The Building and Construction Authority (“BCA“) conducted a public consultation on proposed areas of review for the Building (Strata Management) Act (“Act“) which has closed on 8 April 2026. These proposals are subject to public feedback and do not represent final legislation.
The Act governs the management of strata-titled properties and sets out the duties and obligations among stakeholders such as Subsidiary Proprietors (“SPs“), Management Councils and Managing Agents. The Act also empowers the Management Corporations (“MCSTs“) of strata-titled properties to make decisions relating to the maintenance and upkeep of their properties.
The review is driven by the ageing of Singapore’s strata landscape: over 1,000 of Singapore’s 3,750 strata developments are at least 30 years old, with many MCSTs facing challenges in maintaining adequate sinking funds for essential facility upgrades. However, given its broad implications on MCSTs, any such proposals would affect all MCST properties.
The Act was last comprehensively reviewed and amended in 2017. As part of BCA’s periodic review of the Act to address emerging needs of strata stakeholders and ensure the relevance of the provisions, BCA has put forth, among others, the following key proposals.
Helping MCSTs to Work Towards having Adequate Funds to Maintain their Estates
- Data collection and improved financial planning: MCSTs are to regularly review supporting documents for essential facility upgrades, and submit financial information and essential facilities records to BCA annually.
- Information publication: BCA will collect financial information and information on age of lifts for publication.
- Minimum sinking fund percentage/ringfenced fund: BCA is exploring whether to establish a minimum sinking fund percentage or require MCSTs to create a ring-fenced fund for essential facilities.
Lowering Level of Resolutions to Facilitate Essential Upgrades in Strata Developments
- Essential facilities and senior-friendly facilities: BCA will lower the level of resolution for improvement works to essential facilities and senior-friendly fittings. Separately, the Government has indicated that it is studying whether to provide co-funding support for lift and escalator safety upgrades in eligible private buildings.
- Solar panel installation: BCA will lower the resolution requirement for third-party solar ownership models. This aligns with overall government emphasis on sustainability and the green energy transition.
Equipping MCSTs to Run their Estates Better
- General meetings: To prevent concentration of voting power at general meetings, the number of proxies held by individuals will be restricted, as will the individuals that an SP can appoint to attend such meetings.
- Council: Eligibility for council elections will be restricted to SPs. Council members will be required to undergo mandatory training with consequences (for example, being barred from standing for council elections) for non-compliance.
- Managing Agents (“MAs”): MCSTs will be required to set performance indicators and determine an appropriate review interval for MAs.
- Electronic lodgement and notices: MCSTs will be allowed to lodge by-laws and submit information of council and general meetings electronically to BCA. MCSTs will also be allowed to send electronic notices to SPs without having to be followed up by hard copies, as is presently required.
- Withholding MCST documents: MCSTs will be disallowed from using outstanding fees as “reasonable excuse” for withholding MCST documents. This addresses the current practice whereby MCSTs have relied on outstanding fee arrears as a ground to withhold records from SPs
- Permitted investments: BCA will specify the types of investment tools or products MCSTs can invest in using their funds, and introduce safeguards for higher-risk investment products.
- Annual General Meetings (“AGMs”): MCSTs will be required to table the mode of the subsequent AGM for decisions by SPs.
- Disclosure of data: BCA will specify the scope of data that MCSTs are required to disclose upon request.
- Dispute resolution: A mandatory referral mechanism will be established directing parties with prolonged disputes to approach Strata Titles Boards.
- Contact information: MCSTs are to submit contact information of the MCSTs and the council members to BCA annually.
- Increased penalties: Maximum penalties for non-compliance by MCSTs and individual office holders for critical obligations will be increased.
Improving Clarity of Existing Provisions
- Obtaining MCST records: BCA will clarify the eligibility to obtain copies of MCST records without prior viewing under section 47 of the Act.
- Cut-off dates: BCA will specify cut-off dates of 30 days from the issuance of TOP for (i) establishment of maintenance funds; and (ii) obligation of developer to pay maintenance funds.
- Council seat for mixed-use developments: BCA will establish a clearer reference for mixed-use developments regarding the reserved council seat requirements.
Generally, the proposals can be seen to focus on strengthening the financial health of MCSTs, and improving transparency and accountability in management and governance processes.
For clients acquiring strata-titled properties, the proposed public disclosure of selected information (financial and age of lifts), if enacted, should be incorporated into standard due diligence checks going forward. If minimum thresholds for sinking funds are established, clients looking to acquire strata-titled properties should be mindful that these would entail heavier financial obligations on SPs, particularly in the case of older estates, even though these changes improve the long-term financial health of MCSTs.
Separately, the proposed lowering of resolution thresholds for essential and senior-friendly facility upgrades, as well as solar panel installations, may affect the ability of minority stakeholders to block such works in developments they hold or are considering acquiring.
Click on the following link for more information:
- Public Consultation on Proposed Review of Building (Strata Management) Act (available on the REACH website at reach.gov.sg)
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