National Housing Department Targets 2026 for Overhauled Strata Management Act, Says Jayaselan

The National Housing Department is on track to introduce a revised Strata Management Act (SMA) by 2026, aiming to enhance governance, simplify legal processes, and empower parcel owners with clearer rights and responsibilities.

According to Datuk Jayaselan K Navaratnam, director-general of the department, the revised Act is designed to be “workable, straightforward, and enforceable”, particularly for strata property owners, developers, and managing bodies.

Clear Separation Between Ownership and Management

One of the core reforms includes defining the scope of existing strata-related laws:

“We don’t want overlap between Acts. Titles belong to Act 318 (Strata Titles Act), and everything related to management must fall under Act 757 (Strata Management Act). We want a clear demarcation,” said Jayaselan.

This separation is expected to reduce confusion and streamline enforcement, particularly for developers and managing bodies.

Closing Loopholes: Accountability for Mismanagement

The revised SMA will also tackle long-standing enforcement gaps, particularly involving Management Committee (MC) members.

“There are currently no provisions to penalise MCs for wrongdoing. If someone mismanages funds in Community A, they can still stand for election in Scheme C. That’s a loophole we must close.”

To address this, Jayaselan said the ministry is proposing a blacklisting mechanism similar to the penalties outlined in Act 118 (Housing Development Act) for errant developers.

Rethinking Maintenance Charges and Voting Rights

Another focus of the amendment is to revise how maintenance fees and voting power are calculated in mixed-use and high-rise developments.

“Just because a unit is bigger doesn’t mean it should have more voting power. Common areas are shared, so charges and votes should reflect that.”

This move aims to promote fairer representation and cost-sharing across different parcel types within a development.

Tailored Bylaws for Different Housing Schemes

The revised act will also introduce scheme-specific bylaws to accommodate the diverse needs of various property types, including:

Gated communities
Rent-to-own housing
Public housing
Short-term rental accommodations (STRA)
Developments with green technologies like EV charging stations and solar panels

“Different schemes have different needs, so the law should allow room for flexibility,” Jayaselan explained.

A Unified Framework for Housing and Planning Laws

The amendment also seeks to harmonise multiple housing and planning acts, including:

Act 118 (Housing Development)
Act 133 (Planning Act)
Act 171 (Development Control)
Act 172 (Building Control)
Act 318 (Strata Titles)
Act 757 (Strata Management)

“This will ease regulatory processes for phased and integrated developments,” he said.

The amendment study began in January 2025, with full implementation expected by 2026 after public consultations and legislative drafting.

JUPEM: Cadastral Surveys Critical for Strata Development

During the symposium, Lsr Looi Kam Seng, Director of Selangor’s Department of Survey and Mapping (JUPEM), explained the importance of cadastral surveys in determining accurate property boundaries.

“Cadastral surveys define the rightful boundary of a property — be it land or parcel.”

He added that a final land title is required before developers can proceed with subdivision or building applications, highlighting the importance of involving licensed land surveyors early in the process.

Symposium Aims to Support Legal Reform in Strata Sector

The International Strata Symposium 2025, hosted by REHDA Institute, served as a platform to share insights on strata governance, legal reform, and regulatory best practices. The event supports the Ministry of Housing and Local Government’s effort to amend the Strata Management Act in line with Malaysia’s future development goals.