Kota Kinabalu: Property owners in Sabah will have greater control over how their buildings are managed with the passing of a new law aimed at curbing prolonged developer control and improving transparency.
The State Assembly on Thursday passed the Building Management Enactment 2026, which introduces a more comprehensive framework to regulate the management of strata properties, including residential, commercial, and mixed developments.
Tabling the Bill, Local Government and Housing Minister Datuk Arifin Arif said the new law was necessary as existing legislation was no longer sufficient to address current challenges in building management.
He said the current framework did not provide a comprehensive system, particularly in managing buildings before management corporations are formed, and was no longer in line with present-day needs.
Arifin said the enactment aims to create “a more comprehensive, modern and effective” building management system to better regulate strata developments in the state.
“This is not merely a legal instrument, but a commitment by the state government to protect the interests of property owners and improve the quality of life in strata communities,” he said.
The law addresses long-standing issues such as delays in forming management corporations, weak financial oversight, lack of transparency in maintenance funds and the absence of clear dispute resolution mechanisms.
Management corporations must be established within 14 days after the issuance of the certificate of completion and compliance, with developers required to hand over management to owners within 15 months.
It also sets clearer responsibilities for developers acting as interim management bodies, including the proper maintenance of buildings, management of accounts and the obligation to transfer records and finances to the management corporation.
Stricter financial accountability is also mandated, with maintenance and sinking fund accounts required to be audited by certified auditors and properly reported to ensure transparency.
A key feature is establishment of a Building Management Tribunal which will provide a faster, more cost-effective and accessible avenue for owners to resolve disputes, with decisions enforceable without lengthy court processes.
The enactment also introduces the role of a Commissioner of Building Management to oversee, monitor and enforce compliance, including powers to investigate, inspect and take enforcement action.
In addition, the law allows for the formation of subsidiary management corporations within large-scale or phased developments, enabling more focused management at the precinct level. The move comes amid growing concerns over building management in Sabah.
According to the Land and Surveys Department, 364 developments involving 53,974 strata titles have applied to form management corporations, representing less than 50% of such buildings in the state.
This means more than 53,000 owners are still not under proper management structures, highlighting the scale of the issue the new law aims to address.
Api-Api Assemblyman Loi Kok Liang raised concerns over fairness in maintenance fee contributions, questioning whether developers should also pay for unsold units instead of leaving buyers to shoulder the full cost.
Bugaya assemblyman Jamil Hamzah called for stronger checks and balances in the implementation of the law, stressing that good legislation could fail without integrity and proper enforcement.
He highlighted the need for independent audits, transparent procurement processes and whistleblower protection, warning that weak governance could undermine the rights of property owners.
