International Journal of Applied Engineering Research

ISSN 0973-4562 Volume 10, Number 6 (2015) pp. 15759-15776

© Research India Publications
http://www.ripublication.com

Building Maintenance Issues: A Malaysian Scenario

for High-Rise Residential Buildings

S.R.H. ABD-WAHAB1, A. SAIRI2, A.I. CHE-ANI1, N.M. TAWIL1, S. JOHAR1

1
Department of Architecture, Faculty of Engineering and Built Environment
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor MALAYSIA
2
Building Control Department, Kajang Municipal Council
43000 Kajang, Selangor MALAYSIA
siti.rashidah.hanum@gmail.com, asairi@mpkj.gov.my, adiirfan@gmail.com,
nmtawil@gmail.com, suhana1102@yahoo.com

Abstract

High-rise residential buildings consist of separate multiple housing units that share the
same lot of land. This type of building provides basic amenities, including covered
parking, garbage chute, elevators, 24-hour security system, and swimming pool.
Residents who live in high-rise residential buildings are required to share the entire
basic amenities provided by the management corporation and are expected to follow
rules and regulations to maintain the good condition of facilities. Residents and the
management both face different issues on building maintenance. Accordingly, this
paper aims to address the parameters of building maintenance issues in high-rise
residential buildings from 2005 to 2013. The issues are classified into three main
categories, namely, maintenance management fund, maintenance management
efficiency, and maintenance management satisfaction. This classification is used to
determine the issues on building maintenance management faced by residents and the
Management Corporation in high-rise residential buildings.

Key Words: facility management; high-rise residential; housing management;

sinking fund; strata property

1 Introduction
Real estate is a field that is always discussed in newspapers and electronic media. The
issues discussed are regarding the increasing housing price and service maintenance
management in high-rise buildings. Increase in housing price is attributed to the
increase of price land, particularly in urban areas. The current scenario causes the
15760 S.R.H. ABD-WAHAB et al

price of landed properties to be higher compared with non-landed properties [40].

Therefore, the yearly demand of constructing high-rise buildings is higher in urban
areas than in rural areas. Kosmo Newspaper (25 March 2012) reported that the
housing price in urban areas, including Kuala Lumpur and Selangor, dramatically
increased. A 2000 square feet condominium in Bangsar was sold at RM 2.4 million
per unit. Meanwhile, the price of a semi-detached house in Sri Hartamas was pegged
at up to RM 1.5 million per unit. A terrace house in Cheras was sold at a starting price
of RM 500,000 per unit. The scenario in which high-rise buildings are demanded in
urban areas influence the outskirt areas of Klang Valley, including Kajang, Bangi,
Sungai Buloh, Klang, and Rawang, for the past five years. The same scenario also
happened in other countries, including Australia (27.5%), Singapore (84%), and Hong
Kong (95%), and has influenced the demand of high-rise residential buildings in these
countries [10]. In Malaysia, the National Property Information Center reported that
the demand on the existing stock of supply for high-rise residential units from 2005 to
2012 (refer to Figure 1) increased. Figure 2 shows that Selangor (40.9%) achieved the
highest percentage of existing stock of supply for high-rise residential units, followed
by Wilayah Persekutuan Kuala Lumpur (22.2%), Johor (7.3%), and Pulau Pinang
(15.2%). The remaining states obtained an average of 1.39% [27].
The increase in demand for high-rise residential buildings is influenced by the
present lifestyle of people in the city [49]. Housing price and city propagation are
factors that influence the choice of people to live in condominiums or apartments.
Facilities in high-rise residential buildings also attract many people in the city to have
this type of housing scheme. Living in the city is not easy because of traffic jam and
its distance from one’s primary address. Kosmo Newspaper (3 September 2012)
reported that pleasure, convenience, and integrated lifestyle, including distance to
workplace, leisure center, public transportation, and dining options, are the factors
considered by young people when choosing their residency. In this event, high-rise
buildings, including condominiums and apartments, are the best options to live in
because they are equipped with all the integrated facilities. Figure 3 and 4 show that
34.95% of Malaysians prefer to live in apartments and condominiums, 28.02% opt to
stay in flats, 2.53% choose to dwell in service apartments, and 0.02% prefer Small
Office Home Office (SOHO) [27]. SOHO obtained the lowest percentage because the
price of houses in SOHO is higher than that of other types of high-rise buildings, and
not all people can afford the former. SOHO is a new type of high-rise building that
was introduced in Malaysia in 2012. SOHO is becoming a popular location for
businessmen to set up their offices because it is integrated with commercial and
residential units in one building.
Building Maintenance Issues: A Malaysian Scenario 15761

Figure 1 Summary of the existing stock of supply of high-rise residential units in

Malaysia from 2005 to 2012 [27].

