The Selangor state government has disclosed that 310 residential strata schemes, encompassing 35,817 units across the state, currently operate without either a joint management body (JMB) or management corporation (MC). The revelation, made during the state assembly sitting at Bangunan Dewan Negeri Selangor in Shah Alam on August 12, underscores a significant governance challenge facing one of Malaysia's most urbanised states. The scale of the issue—affecting tens of thousands of residents—highlights systemic difficulties in ensuring proper management and maintenance of common facilities in residential schemes across Selangor.

Datak Borhan Aman Shah, who chairs the Selangor housing and culture committee, identified multiple interconnected factors contributing to the absence of formal management structures in these buildings. Poor collection of maintenance fees remains a primary obstacle, creating financial constraints that discourage residents from establishing or maintaining governance bodies. Beyond financial challenges, Borhan pointed to broader institutional weaknesses including inadequate governance standards and insufficient awareness among unit owners regarding their responsibilities and participation requirements in maintaining shared spaces.

The lack of collective responsibility among property owners represents a particularly persistent challenge. Many residents either do not understand the necessity of formalising management structures or prioritise short-term financial concerns over long-term building maintenance. This creates a vicious cycle in which buildings deteriorate due to poor upkeep, further discouraging owners from investing effort in establishing proper governance frameworks. Borhan acknowledged that addressing this cultural and educational dimension requires sustained effort beyond regulatory measures alone.

To tackle these interconnected problems, the Selangor government outlined a comprehensive long-term strategy centred on strengthening the implementation of the Strata Management Act 2013. This legislative framework provides the foundation for establishing and regulating JMBs and MCs, yet enforcement has faced persistent gaps. The state's commitment to reinvigorating this regulatory apparatus signals recognition that existing mechanisms require revitalisation and more rigorous application across problematic schemes.

Capacity-building represents a cornerstone of the proposed solution. The state government intends to enhance the management capabilities of existing JMBs and MCs through structured training programmes, professional courses and regular engagement sessions. These initiatives aim to equip board members and administrators with essential competencies in financial management, governance practices and compliance with regulatory requirements. By improving the professionalism of those overseeing strata schemes, the state hopes to create more effective management bodies that can address collection challenges and restore resident confidence in formal structures.

Parallel awareness campaigns targeting property owners will seek to rebuild understanding of ownership responsibilities and the benefits of collective management. Public engagement efforts will emphasise how properly functioning JMBs and MCs directly correlate with property value retention, improved safety standards and enhanced quality of shared living environments. The state recognises that sustainable solutions depend not merely on regulatory compliance but on voluntary participation rooted in resident understanding of mutual interests.

Borhon also announced plans to implement a star-rating system designed to incentivise more efficient and transparent building management. This competitive mechanism would recognise and reward well-managed schemes, creating positive peer pressure while providing benchmarks that guide underperforming strata bodies toward improvement. The rating system could influence property values and owner satisfaction, further motivating adoption of best practices.

When questioned by Rajiv Rishyakaran, the Bukit Gasing assemblyman from Pakatan Harapan, about why the Commissioner of Buildings (COB) had not exercised authority to appoint professional property agents to manage problematic schemes, the state government acknowledged that more complex factors warranted caution. Many strata schemes face governance challenges rooted in unresolved developer handover issues and ownership conflicts predating the absence of formal management bodies. Rather than imposing external professional management—which can trigger resident resistance and legal complications—the government determined that addressing underlying disputes required COB intervention and negotiated solutions.

A meeting to establish an action committee has already been convened to systematically address the governance vacuum affecting these 310 schemes. The committee's work recognises that singular interventions prove insufficient; instead, solutions must be tailored to specific local circumstances. Some schemes might require mediation between conflicting owner factions, others need developer accountability mechanisms, while still others primarily need residents educated about forming governance structures.

The COBs will continue playing a central coordinating role, particularly in schemes where developer disputes or unit-holder conflicts prevent voluntary establishment of management bodies. This approach balances regulatory oversight with respect for resident autonomy, acknowledging that sustainable governance emerges most effectively when owners understand and actively support formal structures. The state's emphasis on continued discussion and collaborative problem-solving suggests recognition that durable solutions require stakeholder buy-in rather than top-down imposition.

For Malaysian property owners and residents, this situation in Selangor carries broader implications. The prevalence of ungoverned strata schemes indicates systemic challenges affecting urban housing across the country, where rapid development has often outpaced regulatory implementation and resident education. Selangor's experience demonstrates that resolving such governance deficits requires multifaceted interventions combining legal enforcement, capacity development, stakeholder engagement and targeted incentives. The state's integrated approach—combining stricter regulatory implementation with practical support for management bodies and resident education—offers a template that other states confronting similar challenges might adapt to their own contexts.