Housing Ministry mulls new law to improve property management

The Housing and Local Government Ministry is considering introducing a new law to tackle long-standing issues related to poor property and building management.

Its minister Nga Kor Ming said ineffective property management, especially in stratified developments, has significantly impacted property values across the country.

“Currently, there are only 594 licensed property management firms serving 26,334 strata schemes, or 2.91 million housing units.

“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 in Kuala Lumpur today.

Nga noted that the shortage of licensed firms has led to poor service delivery for Joint Management Bodies (JMB) and Management Committees (MC).

This has also resulted in the rise of unlicensed and unqualified property managers, he added.

“This is a serious issue. Many strata property owners and tenants face hardship because of mismanagement by untrained, dishonest, or unqualified individuals. This has led to a decline in property asset values and deteriorating living conditions,” he added.

Reaffirming the ministry’s commitment to protecting the interests of homebuyers, Nga said his ministry has begun engaging with industry associations and stakeholders.

They aim to explore the creation of a dedicated act focused solely on property and building management.

“At present, 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.

Abandoned projects

On another matter, Nga shared updates on his ministry’s efforts to tackle abandoned housing projects.

As of Feb 28, the Task Force on Sick and Abandoned Private Housing Projects successfully revived 1,016 projects worth RM98.96 billion, involving 122,083 housing units, since its establishment in December 2022.

“Many families are still paying for homes they cannot live in while also burdened with rental costs.

“These abandoned projects don’t just affect buyers - they cause neighbourhoods to deteriorate, reduce overall property values, and raise safety concerns, impacting entire communities,” he said.

- Bernama

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