Figure 2 Percentage of existing stock of supply of high-rise residential units in

Malaysia from 2005 to 2012 [27].

Figure 3 Summary of existing stock of high-rise residential building by type from

2005 to 2012 [27].
15762 S.R.H. ABD-WAHAB et al

Figure 4 Percentage of existing stock of high-rise residential building by type

from 2005 to 2012 [27].

2 Building Maintenance Management

High-rise buildings show the rapid development in urban cities influenced by the
housing price factor. High-rise buildings have their own attractions, including
integrated facilities near one’s workplace. For instance, Mass Rapid Transit (MRT)
and Light Rail Transit (LRT) stations and shopping complexes are built near high-rise
buildings. This type of building also provides basic amenities, including a 24-hour
security system, swimming pool, gymnasium, shops, clinic, and recreation area. Thus,
high-rise buildings provide ultimate comfort to its residents by making all the
mentioned facilities available within their vicinity. However, all these facilities need
to be maintained according to its maintenance schedule to ensure that they are always
in good condition. Previous studies mentioned that high-rise residential buildings
must have one body to manage these facilities provided. In Malaysia, Management
Corporation (MC) is a body that is responsible in managing and maintaining all the
common properties of high-rise buildings [52]. Figure 5 shows the parties involved in
the organization of MC. The residents, members of MC, and management agents are
included in the party [8, 17], in which all parties are responsible in managing high-rise
buildings toward efficiency.

Figure 5 Relationship between parameters of building maintenance management

through the management agent, members of Management Corporation, and
residents.
Building Maintenance Issues: A Malaysian Scenario 15763

The management of high-rise buildings in Malaysia is not different from that

of other countries. The only difference is in terms of the rules and legislation. For
instance, Malaysia uses the Strata Management Act 2013, whereas Hong Kong
employs the Building Management Ordinance (BMO). BMO describes the roles and
responsibilities of each party involved in the management of high-rise buildings.
BMO is important in preventing any party to abuse power and in resolving disputes
between parties while managing high-rise buildings.
Malaysia previously used the Building and Common Property (Maintenance
and Management) Act of 2007 or Act 663 to manage high-rise buildings. However,
this act is no longer applicable because it cannot settle the present issues of high-rise
buildings. Act 663 had many weaknesses, including its failure to clearly state the
division of tasks and responsibilities between developers and buyers at the initial
period of high-rise building management system. Act 663 also failed to state a clause
that specifies the penalty or actions to be imposed on both parties when violations of
sales and purchase agreement are committed. Moreover, Act 663 did not determine
the specific period for the developer to maintain and manage high-rise buildings after
vacant possession until strata titles were registered. In this event, some developers
took the advantage and delayed the registration of the strata titles of high-rise
buildings so they could impose any regulations and fees on the building management
system during this period, thus leading to resident dissatisfaction. Daily News (12
October 2011) reported that Act 663 must be amended to solve the issues on the strata
titles of high-rise buildings in Malaysia. The Ministry of Housing and Local
Government (in Malay: Kementerian Perumahan dan Kerajaan Tempatan) mentioned
that the amendment of Act 663 was intended to protect the interests of property
buyers. Act 757 or Strata Management Act 2013 was established on 8 February 2013
to replace Act 663. Act 757 specifies that the developer must apply for a building
strata title for high-rise buildings within six months after the buyers sign the sales and
purchase agreement. This specific ordinance, which is an improvement of Act 663,
enables the buyers to acquire the building strata title after receiving all the home
purchase documents, including the certificate of fitness occupation. Figure 6 shows
the new timelines for the registration of the strata title of high-rise buildings, as stated
in Act 757.
Another amendment was made in Act 757 to enhance the weakness of Act
663. Specifically, Act 663 used different types of account names for each different
management body. The maintenance account name has three types, namely, building
maintenance account (under developer management), building maintenance fund
account (under Joint Management Body (JMB) management), and maintenance fund
account (under MC management). Meanwhile, the common property account name
has two types, namely, sinking fund account (under developer and JMB management)
and special account (under MC management). Using different types of account name
led to financial management arrears because the residents felt that many payments
must be made. Therefore, many issues, including the refusal of residents to pay for the
maintenance fund, arose. To solve such issues, Act 757 emphasizes the use of only
two types of account names in managing maintenance funds. Specifically, the names
to be used are the maintenance account and the sinking fund account. Act 757 is eyed
15764 S.R.H. ABD-WAHAB et al

