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Kota Kinabalu: Licensed property managers should be engaged to manage strata properties in Sabah when the Building Management Enactment 2026 is passed in the State Assembly this year.

A group of them met at the Sabah International Convention Centre recently to sign a memorandum to be handed over to the State Assemblymen and the authorities.

Registered Property Manager Ken Lo said Sabah is still lagging behind in such legislation and professional practice regulations compared to West Malaysia and Sarawak which have already enacted their laws.

He said professional property managers want to propose a critical amendment to the proposed Building Management Enactment 2026 to ensure that strata properties are managed with professional competence, transparency and accountability that licensed property managers are well trained and professionally insured against negligence. 

“The current wording in the proposed enactment states: ‘The developer or Management Corporation may appoint a registered Property Manager to regulate the control, management and administration of subsidiary title properties.’

“While this provision recognises the role of professional property managers, the use of ‘or’ and ‘may appoint’ makes the appointment discretionary.

“This may lead to inconsistent management standards and allow unqualified parties to manage complex subsidiary title properties,” Lo said.

He said the clause should be amended to read: “The developer and the Management Corporation SHALL appoint a registered Property Manager to regulate the control, management and administration of subsidiary title properties.”

This will ensure that professional property management becomes a mandatory requirement rather than an optional practice.

Lo elaborated on various corrupt practices and moral hazard risks involving subsidiary title developments which collectively manage millions of ringgit annually in maintenance charges and sinking funds contributed by property owners.

“Without professional management, these funds may be exposed to risks such as poor financial oversight, misallocation of funds, lack of transparency and governance disputes.

“Registered Property Managers are trained to ensure proper financial governance, budgeting, auditing and accountability in the management of these funds.

“This needed amendment will provide stronger protection for property owners’ financial contributions,” Lo stressed, adding that it will enhance Sabah’s reputation as a well-governed property market and reduce disputes within subsidiary title developments.

Ultimately, the Building Management Enactment 2026 with the appointment of the Commissioner of Building will be aided by the expertise of professional property managers to act with integrity to protect the interests of property owners and residents, strengthen financial governance of maintenance funds and to prevent unlicensed property management practices.