SINGAPORE: The government is exploring requiring condominium management teams to submit and publish key information about their finances to ensure they have enough funds for essential works, Second Minister for National Development Indranee Rajah said in parliament on Wednesday (Mar 4).
It is part of a comprehensive review to strengthen the Building (Strata Management) Act, which sets out the legal framework for management corporation strata titles (MCSTs) to manage their estates.
The review includes helping MCSTs accumulate enough sinking funds, reducing consent thresholds for essential works, and strengthening self-governance frameworks.
As buildings in strata developments age, it is increasingly important for MCSTs to have adequate sinking funds for maintenance and improvement works, the Building and Construction Authority (BCA) said.
According to the authority, more than 1,000 of Singapore’s 3,750 strata developments are at least 30 years old.
Some ageing strata-titled developments have struggled to maintain adequate sinking funds to upkeep essential facilities such as lifts, which require retrofitting over their lifespan to meet modern safety standards, BCA added.
Ms Indranee said: "Today, many MCSTs only start collecting funds for lift replacement when the ageing lifts start to experience wear and tear and parts become obsolete.
"If the MCSTs do not have sufficient sinking funds, they will need to collect special levies from unit owners, which may not be an insignificant sum, and for which the owners may not be prepared.
"This can be avoided if the MCSTs start building up the funds earlier."
The authorities are exploring requiring MCSTs to submit and publish their financial information in a standard format.
This would make it easier for unit owners and prospective buyers to understand and track the financial health and sinking fund adequacy of the MCSTs.
Ms Indranee added that the authorities are studying measures to improve the safety and accessibility of buildings and infrastructure.
One area they are looking into is enhancing the safety of older lifts and escalators to keep pace with modern safety standards.
“We are also exploring providing co-funding support for select essential safety features to eligible private building owners and operators. We will share more details when ready,” she said.
In his speech, Minister for National Development Chee Hong Tat said the government is looking at how it can provide co-funding support for private estates in key upgrading works, particularly where it concerns safety and livability.
This will require "a combination of carrots and sticks", he added.
Beyond financial planning, the authorities are also exploring lowering resolution requirements for infrastructural upgrades, including essential facilities installations, senior-friendly installations and solar panel installations.
The government is also studying measures to prevent the gaming of voting systems in such properties, said Ms Indranee.
"We have received feedback on situations where a small group collects many proxy votes and controls decisions in the development. This may not necessarily reflect the best interests of the majority of owners," she added.
The authorities are considering further limiting the percentage of total proxies that can be held by each household and ensuring that MCST members undergo proper training.
"These changes aim to make estate management fairer and more efficient," Ms Indranee added.
BCA said the move will limit the accumulation of voting power through proxy collection.
In 2017, the Building (Strata Management) Act was amended to cap the total number of proxy votes a person can hold at general meetings, where resolutions are put to a vote.
Proxy votes are used when owners who are unable to attend a general meeting appoint someone else, using a form, to represent and vote on their behalf.
Under current restrictions, a person may be appointed as proxy for 2 per cent of the total number of strata lots in the development, or two lots, whichever is higher.
BCA has been engaging stakeholders on some of these proposed amendments since June 2025, through platforms such as focus group discussions.
The public consultation on the draft amendments to the Act will be conducted from Mar 9 to Apr 8 through the REACH platform.
Ms Indranee encouraged residents of strata developments to provide their feedback.
“This review will strengthen our strata management framework, to ensure that private residential developments remain well-maintained, accessible, and liveable,” she said.
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It is part of a comprehensive review to strengthen the Building (Strata Management) Act, which sets out the legal framework for management corporation strata titles (MCSTs) to manage their estates.
The review includes helping MCSTs accumulate enough sinking funds, reducing consent thresholds for essential works, and strengthening self-governance frameworks.
As buildings in strata developments age, it is increasingly important for MCSTs to have adequate sinking funds for maintenance and improvement works, the Building and Construction Authority (BCA) said.
According to the authority, more than 1,000 of Singapore’s 3,750 strata developments are at least 30 years old.
Some ageing strata-titled developments have struggled to maintain adequate sinking funds to upkeep essential facilities such as lifts, which require retrofitting over their lifespan to meet modern safety standards, BCA added.
Ms Indranee said: "Today, many MCSTs only start collecting funds for lift replacement when the ageing lifts start to experience wear and tear and parts become obsolete.
"If the MCSTs do not have sufficient sinking funds, they will need to collect special levies from unit owners, which may not be an insignificant sum, and for which the owners may not be prepared.
"This can be avoided if the MCSTs start building up the funds earlier."
The authorities are exploring requiring MCSTs to submit and publish their financial information in a standard format.
This would make it easier for unit owners and prospective buyers to understand and track the financial health and sinking fund adequacy of the MCSTs.
Ms Indranee added that the authorities are studying measures to improve the safety and accessibility of buildings and infrastructure.
One area they are looking into is enhancing the safety of older lifts and escalators to keep pace with modern safety standards.
“We are also exploring providing co-funding support for select essential safety features to eligible private building owners and operators. We will share more details when ready,” she said.
In his speech, Minister for National Development Chee Hong Tat said the government is looking at how it can provide co-funding support for private estates in key upgrading works, particularly where it concerns safety and livability.
This will require "a combination of carrots and sticks", he added.
Beyond financial planning, the authorities are also exploring lowering resolution requirements for infrastructural upgrades, including essential facilities installations, senior-friendly installations and solar panel installations.
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PROXY VOTES
The government is also studying measures to prevent the gaming of voting systems in such properties, said Ms Indranee.
"We have received feedback on situations where a small group collects many proxy votes and controls decisions in the development. This may not necessarily reflect the best interests of the majority of owners," she added.
The authorities are considering further limiting the percentage of total proxies that can be held by each household and ensuring that MCST members undergo proper training.
"These changes aim to make estate management fairer and more efficient," Ms Indranee added.
BCA said the move will limit the accumulation of voting power through proxy collection.
In 2017, the Building (Strata Management) Act was amended to cap the total number of proxy votes a person can hold at general meetings, where resolutions are put to a vote.
Proxy votes are used when owners who are unable to attend a general meeting appoint someone else, using a form, to represent and vote on their behalf.
Under current restrictions, a person may be appointed as proxy for 2 per cent of the total number of strata lots in the development, or two lots, whichever is higher.
PUBLIC CONSULTATION
BCA has been engaging stakeholders on some of these proposed amendments since June 2025, through platforms such as focus group discussions.
The public consultation on the draft amendments to the Act will be conducted from Mar 9 to Apr 8 through the REACH platform.
Ms Indranee encouraged residents of strata developments to provide their feedback.
“This review will strengthen our strata management framework, to ensure that private residential developments remain well-maintained, accessible, and liveable,” she said.
Continue reading...