops.

4. Late payment has limits and consequences. Owners must pay within 14 days of a notice. Interest on late payment is capped at 10% a year (sections 25(6) and 60(3)(c)). After a written demand of at least 14 days, a JMB can sue in court or at the Strata Management Tribunal (section 34). It can also ask the COB for a warrant to attach the defaulter’s movable property (section 35). Ignoring the demand without reasonable excuse is an offence, with a fine of up to RM5,000.

5. The accounts must be audited and filed. A JMB must have its accounts audited every year by an approved company auditor and file a certified copy with the COB within 14 days of the audit. The COB can appoint its own auditor to investigate the accounts at the JMB’s expense (section 26). The MC has matching duties.

6. The COB supervises but does not decide disputes. The state appoints a Commissioner of Buildings for each local authority area to administer the Act (section 4). If, after an inquiry into a complaint, the COB is satisfied a building is not being maintained and managed satisfactorily, it may appoint a managing agent to run it (section 86). In Perbadanan Pengurusan Diamond F & Ors v Pesuruhjaya Bangunan Kuala Lumpur & Anor (High Court, 7 April 2025, reported at [2026] 7 MLJ 848), the court held that the COB’s role is “administrative and supervisory”, with no power to decide disputes, according to a case note by Shahrizan & Co. Disputes over elections and meetings go to the Strata Management Tribunal or the courts. The court also held that, within 28 days of a general meeting, a committee only has to file certified copies of the audited accounts and auditor’s report, the resolutions and the minutes.

7. A low-cost tribunal for strata disputes. The Strata Management Tribunal hears claims of up to RM250,000 (section 105). According to its official FAQ: - The filing fee for a claim is RM100 for residential or RM200 for commercial or industrial property. Check which applies to your unit. - There is no time limit for filing. - Since 1 May 2024, all claims are filed online through e-TPS. - Parties normally present their own case. A lawyer may act only with the tribunal president’s permission, where the case involves complex law and a party would face severe financial hardship without one.

The tribunal can order a general meeting to be held, invalidate resolutions, vary late-payment interest rates, and order a developer, JMB or MC to hand over information or documents. Under section 117, it should make its award, where practicable, within 60 days of the first hearing day.

How much Charges and the sinking fund add up to

Bar chart of annual Charges plus a 10% sinking fund at illustrative monthly Charges of RM200, RM300, RM400 and RM500
Charges plus a 10% sinking fund at illustrative monthly Charges. Source: Strata Management Act 2013, ss 25(4), 52(3) and 59(2)(b). Author’s calculations; Charges are illustrative.

On an illustrative RM300 a month in Charges, the sinking fund adds at least RM30 a month. Over a year that is RM3,600 in Charges plus RM360 for the sinking fund, or RM3,960 in total. These figures are for illustration only. Your actual Charges are set by your developer, JMB or MC in proportion to your share units. If the share-unit system is replaced, as is being studied, the way charges are shared could change. Nothing has been decided.

Condo, serviced apartment or SOHO: what is different

Strata management works the same way for all three, but other things can differ. As one law firm puts it, a property’s appearance and marketing name do not, by themselves, determine its legal use, ownership conditions, operating costs or the protections available to the buyer. Check these for the actual unit:

PointWhat to knowWhere to check
Strata managementJMB or MC, Charges, sinking fund, COB and tribunal under Act 757Act 757; by-laws
How NAPIC counts itCondos are counted as residential stock; serviced apartments and SOHO are reported separately from residential stock, alongside commercial propertyNAPIC Property Stock Report
Land use and titleA serviced apartment or SOHO may stand on land with a commercial category or use conditionTitle and approved use
Sale agreementWhether a statutory Housing Development Act agreement applies “cannot safely be determined from the title label alone” (law firm Farid Izzati Ain & Co.)SPA; developer licence
Running costsUtility tariffs, assessment and other charges may differ, and should not be assumedRecent bills for the unit
Financing and useBanks may treat units with commercial features differently; by-laws or approvals may restrict useBank; by-laws; local authority

Checklist before you buy a strata unit

  1. Ask for the latest audited accounts of the JMB or MC, and check the balances of the maintenance account and the sinking fund account separately.
  2. Read the last two AGM minutes. Look for planned major works, lift replacements, special levies, disputes and changes to Charges.
  3. Ask about arrears. A high share of owners not paying can mean poor upkeep and future increases.
  4. Check the share units allocated to the unit, since today they set both your Charges and your votes.
  5. Read the by-laws and house rules, especially on renovation, short-term letting, business use and parking.
  6. Find out who manages the building: the developer, the JMB or MC’s own committee, or a managing agent. Ask for the agent’s appointment terms.
  7. For a serviced apartment or SOHO, confirm the title, approved use, SPA type and recent utility and assessment bills before you commit.

