The Selangor state government has brought into sharp focus a significant governance challenge affecting hundreds of residential developments across the region, revealing that 310 strata schemes containing a combined 35,817 housing units currently operate without either a joint management body (JMB) or a management corporation (MC). The disclosure came during proceedings at Bangunan Dewan Negeri Selangor in Shah Alam on August 12, when Datuk Borhan Aman Shah, the state's housing and culture committee chairman, fielded questions about the extent and nature of the problem plaguing these unmanaged residential communities.
The absence of formal management structures in these properties reflects a confluence of interconnected systemic failures that extend beyond simple administrative oversight. Borhan attributed the situation primarily to persistently low maintenance fee collection rates among residents, a phenomenon that creates financial instability and makes it difficult to fund essential upkeep of shared amenities and building systems. Alongside financial constraints, weak governance frameworks have allowed decision-making processes to atrophy, while a broader erosion of awareness and collective responsibility among unit owners has undermined the willingness to participate actively in maintaining common facilities. This combination of factors has created a vicious cycle where deteriorating conditions further discourage participation and investment from residents.
The governance deficit carries serious implications for residents' quality of life and property values across Selangor. Without functioning JMBs or MCs, common areas such as lobbies, corridors, lifts, and exterior spaces lack coordinated maintenance schedules and budgets. Essential safety systems including fire suppression equipment, electrical installations, and structural elements may go unmonitored and unrepaired. For Malaysian property owners accustomed to relatively stable residential environments, the prospect of living in buildings without formal oversight presents considerable risks to personal safety and investment protection. The situation becomes particularly acute in older developments where deferred maintenance compounds the problems of lacking management bodies.
In addressing the structural inadequacies, Borhan outlined a multi-pronged strategy centred on strengthening long-term implementation of the Strata Management Act (SMA) 2013. The state government intends to elevate the capacity of existing and newly-formed JMBs and MCs through comprehensive training initiatives, professional development courses, and structured engagement sessions specifically designed to equip management volunteers with financial literacy and administrative competencies. These educational interventions recognise that many building managers lack formal training in property financial management, procurement practices, and regulatory compliance—skills essential for operating bodies responsible for millions of ringgit in collective assets.
Beyond capacity building, the state government plans to implement awareness campaigns targeted at residential unit owners, recognising that cultural shifts toward collective responsibility cannot be legislated but must be fostered through sustained public education. A star-rating system for building management performance represents an innovative incentive mechanism, introducing competitive benchmarking that could motivate poorly-performing management bodies to improve service delivery while rewarding effective operators. Such rating frameworks, common in other jurisdictions, create transparency that helps prospective buyers and current residents assess management quality when making housing decisions.
The question posed by Rajiv Rishyakaran, the Bukit Gasing assemblyman from Pakatan Harapan, touched on a critical enforcement mechanism that remains underutilised. The Commissioner of Buildings (COB) possesses statutory authority under the SMA to intervene in problematic strata schemes by appointing professional property management agents when building management bodies fail to function adequately or when disputes prevent formation of management structures entirely. Rishyakaran's inquiry essentially challenged why this enforcement power was not being deployed more extensively to resolve the governance vacuum in these 310 schemes.
Borhan's response acknowledged that formation barriers often extend beyond simple apathy. Several strata schemes remain trapped in protracted handover disputes with original developers who retain nominal ownership stakes or fail to release essential documentation and facility keys to newly-formed residents' associations. Other developments are paralysed by internal conflicts among unit owners regarding management philosophy, fee structures, or spending priorities—disagreements that crystallise into factionalism preventing consensus on establishment of functioning bodies. These scenarios necessarily require COB intervention because internal mechanisms cannot resolve disputes where fundamental deadlock exists between stakeholders with opposed interests.
The state government has already initiated dialogue, with meetings held to establish an action committee specifically tasked with unravelling these governance challenges. This collaborative approach signals recognition that solutions cannot be imposed unilaterally but require coordination between state regulatory bodies, local authorities, developers, and resident groups. The COBs are positioned as central actors in this framework, exercising their statutory powers to break deadlocks and facilitate professional management where resident-led governance has proven unworkable.
For Malaysian property investors and residents, this governance crisis illustrates vulnerabilities in the strata title system despite protective legislative frameworks. While the SMA 2013 established comprehensive rules for residential community management, implementation gaps have allowed hundreds of developments to operate in governance limbo. Selangor's experience likely mirrors conditions in other Malaysian states, suggesting the problem extends beyond this single region. The state's commitment to enhanced enforcement and education represents a necessary response, though success will depend on sustained political will and adequate resource allocation to support JMB and MC development.
The situation also underscores the tension between property ownership autonomy and collective welfare in high-density residential environments. While owners naturally resist contributing to maintenance fees—particularly during economic uncertainty—buildings without management structures deteriorate rapidly, ultimately destroying resident well-being and asset values far more comprehensively than disciplined fee collection could. Navigating this psychological and financial challenge remains central to transforming Selangor's strata management landscape.
Moving forward, Borhan committed to continued discussions aimed at identifying durable solutions applicable across the 310 affected schemes. The success of this initiative will likely establish benchmarks for how other Malaysian states address their own strata governance deficits, making Selangor's approach a significant test case for residential community management in Southeast Asia's most urbanised nation.