Strata Management Act 2013

Strata Management Act 2013 · Act 757
Akta Pengurusan Strata 2013
Applies to: Peninsular Malaysia and the Federal Territory of Labuan (Sarawak has its own Strata Management Ordinance 2019) · Official text ↗

Key points

Before strata titles are issued, the developer and then a Joint Management Body (JMB) manage the building; after titles are issued, the Management Corporation (MC) takes over.
Owners must pay maintenance charges and a sinking fund contribution of at least 10% of the charges, within 14 days of notice (ss 25, 60, 61).
Late payment can attract interest of up to 10% a year, and ignoring a formal demand is an offence (fine up to RM5,000, jail up to 3 years, or both) (ss 34, 78).
The Commissioner of Buildings (COB) at your local authority oversees strata management and can issue warrants to seize a defaulter's movable property.
The Strata Management Tribunal hears listed strata disputes up to RM250,000; not complying with its award can lead to a fine of up to RM250,000 or jail up to 3 years (ss 105, 123).

What this law covers

The Strata Management Act 2013 (Akta Pengurusan Strata 2013) came into force on 1 June 2015 in most of Peninsular Malaysia (12 June 2015 in Penang) and applies in Peninsular Malaysia and Labuan. It governs the maintenance and management of buildings and land that are, or will be, subdivided into parcels (petak) with strata titles, such as condominiums, apartments, flats, shop-offices and gated landed schemes, together with their common property (harta bersama) such as lifts, corridors, pools and car parks.

Strata titles themselves are issued under the Strata Titles Act 1985. Buying a strata unit from a developer is covered by the Housing Development Act. Sarawak has its own Strata Management Ordinance 2019.

Who manages the building: developer, JMB and MC

Preliminary management period: from vacant possession, the developer manages the building and collects charges.
Joint Management Body (Badan Pengurusan Bersama, JMB) (s 17): formed at the first annual general meeting, which must be held within 12 months of vacant possession. It is made up of the developer and the purchasers and is run by an elected joint management committee.
Management Corporation (Perbadanan Pengurusan, MC): comes into existence when strata titles are issued and the building is registered. It consists of all the parcel owners and takes over from the JMB. It is run by an elected management committee.
Managing agent (ejen pengurusan): the JMB or MC may appoint a registered managing agent to run day-to-day operations.

The JMB or MC must keep proper accounts, have them audited every year and file them with the Commissioner (ss 26, 62). Owners can inspect records.

Maintenance charges and sinking fund

Every owner must pay two things in proportion to their share units (unit syer):

Charges (caj penyenggaraan): for the day-to-day maintenance and management of the building and common property;
Sinking fund (kumpulan wang penjelas): for future major works such as repainting or lift replacement. The contribution is 10% of the charges, unless the general meeting decides on more, and never less than 10% (s 25(4) for JMBs; s 61(3) for MCs).

Payment and arrears:

Under a JMB, you must pay within 14 days of receiving notice (s 25(5)). Unpaid sums can attract interest of up to 10% a year (ss 25(6), 60(3)(c)).
The JMB or MC can serve a written demand giving at least 14 days to pay (ss 34, 78). If you still do not pay, it can sue you in court or at the Tribunal, or ask the Commissioner for a warrant of attachment to seize and sell your movable property (ss 35, 79). Tenants who pay to avoid seizure can deduct the sum from their rent.
Ignoring the written demand without reasonable excuse is an offence: fine up to RM5,000, jail up to 3 years, or both, plus up to RM50 a day while it continues (ss 34(3), 78(3)).

You must keep paying even if you are unhappy with the management. Raise complaints through meetings, the COB or the Tribunal instead.

By-laws

Every strata development is subject to the by-laws (undang-undang kecil) prescribed by the Strata Management (Maintenance and Management) Regulations 2015, which set basic rules for every development on the use of parcels and common property. A JMB may make additional by-laws (s 32), and an MC may do so by special resolution at a general meeting (s 70) on matters such as safety and security, pets, parking, floor coverings, refuse, behaviour and architectural guidelines. Additional by-laws cannot conflict with the prescribed ones. By-laws bind owners, tenants and occupiers, and breaches can lead to fines set by the by-laws and claims at the Tribunal.

The Commissioner of Buildings (COB)

Each state appoints a Commissioner of Buildings (Pesuruhjaya Bangunan, COB) (s 4), usually based at the local council (for example DBKL in Kuala Lumpur, or the city or municipal council). The COB:

supervises developers, JMBs, MCs and managing agents;
receives audited accounts and can inspect records;
issues warrants of attachment for arrears;
can call meetings or act where a JMB or MC is not functioning;
receives complaints about management.

Contact your local council's COB unit first for complaints about how the building is run.

Strata Management Tribunal

Part IX sets up the Strata Management Tribunal (Tribunal Pengurusan Strata) (s 102), under KPKT.

Who can file (s 107): developers, purchasers, proprietors, JMBs, MCs, subsidiary MCs, managing agents and, with leave, other interested persons.
What it hears: claims listed in Part 1 of the Fourth Schedule, such as recovery of unpaid charges and sinking fund, disputes over by-laws, failure to carry out duties, defects in common property, and validity of meetings and resolutions.
Limit: RM250,000 (s 105(1)). The Limitation Act 1953 does not apply to Tribunal proceedings (s 105(2)). It cannot decide title to land (s 105(3)).
Lawyers: not allowed unless the case involves complex law and a party would suffer severe financial hardship; then both sides may be represented (s 110).
Settlement first: the Tribunal will try to help the parties reach an agreed settlement (s 112).
Award: where practicable within 60 days of the first hearing day (s 117). It is final and is treated as a court order (s 120). A party may apply to the High Court to set it aside only for serious irregularity (s 121).
Non-compliance: an offence, fine up to RM250,000 or jail up to 3 years, or both, plus up to RM5,000 a day while it continues (s 123).

