Strata Management Act 2013 (Act 757) — The Essential Facilities Guide for JMBs & MCs

The fiduciary challenge of managing Malaysian strata real estate

Across urban Malaysia—particularly in the Klang Valley, Penang, and Johor Bahru—commercial office towers, integrated mixed-use podiums, and industrial business parks operate predominantly under stratified ownership structures.

Governance of these developments falls under the Strata Management Act 2013 (Act 757) and its accompanying Strata Management (Maintenance and Management) Regulations 2015.

Under Act 757, members elected to a Joint Management Committee (JMC) or Management Committee (MC) carry formal fiduciary responsibilities. They are legally accountable for the proper maintenance, safety, and financial solvency of the development’s common property.

However, management committees composed of voluntary parcel owners often face a daunting gap between statutory expectations and technical operational realities. Without professional facilities management governance, strata developments quickly slide into a cycle of deferred maintenance, declining property values, and regulatory non-compliance.

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1. Maintenance Account vs. Sinking Fund: Financial governance

Act 757 mandates strict separation between two statutory bank accounts. Blurring the lines between these accounts is illegal and exposes committee members to statutory penalties:

The Maintenance Account (Operational Budget)

Dedicated solely to recurring day-to-day operational expenditures:

• Monthly security guards and housekeeping cleaning contracts.
• Scheduled preventive maintenance for elevators, fire alarms, and booster pumps.
• Utility payments for common area lighting, central chillers, and water supply.
• Minor routine repairs, consumable replacements, and managing agent fees.

The Sinking Fund (Capital Replacement Budget)

Mandatory under Section 24 and Section 52 of Act 757 (set at a minimum of 10% of the maintenance charges):

• Reserved strictly for capital expenditure (CapEx) and long-term asset renewal.
• Facade repainting and external waterproofing sealant replacement (every 5 to 7 years).
• Major lift modernization, rope replacements, and drive inverter overhauls.
• Refurbishment of central chillers, replacement of heavy fire booster pumps, and structural concrete repair.

The Sinking Fund Trap: Many JMBs and MCs fail to perform 10-year Life Cycle Costing (LCC) audits. When critical infrastructure fails (such as an obsolete RM400,000 elevator bank), the sinking fund is found to be depleted, forcing contentious emergency special levies that trigger owner disputes and non-payment.

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2. Managing common property liabilities under Act 757

A certified facilities management partner safeguards the MC from the three most common technical liabilities under Malaysian strata law:

Inter-Floor Leakages & the Statutory Form 28 Process

Under Regulations 55 to 63 of the Strata Management Regulations 2015, water ingress between parcels or from common property carries a strict statutory procedure:

• Upon receiving a complaint, the management must conduct a formal inspection within seven (7) days using calibrated thermal imaging or moisture meters.
• A statutory Certificate of Inspection (Form 28) must be officially issued indicating the root cause and identifying whether the upper parcel owner or the MC is legally liable for rectification.
• Professional FM documentation prevents contentious escalations to the Strata Management Tribunal (SMT).

Fire Safety: Mandatory Fire Certificate (FC) Renewal

Under the Fire Services Act 1988 (Act 341), designated commercial and high-density strata buildings must renew their Fire Certificate (FC) annually with Jabatan Bomba dan Penyelamat Malaysia (JBPM):

• Fire pumps, wet and dry risers, sprinkler heads, hose reels, fire alarm panels, and smoke extraction dampers must pass rigorous annual full-flow testing.
• Missing a Fire Certificate invalidates property fire insurance policies and exposes committee directors to direct fines and prosecution.

Vertical Transportation: DOSH / JKKP Lift Compliance

Elevators and escalators are designated machinery requiring annual inspection by DOSH (JKKP) to renew their statutory Certificate of Fitness (CF / PMA):

• Regular load tests, governor inspections, brake pad wear checks, and emergency intercom verifications.
• Facilities management must enforce elevator maintenance vendor SLAs—ensuring maximum 15-minute response times for passenger entrapments and continuous spare parts availability.

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3. By-laws enforcement & contractor management

A well-governed strata property requires consistent enforcement of the Third Schedule By-laws (Act 757) as well as custom house rules passed via Special Resolution:

• Renovation Control & Damage Deposits: Pre-renovation architectural vetting, structural load checking, and daily site supervision to ensure contractors do not alter structural shear walls or tamper with common plumbing stacks.
• Permit to Work (PTW) & Safety Induction: Enforcing OSHA (Amendment) Act 2022 compliance on all third-party service contractors working on the premises, including hot works, working at heights (cradle facade cleaning), and confined space entry.
• Car Park Management & EV Charger Policies: Establishing clear technical and safety guidelines for tenant Electric Vehicle (EV) charger installations, ensuring load capacity does not trip main distribution boards.

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4. In-house management vs. Professional Registered Managing Agent

Many committees initially attempt in-house property management to save costs, only to encounter severe administrative fatigue, high staff turnover, and contractor collusions.

Under Malaysian law, managing agents overseeing strata property must be registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) under Act 242, while technical facility works must comply with CIDB Act 520:

Criteria	Self-Managed / In-House Committee	Professional Integrated FM Managing Partner
Technical Competency	Relies on ad-hoc contractors; limited engineering depth	In-house licensed engineers, ST Chargemen, and OSH coordinators
Statutory Compliance	Prone to missed DOSH, Bomba, and municipal license deadlines	Automated statutory tracking registers and compliance audits
Financial Transparency	Basic spreadsheets prone to bookkeeping discrepancies	Cloud-based strata ERP accounting with automated billing & bank reconciliations
Procurement Power	Small single-site buying power; higher vendor pricing	Group procurement discounts on chemicals, spares, and security services
Legal Insulation	Committee members face direct tribunal disputes	Professional managing agent acts as buffer adhering to strict statutory timelines

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The Access Grid advantage in strata facilities management

Access Grid provides institutional-grade facilities management and technical operations tailored specifically for commercial strata towers, premium industrial estates, and mixed development Management Corporations across Malaysia.

We deliver complete peace of mind through disciplined preventive maintenance, digital transparency in financial reporting, full statutory compliance tracking, and professional council meeting facilitation.

Serving on a JMB or Management Committee? Contact Access Grid today to discover how professional facilities management can protect your asset value and ensure total statutory compliance.