New Property Management Act in the Works to Tackle Strata Boom, Says Minister Nga

Marcus Liew
Apr 25
2 min read

With Malaysia witnessing a rapid surge in strata developments, the government is planning to introduce a dedicated Property Management Act to regulate and improve building and property management standards.

Announced by Housing and Local Government Minister Nga Kor Ming during the International Strata Symposium 2025 at M World Hotel (formerly AVANTÉ Hotel), the move is aimed at addressing the growing complexity of urban strata living and the shortage of licensed property managers.

Licensed Property Managers in Short Supply

Nga revealed a concerning statistic: only 594 licensed property management firms currently serve the nation’s 2.91 million strata units.

“Each firm manages around 5,000 strata units. This highlights a severe shortage in professional property management,” he said.

Currently governed under Act 242, property management practices lack dedicated oversight. Nga emphasized that the new Act will focus solely on regulating the industry to ensure better utilisation of maintenance fees for essentials such as:

Lift maintenance
Parks and common areas
Waste management
Sewerage system repairs

Complaints on Strata Living in KL Reveal Deeper Problems

REHDA Institute chairman Datuk Jeffrey Ng Tiong Lip shared that Kuala Lumpur City Hall (DBKL) receives 7,000–8,000 complaints annually from residents living in strata properties — underlining the need for a more robust framework.

He explained that poor property management is often to blame for asset depreciation and high maintenance costs, especially in older developments.

“Some properties under 30 years old are already in bad shape, not because of age but due to poor management,” said Ng.

Strata Law Critical for Urban Renewal

Ng also highlighted the importance of updating strata laws as part of Malaysia’s Urban Renewal Act (URA)initiatives. He argued that such reforms are vital for addressing issues tied to aging buildings, urban decay, and land scarcity.

He added that other countries such as Singapore, Hong Kong, and Australia have successfully used legal frameworks to empower owners and fast-track urban renewal.

“The URA offers fair compensation and lets developers contribute through master planning, sustainability, and infrastructure — benefiting both property owners and the nation,” he said.

Tackling Abandoned Housing Projects

Alongside the symposium, REHDA Institute launched a research report titled “Abandoned Housing: Challenges, Insights and Solutions”, developed in collaboration with University of Malaya.

Ng stressed that Malaysia faces over 111,000 abandoned or sick housing units across 726 projects, causing emotional and financial strain to thousands of homebuyers.

While most licensed developers maintain a good track record, many abandoned projects stem from unlicensed or financially unstable players.

“This report goes beyond analysis — it proposes actionable solutions: tighter regulations, better financial oversight, and stronger enforcement,” said Ng.

A Step Towards Better Strata Governance

The International Strata Symposium 2025 serves as a platform to discuss pressing issues in strata governance, from management and legal reform to urban renewal and housing recovery.

Hosted by the REHDA Institute and supported by EdgeProp.my as media partner, the event aims to support the Housing and Local Government Ministry in reforming the Strata Management Act (SMA) and introducing new policies for a sustainable urban future.