Laws cited on this page

Act 254	Limitation Act 1953 · Akta Had Masa 1953	Official text
Act 318	Strata Titles Act 1985 · Akta Hakmilik Strata 1985	Official text
Act 757	Strata Management Act 2013 · Akta Pengurusan Strata 2013	Official text

Listed automatically from the federal Acts named on this page. All laws of Malaysia →

Key sections

Provision	What it says, in plain words
s 4	Appointment and role of the Commissioner of Buildings.
s 17	Joint Management Body formed at the first AGM, within 12 months of vacant possession.
s 25	Owners pay charges and sinking fund (at least 10% of charges) to the JMB within 14 days; interest up to 10% a year on arrears.
s 32	By-laws applying before the MC exists, and additional JMB by-laws.
s 34	Written demand for arrears; recovery in court or Tribunal; offence of ignoring the demand.
s 35	Commissioner's warrant to attach and sell a defaulter's movable property (JMB stage).
ss 60–61	MC's maintenance account and sinking fund; interest on late payment up to 10% a year.
s 70	MC may make additional by-laws by special resolution (pets, parking, security, etc.).
ss 78–79	MC's recovery of arrears, offence for ignoring a demand, and warrant of attachment.
s 105	Tribunal's jurisdiction: Fourth Schedule claims up to RM250,000.
s 110	No lawyers unless complex law and severe financial hardship.
s 117	Award within 60 days where practicable; orders in Part 2 of the Fourth Schedule.
s 121	Challenge to the High Court only for serious irregularity.
s 123	Failing to comply with an award: fine up to RM250,000, jail up to 3 years, or both.

Worked examples

Example 1: Owner stops paying charges in protest

Facts. Encik Zainal owns a unit in a Shah Alam condominium. He stops paying maintenance charges because the lifts keep breaking down. After 8 months he owes RM2,400.

The law. Owners must pay charges and sinking fund regardless of complaints (ss 60, 61). The MC can serve a written demand (s 78), sue at the Tribunal, or seek a warrant of attachment from the COB (s 79). Ignoring the demand is an offence (s 78(3)). Interest of up to 10% a year can be charged.

Outcome. Zainal should pay the arrears and pursue his complaint separately, for example a Tribunal claim against the MC for failing to maintain the lifts, or a complaint to the COB.

Example 2: Developer never calls the first AGM

Facts. Residents of a new apartment block in Klang received keys 18 months ago, but the developer has not called the first meeting to form the JMB.

The law. The first AGM to establish the JMB must be convened within 12 months of vacant possession (s 17).

Outcome. Residents should write to the developer and complain to the COB at the local council, which can take action to ensure the meeting is held.

Example 3: Pet ban by-law

Facts. An MC in Penang passes an additional by-law banning dogs. A resident, Ms Ong, already keeps a small dog.

The law. An MC may make additional by-laws on keeping pets by special resolution (s 70). Disputes about by-laws can go to the Strata Management Tribunal.

Outcome. Ms Ong can check whether the by-law was validly passed by special resolution and is consistent with the prescribed by-laws, and file a Tribunal claim if not.

Example 4: Water leaking from the unit above

Facts. Water from Mr Raj's upstairs neighbour's bathroom keeps leaking into his ceiling. The neighbour refuses to fix it.

The law. Disputes between owners about defects and repairs that affect another parcel fall within the Tribunal's Fourth Schedule claims.

Outcome. Mr Raj can report the leak to the JMB or MC, which can inspect, and file a Tribunal claim for repairs and costs, well under the RM250,000 limit.

Examples are simplified illustrations with invented names; real cases turn on their own facts.

Questions & answers

How much sinking fund do I have to pay?

At least 10% of your maintenance charges. The JMB or MC can raise it at a general meeting but cannot go below 10% (ss 25(4), 61(3)).

Can the management cut my water or access card if I don't pay?

The Act provides specific ways to recover arrears: a written demand, a claim in court or at the Tribunal, and a warrant of attachment from the COB (ss 34–35, 78–79). Whether other measures are allowed depends on the by-laws and the circumstances; get advice if your services are cut.

What is the difference between a JMB and an MC?

A JMB (s 17) manages the building after vacant possession but before strata titles are issued and includes the developer and buyers. An MC is formed when strata titles are issued and is made up of all the owners. It takes over from the JMB.

What is the Strata Management Tribunal's limit?

Claims listed in the Fourth Schedule up to RM250,000 (s 105). The Limitation Act does not apply, but file promptly.

Can I bring a lawyer to the Strata Management Tribunal?

Normally no. Lawyers are allowed only if the case involves complex issues of law and a party would suffer severe financial hardship without one (s 110).

Who do I complain to about bad management?

Raise it first at a general meeting or with the committee. Then complain to the Commissioner of Buildings at your local council, or file a claim at the Strata Management Tribunal.

All questions & answers → · Ask your own →

This page explains the general position in Malaysia (last reviewed October 2026). It is not legal advice — check the current law and get advice on your own facts.

Sources

Housing Development (Control and Licensing) Act 1966 Renting and buying property National Land Code (Revised 2020)Tribunals and alternatives to court