to help in solving the problems faced by the residents and the management body of
high-rise buildings.

3 Issues on High-Rise Residential Buildings

Issues on high-rise residential buildings have been increasing for the past few years.
The electronic media, newspapers, and previous research had a fair share of this
report. The main issue on high-rise residential buildings is commonly on their
efficiency of building maintenance management. Previous research mentioned that the
problems being faced by residents who live in high-rise residential buildings are low
maintenance of management systems [10, 43, 52, 9, 16, 46, 37, 23, 18], failure of
maintenance agents to conduct maintenance work regularly and diligently [10, 30, 1,
38, 12, 51, 7, 50, 43, 52, 21, 9, 24, 38, 16, 15], insufficient guideline in managing
high-rise buildings [30, 1, 12, 43, 24, 16, 15], excessive use of common property [10],
and dissatisfaction of residents toward service quality of building maintenance
management [30, 5, 21, 51, 9, 16]. These problems show that the issues on building
maintenance management in high-rise buildings are yet to be solved. Utusan Malaysia
(9 September 2011) reported that the residents of Jade Tower Block in Bukit Indah
Ampang complained that the elevators in their apartment often break down, especially
during heavy rain. This problem occurred more than three times a week. Residents
also claimed that the maintenance agents did not carry out their works properly. Every
time the residents submitted the complaint to the management, the same excuse was
given. The management said the problem on the elevator was already under
investigation or they were still waiting for a full report from the maintenance agents.
Residents also asked help from the JMB to address this issue. Other than the issue on
maintenance efficiency, maintenance fund is also a problem in managing high-rise
residential buildings. Argument on maintenance fund is attributed to the refusal of
residents to pay for it that leads to the problems of maintenance efficiency [9]. Harian
Metro (30 May 2011) reported that only 20% to 40% of residents residing in low- and
medium-cost high-rise housing scheme within Kuala Lumpur settled maintenance
fees each time it was collected. The remaining failed to pay for the maintenance fees.
As a result, Dewan Bandaraya Kuala Lumpur suffered a loss of RM 50 million a year
to conduct maintenance works in high-rise buildings. The issue on maintenance funds
in high-rise buildings is also experienced by other developing countries, including
Hong Kong, Taiwan, and South Korea.
Building Maintenance Issues: A Malaysian Scenario 15765

Figure 6 Timeline process to register strata titles for high-rise buildings before
and after implementation of Act 757 and Act 318 (Amended).

4 Research Method
This paper aims to highlight the parameters of building maintenance management
issues in high-rise residential buildings. Analysis was conducted through the previous
studies from 2005 to 2013. This study provides an advance platform to observe the
parameters of building maintenance management issues in high-rise buildings into
three main categories, namely, maintenance management fund, maintenance
management efficiency, and maintenance management satisfaction. The flow of study
is shown in Figure 7.
15766 S.R.H. ABD-WAHAB et al

Figure 7 Flow of the study

5 Analysis and Discussion

This study provides an advance platform based on the gathered data from 2005 to
2013 to acquire the parameter issues of building maintenance management in high-
rise buildings. On the basis of Tables 1, 2, and 3, the benchmarking platforms are
categorized into maintenance management fund, maintenance management efficiency,
and maintenance management satisfaction.
On the basis of the analysis, the problems of building maintenance
management in high-rise residential buildings increased yearly. The highest problems
were in the parameter issues on maintenance management efficiency that had about
54 cases. The parameter issues on maintenance management fund ranked second with
about 43 cases, and the parameter issues on maintenance management satisfaction
came in last with 13 cases. Figure 8 shows the relationship existing among these three
parameters. When the parameter issues of maintenance management fund increased,
Building Maintenance Issues: A Malaysian Scenario 15767

the parameter issues of maintenance management efficiency and maintenance

management satisfaction also increased.

