Singapore | Funds
MCST Management Fund and Sinking Fund
Every Singapore strata owner pays contributions to two funds: the management fund for day-to-day costs and the sinking fund for long-term work. The amounts are set at a general meeting and split by share value. BCA's guides set out how, and the Strata Titles Boards can change contributions that are inadequate or excessive.
The short answer
- Two funds: the management fund for running costs, insurance and repairs; the sinking fund for repainting, replacing major equipment and cyclical maintenance.
- Contributions are decided at a general meeting and paid in proportion to each lot's share value.
- The MCST sets the late payment interest rate; a Board can change an unreasonable rate. We found no cap in the sources we read.
- Unpaid contributions can be recovered as a debt, or by enforced sale of the lot after a special resolution.
- BCA's guides set no minimum sinking fund contribution.
What each fund pays for
BCA's Guide 1: the management fund pays day-to-day costs such as common area water and electricity, building and public liability insurance and repairs. The sinking fund pays for long-term work such as repainting, replacing major equipment and cyclical maintenance. The MCST can vote a special contribution when funds fall short.
BCA's Strata Insights sheet of September 2026 gives an example of saving ahead: with a total share value of 2,000 and $5 million of repairs due in 20 years, a unit with share value 5 pays $52.08 a month, against a one-time levy of $12,500.
How contributions are set
- The amount is decided or reviewed at a general meeting, and each owner pays in proportion to the lot's share value. BCA's sample motion sets each fund at a rate "per share value per month".
- Levying by another method needs a resolution by consensus (every owner agrees in writing).
- A rebate on contributions needs a special resolution.
- BCA charges $500 for revising maintenance charges in a single use development and $1,000 in a mixed use one. Its pages do not say whether that fee applies when an MCST changes its own charges at an AGM.
Late payment and recovery
- The MCST sets the interest rate. BCA's sample motion charges a yearly rate calculated daily on payments received 30 days after the due date, and lets the MCST waive interest on a unit.
- A Strata Titles Board can order that no interest be charged, or set its own rate, if the MCST's rate is unreasonable (s 107).
- Unpaid contributions can be recovered as a debt, or by enforced sale of the lot, which needs a special resolution.
- An owner in arrears 3 days before a meeting cannot vote, and a council member who owes money for more than 3 months can be removed without a meeting.
- A Board can change contributions that are "inadequate or excessive", or a manner of payment that is unreasonable, but cannot change a lot's share value (s 108).
Maximum maintenance charges from 2027
Under the amended section 18, developers of new projects that apply for planning permission on or after 1 June 2027 must get the Commissioner's written approval of the maximum maintenance charge before starting sales and before collecting any charge. Raising the approved maximum after sales needs the written consent of all purchasers. For projects launched on or after 31 December 2026, the maximum rates must also appear in the developer's disclosure, the Option to Purchase and the Sale and Purchase Agreement (URA and BCA circulars, October 2026).
Most rules here come from BCA's Strata Management Guides, written between March 2019 and December 2023, and BCA forms dated October 2025. Sections 101 to 115 of the Act were read in the Strata Titles Boards' Notes of Guidance of 11 December 2025. Singapore Statutes Online could not be read on 31 October 2026, so the current text of the Act and its Regulations was not checked.
Common questions
What is the sinking fund in a Singapore condo? +
The fund for long-term work such as repainting, replacing major equipment and cyclical maintenance, paid by every owner by share value.
What is the management fund? +
The fund for day-to-day costs, such as common area water and electricity, insurance and repairs.
How are maintenance fees calculated in a Singapore condo? +
The general meeting sets a rate for each fund, and each owner pays in proportion to the lot's share value, for example a dollar amount per share value per month.
Is there a minimum sinking fund contribution? +
BCA's guides set none, and we found none in the sources we read.
Can the MCST charge interest on late fees? +
Yes, at a rate it sets. A Strata Titles Board can order no interest or a different rate if the MCST's rate is unreasonable.
What happens if I do not pay MCST contributions? +
The MCST can recover the amount as a debt, or by enforced sale of the lot after a special resolution. You also lose your vote if you are in arrears 3 days before a meeting.
Can owners challenge the contributions? +
Yes. A Strata Titles Board can change contributions that are inadequate or excessive, or an unreasonable manner of payment, on application by the MCST, an owner or a mortgagee in possession.
What is a special levy? +
A special contribution the MCST votes when its funds fall short of what it needs.
What is the new maximum maintenance charge rule? +
For new projects that apply for planning permission on or after 1 June 2027, developers must get the Commissioner's approval of a maximum charge before sales start, and need every purchaser's written consent to raise it.
Can an MCST give owners a rebate? +
Yes, by special resolution.
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