David Babakaiff
Written by David Babakaiff · Co-Founder, VanPlex | 25+ Years BC Construction Last reviewed: October 2026

StraPlex | Malaysia

Strata Management Act 2013 Explained

In Peninsular Malaysia and Labuan, buildings and land divided into parcels are run under the Strata Management Act 2013 (Act 757, Akta Pengurusan Strata 2013), which came into force on 1 June 2015. It works together with the Strata Titles Act 1985 (Act 318). Below: what a parcel, strata title and share units are, who manages the development at each stage, and the rules that apply even to a small development.

The short answer

  • Act 757 covers the maintenance and management of strata buildings and their common property. It applies only to Peninsular Malaysia and the Federal Territory of Labuan.
  • Each parcel has its own strata title. Shared parts such as the roof, lift and corridors are common property.
  • Share units set each parcel's share of the maintenance charges and its votes on a poll.
  • The development is run first by the developer, then by a joint management body (JMB), then by a management corporation (MC) once the strata register is opened.
  • The Commissioner of Buildings (COB) for each local authority area runs the Act day to day, and the Strata Management Tribunal hears claims up to RM250,000.

What Act 757 covers

Act 757 covers the "maintenance and management of buildings and common property". It must be read together with the Strata Titles Act 1985 and that Act's subsidiary laws (Act 757, s 3). It replaced the Building and Common Property (Maintenance and Management) Act 2007 (Act 663). Two sets of regulations sit under it: the Strata Management (Maintenance and Management) Regulations 2015, in force from 2 June 2015, and the Strata Management (Strata Management Tribunal) Regulations 2015, in force from 1 July 2015.

Section 1(2) says the Act applies only to Peninsular Malaysia and the Federal Territory of Labuan. Sabah and Sarawak are outside it.

Strata title, parcels and share units

  • Parcel (petak): one of the individual units in a building, held under its own strata title. KPKT's handbook adds that a land parcel is a unit on a lot with a building of not more than four storeys.
  • Accessory parcel: used with a main parcel by that owner only and not sold on its own, for example a parking bay.
  • Strata title (hakmilik strata): the separate title for each parcel. The duty to apply for strata titles lies with the landowner or developer.
  • Common property (harta bersama): the part of the lot outside every parcel, used by the occupiers of two or more parcels. KPKT's examples: the roof, lift, playground, corridor lights, prayer room and hall.
  • Limited common property: common property set aside by a comprehensive resolution for some owners only, managed by a subsidiary management corporation.
  • Share units (unit syer): set each parcel's share of charges and its votes on a poll. Before strata titles are issued, each parcel has allocated share units set by the developer's licensed land surveyor or by the formula in the Act's First Schedule.

Who manages the development, stage by stage

The JMB is formed at its first AGM, which the developer must hold no later than 12 months after vacant possession of a parcel is handed to a purchaser (s 17). If an MC already exists before that, no JMB is formed (s 17(5)). The developer must hold the MC's first AGM within one month after owners other than the developer hold at least a quarter of the share units (s 46, s 57).

StageWho managesWhen it ends
Developer's management periodThe developerOne month after the JMB is formed
Joint management body (JMB)Developer and purchasers, through an elected committeeDissolved 3 months after the MC's first AGM
Management corporation (MC)All the parcel owners, through a committee (or every owner if there are 3 or fewer)Formed when the strata register book is opened

The Commissioner of Buildings

The State Authority appoints a Commissioner of Buildings (Pesuruhjaya Bangunan) for each local authority area (s 4). The COB receives the JMB's or MC's registration, audited accounts, minutes and by-laws, approves committee allowance rates, can appoint a managing agent where a body is not managing the building properly, and issues warrants to seize property for unpaid charges. KPKT is the custodian of Act 757. On 27 November 2025 KPKT launched eStrata, which replaces eCOB for scheme data such as owner details, financial reports, AGM minutes, by-laws and building insurance.

Rules even a small development must follow

  • An AGM every year, with no more than 15 months between AGMs. Not holding one is an offence (MM Regulations reg 34).
  • Two bank accounts, a maintenance account and a sinking fund account, before any money is collected.
  • A sinking fund contribution of at least 10% of the charges.
  • A yearly audit by an approved company auditor, with the audited accounts filed with the COB within 14 days.
  • Building insurance at no less than the reinstatement value, with a registered valuer's valuation at least every five years. Owners of land parcels insure their own buildings.
  • A certificate for an owner or buyer within 21 days, for a fee of up to RM50.

Act 757 rules are our English reading of the Malay text as passed in 2013, the copy KPKT and JPN publish. The Strata Management (Maintenance and Management) Regulations 2015 and the Tribunal Regulations 2015 were read in their Malay and English text. The Attorney General's legislation site could not be read on 31 October 2026, so later amendments could not be checked. JPN's 2025 annual report shows an amendment to Act 757 still being prepared in 2025.

Common questions

What is the Strata Management Act 2013? +

Act 757 (Akta Pengurusan Strata 2013) is the law for maintaining and managing strata buildings and common property in Peninsular Malaysia and Labuan. It came into force on 1 June 2015 and is read together with the Strata Titles Act 1985.

What is strata title? +

The separate title held for each parcel in a subdivided building or land. The landowner or developer must apply for strata titles. Each parcel's owner then shares the common property with the other owners.

What does strata title mean in Malaysia? +

It means you hold a title to your own parcel, such as an apartment, and share the common property, such as the roof, lift and corridors, with the other owners. The owners together form the management corporation once the strata register is opened.

Does the Strata Management Act apply in Sabah and Sarawak? +

No. Section 1(2) says the Act applies only to Peninsular Malaysia and the Federal Territory of Labuan.

What are share units? +

The number given to each parcel that sets its share of the maintenance charges and its votes on a poll. Before strata titles are issued, allocated share units are set by the developer's licensed land surveyor or by the Act's formula.

What is the difference between a JMB and an MC? +

A JMB (joint management body) is formed by the developer and purchasers before the strata register is opened. An MC (management corporation) is made up of all the parcel owners and comes into existence when the strata register book is opened. The JMB is dissolved 3 months after the MC's first AGM.

Who enforces the Strata Management Act? +

The Commissioner of Buildings (COB) appointed for each local authority area. The COB also investigates when a Tribunal award is not obeyed.

Must a small strata development have its accounts audited? +

Yes. The Act requires a yearly audit by an approved company auditor and filing with the COB within 14 days. We found no exemption for small developments.

Must strata buildings be insured? +

Yes. The developer, JMB or MC must insure the building against fire, lightning, explosion, burst pipes and tanks, windstorm and any other listed event, for at least the reinstatement value, valued by a registered valuer at least every five years. Land parcels are excluded.

Has the Strata Management Act been amended? +

Every KPKT and JPN page we opened links only the 2013 text. JPN's 2025 annual report records workshops and meetings on a proposed amendment during 2025. We could not check the Attorney General's site for a later version.

What is eStrata? +

A KPKT system launched on 27 November 2025 to replace eCOB. Management bodies will update their scheme data there, including owner details, financial reports, AGM minutes, by-laws and building insurance.

Read next

Official Sources

General information, not tax or legal advice. Tax rules and legal requirements change and depend on your specific situation. Confirm current rules with your Commissioner of Buildings (COB) and a Malaysian lawyer before making a decision.

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