Figure 8 Relationship between maintenance management fund, maintenance

management efficiency, and maintenance management satisfaction from 2005 to
2013.

Table 1 Parameters of issues on maintenance management fund from 2005 to

2013

AUTHORS ISSUES YEARS TOTAL

2005 2006 2007 2008 2009 2010 2011 2012 2013
PARAMETER 1: MAINTENANCE MANAGEMENT FUND
[10, 45, 43, 52, Maintenance funds 2 1 3 2 2 1 1 12
41, 42, 47, 16, are inadequate to
39, 46, 48, 2] cover maintenance
cost
[45, 52, 43, 41, Level to raise 1 1 3 2 1 8
42, 24, 47, 32] maintenance fund is
low
[24, 28, 46] No specific measures 1 1 1 3
to enforce residents
to pay for
maintenance fees
[10, 45, 52, 43, Refusal of residents 2 2 2 1 1 8
41, 42, 47, 39] to pay for
maintenance fees
[43, 41, 42] No specific standard 2 1 3
to determine the
amount of
maintenance fees
15768 S.R.H. ABD-WAHAB et al

[52, 43, 41, Lack of awareness 2 2 4

42] among residents on
the importance of
maintenance fees in
building maintenance
management
[45, 52, 41, Maintenance charges 2 1 1 4
42] are not comparable
with the facilities
provided
[45, 52, 43, 41, Maintenance charges 2 2 2 1 7
42, 47, 39] are not comparable
with the service
quality provided
[45, 39] Residents request to 1 1 2
know the
transparency flow of
maintenance fund
allocation
[33, 1] None or inadequate 2 2
maintenance funding
from public sector
[4] Inefficient 1 1
management will
increase the
maintenance cost
TOTAL 3 2 1 0 9 17 12 8 2 54

Table 2 Parameters of issues on maintenance management efficiency from 2005

to 2013.

AUTHORS ISSUES YEARS TOTAL

2005 2006 2007 2008 2009 2010 2011 2012 2013
PARAMETER 2 : MAINTENANCE MANAGEMENT EFFICIENCY
[1, 24, 46, 47] Lack of rules and 1 1 1 1 4
regulation on building
maintenance
management system
[10, 46] Residents overuse 1 1 2
common property
[10] Management 1 1
committees face
problems to fill
vacancy in resident
organization
Building Maintenance Issues: A Malaysian Scenario 15769

[20, 21, 42, Lack of information 1 1 1 1 4

36] regarding
measurement of
service quality
[13, 46] Lack of information 1 1 2
regarding
maintenance
provision
[30, 20, 12, 9, Many complaints on 1 1 1 1 1 5
11] the service quality of
management
[31, 46] Lack of resident’s 1 1 2
knowledge on
management of
residential property
[42] No response from 1 1
residents to
emergency repairs
[1, 47, 13, 46] No standard guideline 1 1 1 1 4
in property
management
[38] Lack of emphasis on 1 1
the requirement for
future maintenance
[21, 42, 46, Lack of management 2 1 1 4
15] agent’s professional
knowledge and skills
[16, 13] Incomplete and non- 1 1 2
systematic building
maintenance
management
documents
[16, 46] Insufficient 1 1 2
maintenance
management planning
at the early stage of
constructing high-rise
buildings
[30, 50, 21, 9, Slow and inefficient 2 1 3 3 9
41, 42, 19, 46, maintenance
11] management
TOTAL 0 10 4 0 6 9 6 4 4 43
15770 S.R.H. ABD-WAHAB et al

Table 3 Parameters of issues on maintenance management satisfaction from year

2005 to 2013.

