Written Answer by Ministry of National Development on sinking fund for cyclical maintenance needs of private estates

Jul 8, 2019

Mr Zainal Sapari: To ask the Minister for National Development

(a) why does the Building Maintenance and Strata Management Act not stipulate a minimum percentage, based on the monthly maintenance fee paid by subsidiary proprietors, to be set aside towards the sinking fund to meet cyclical maintenance needs of a private estate; and

(b) whether the Ministry can consider amending the Act to help MCST management committees build sufficient sinking funds without having to go through the process of getting majority support through voting at annual general meetings.

Answer:

Private condominiums, many of which are strata-titled, have different features and facilities, and their cyclical maintenance needs and costs may vary greatly. It is hence impractical to stipulate a minimum percentage of the monthly maintenance fees to be set aside for the sinking fund, which would be relevant to all strata-titled developments.

Instead, under the Building Maintenance and Strata Management Act, or BMSMA in short, MCSTs have the flexibility to determine the amounts to be raised by contributions towards the sinking fund based on their development’s specific needs. The BMSMA requires MCSTs to pass an ordinary resolution at a general meeting. This process allows the management council of the MCST to present the details of the proposed contribution rates, and gives subsidiary proprietors the opportunity to seek clarifications before making a collective decision.