Checklist for existing owners

  1. Pay Charges and the sinking fund on time. Late interest can be charged at up to 10% a year, and the JMB or MC has strong recovery tools.
  2. Attend the AGM and vote. Low owner participation is one of the problems both KPKT and the Selangor government have highlighted.
  3. Ask for the accounts and records in writing. If the JMB, MC or developer refuses, the tribunal can order them to provide information or documents.
  4. Use the right forum. Report offences and compliance failures to your COB. Take disputes over money, meetings and resolutions to the Strata Management Tribunal.
  5. Keep a file. Keep notices, receipts, minutes and correspondence. They matter for any tribunal claim.
  6. Watch for the bills. If an amendment bill or a Building Managers Bill is tabled, read what it says about charges, voting and managing agents before your next AGM.

What to ask your agent and your lawyer

Ask your agent:

  • Can the seller provide the latest audited accounts, the last AGM minutes and a statement that the unit’s Charges and sinking fund are fully paid?
  • Who manages the building today, and are any major works or special levies planned?
  • Is this unit a condominium, a serviced apartment or a SOHO, and what are its recent utility and assessment bills?

Ask your lawyer:

  • What do the title, approved use and SPA say about this unit, and which protections apply?
  • Are there arrears, tribunal awards or court cases involving this unit or the JMB or MC?
  • If Act 757 is amended after I buy, how could changes to share units, charges or voting affect me?

What is still not confirmed

  • The amendment bill. Its text, scope and tabling date are not public.
  • The Building Managers Act. Who it covers, which body would regulate building managers, and when it would be tabled.
  • Share units. Whether they will be replaced, by what, and how existing schemes would change over.
  • The MACC’s proposals. Whether wider COB powers, compoundable offences and an e-reporting system will be included.
  • Life-cycle costs in SPAs. Whether and when sale agreements would have to show long-term maintenance and replacement costs.
  • Timing. Whether anything will be tabled before the Dewan Rakyat rises on 8 December 2026.

Related reading

Sources

About the author

Jessica Leong | Registered Estate Agent E3208
PropNex Realty Sdn Bhd (E (1) 1800/1), KLCC branch. Jessica covers new launch condos in Kuala Lumpur and Petaling Jaya, industrial property in Selangor, bank auction (lelong) properties, and PJ/Selangor offices, shophouses and en-bloc deals. See her new launch pages for Kuala Lumpur, KLCC, Petaling Jaya and Selangor.

PropNex Realty Sdn Bhd, A-G-03, Marc Residence, No. 3, Jalan Pinang, 50400 Kuala Lumpur
Office: 03-2161 8608 · Call/WhatsApp: 010-464 6088
Website: klselangorestates.com

This article is general information based on public sources as at 29 October 2026. It is not legal, tax or financial advice. The amendments to the Strata Management Act 2013 and the Building Managers Act have not been tabled, and their final contents may differ from what is described here. Please consult your own lawyer before buying a strata unit or taking action against a developer, JMB or MC.

WhatsApp JessicaEnquiry form

Talk to Jessica

Send Jessica your details and she will reply by WhatsApp or phone about offices, shophouses, commercial buildings or homes in Petaling Jaya, Selangor and Kuala Lumpur. Prefer to chat now? WhatsApp 010-464 6088 or call.

* Required. Name and phone number are needed so Jessica can reply.

Written by Jessica Leong, Registered Estate Agent E3208, PropNex Realty Sdn Bhd E (1) 1800/1, A-G-03 Marc Residence, No. 3 Jalan Pinang, 50400 Kuala Lumpur, tel. 03-2161 8608. These articles are general information and market commentary, not financial, legal or tax advice; check the current facts with the relevant authorities and your own advisers before you act.

WhatsApp Jessica