SHAH ALAM (June 12): Malaysia’s rapid growth in strata developments is exposing governance gaps, particularly as urban centres shift from landed properties to high-density mixed-use projects, according to speakers at The Strata Conference 2026.
National Housing Department Strata Management Division assistant director Zamri Ishak said Kuala Lumpur has seen a sharp increase in strata schemes, with developments now commonly integrating residential, retail, and commercial components such as SoHo and SoVo units.
He noted that the expansion has significantly increased management complexity, requiring more structured and technical governance frameworks beyond traditional property maintenance approaches.
Zamri also highlighted that modern strata residents are increasingly knowledgeable, with many parcel owners being professionals familiar with the Strata Management Act (SMA), which raises expectations for transparency and governance.
He added that future amendments to the Act must consider feedback from regulators, developers, and industry stakeholders to address legal gaps in line with evolving market conditions.
He further stressed that strata governance extends beyond legal compliance, as management corporations (MCs) and joint management bodies (JMBs) must also manage community dynamics and behavioural challenges.
From a legal perspective, Nor & Co partner Datuk Pretam Singh Darshan Singh said developers remain responsible for rectifying defects in common property even after paying statutory deposits to the commissioner of buildings, as this obligation remains contractual under sale and purchase agreements.
He also noted that legal precedent confirms that JMBs and MCs are the appropriate entities to initiate legal action on issues involving common property, rather than individual owners acting independently.
On tenancy matters, he clarified that management bodies cannot arbitrarily restrict unit rentals unless such rules are properly established through legally valid by-laws.
He emphasised key provisions under Sections 148 and 149 of the SMA, which ensure the Act overrides inconsistent prior agreements and prevents parties from contracting out of its legal framework.
From an industry perspective, Real Estate and Housing Developers’ Association Malaysia (Rehda) exco member Datuk Charlie Chia Lui Meng said governance frameworks for MCs and JMBs should better reflect operational realities, particularly regarding fund management and accountability.
He highlighted that current audit cycles and AGM timelines can create gaps between financial accountability and committee responsibility, suggesting alignment with tenure-based governance periods.
He also pointed out that unclear definitions within the Strata Management framework contribute to disputes, particularly terms such as “provisional block” and “shared units formula,” which lack precise interpretation.
Meanwhile, Chee Hoe & Associates litigation partner Lai Chee Hoe said the core challenge in strata management is not the legislation itself, but the increasing complexity of modern developments and inconsistent interpretation among stakeholders.
He explained that as strata developments evolve into dense, multi-use vertical communities, regulatory focus has shifted from ownership issuance to long-term operational management, including issues such as Airbnb regulation, EV charging infrastructure, and cost allocation.
He concluded that future reforms are likely to focus on improving clarity within existing laws rather than overhauling the legal framework entirely.