AUTHORS ISSUES YEARS TOTAL

2005 2006 2007 2008 2009 2010 2011 2012 2013
PARAMETER 3: MAINTENANCE MANAGEMENT SATISFACTION
[10] Low attendance rate in 1 1
general resident
organization meeting
[24, 42, 46, Lack of interaction 2 2 4
15] between management
body and resident
organization
[1, 24, 51, Resident’s involvement 1 1 1 2 5
15, 22] in building maintenance
management remains at
low level
[16] Residents are not 1 1
satisfied with service
quality of building
maintenance
management
[47] Lack of belongingness 1 2
toward common
property, vandalism,
and individualistic
attitude among
residents
[7] Tenant-residents are not 1 1
entitled to any
involvement in building
maintenance
management
TOTAL 1 3 0 0 2 2 2 2 1 13

5.1 Maintenance Management Fund

Maintenance fund is an amount of money collected by MC to fund the maintenance
works in high-rise residential buildings. Maintenance works are important to be
executed to ensure that the building and its facilities are in good condition. However,
the lack of awareness among residents on the importance of maintenance fund results
in inefficient maintenance works. The source in maintaining high-rise residential
buildings comes from the maintenance fund collected from the residents [52]. If the
maintenance fund is inadequate, the efficiency of maintenance work is affected, and
maintenance work may not be done regularly and diligently. Previous researchers
agreed that the reluctance of residents to pay for maintenance fees would defer and
suspend the maintenance works [52, 9, 18, 23, 37, 46, 16, 41, 43, 3]. The residents
refused to pay for the maintenance fees because they claimed that the charges were
Building Maintenance Issues: A Malaysian Scenario 15771

not realistic and the allocation of maintenance fees collected was doubtful and not
transparent [52, 9, 41, 43]. For example, residents must pay for maintenance fees to
enjoy the gymnasium’s management services [52]. The other issue on maintenance
fund is the lack of standard rules and regulations to determine the maintenance
charges for high-rise buildings. Thus, management bodies take advantage by
increasing the maintenance charges to obtain additional money [43].
To overcome the problems of outstanding maintenance fund, the residents
must pay for lump sum deposit when buying their house [43]. The lump sum deposit
is the sum of housing price, which includes the sum of maintenance fund for the
housing unit. According to this payment scheme, residents pay for the maintenance
fees up to the repayment loan. The advantage of this model is that the management
will not suffer from the lack of maintenance fund to manage all facilities in high-rise
buildings. The study found that the elements of housing price and maintenance fund
had a linear function with slope of 0.11 or 11%. Approximately 70% of residents
agreed that maintenance fees must be included in the housing price to avoid
difficulties in its collection in the future. However, about 80% of the management
body did not agree with this method although they could perceive the benefits they
could obtain. Accordingly, the lump sum deposit is a method designed to benefit both
the residents and the management body in high-rise buildings.
The study done by [33] agreed with the method in [43]. They also proposed a
plan to encourage the advance payment of maintenance fund for apartment buildings
in Korea, in which the fees are to be collected at the early stage of construction. They
claimed that this payment scheme could overcome the issue of outstanding
maintenance fees in high-rise buildings in Korea. All residents living in a high-rise
building must be aware of the importance of paying maintenance fees to ensure
building sustainability.

5.2 Maintenance Management Efficiency

Maintenance management efficiency refers to the maintenance work conducted, in
which the objective of the amenities or facilities is successfully achieved. For
example, the elevator that is regularly and diligently maintained always functions
properly. In this event, the maintenance work on the elevator is done efficiently.
Basically, facilities management includes maintenance management and resident
satisfaction, which must be managed effectively [8]. Maintenance works that do not
follow the maintenance schedule are categorized as inefficient and will result in
increased maintenance cost [48]. The aspect of service quality can be used as basis to
determine the effectiveness of maintenance management [8]. Service quality and
resident satisfaction must be observed regularly to ensure that the services meet the
standard requirements. This statement coincides with the idea of [20], who mentioned
that low service quality and low level of resident satisfaction lead to the
ineffectiveness of maintenance management works. The low quality of maintenance
management services affects the effectiveness of the maintenance works done [52, 9,
21, 16, 43]. Therefore, the functions and performance of the facilities decrease [16,
52, 38, 12, 1]. The low quality of maintenance management services also results in the
objections of residents. Particularly, residents may complain that the performance of
15772 S.R.H. ABD-WAHAB et al

the facilities provided are not comparable with the fees they pay every month to the
management [52, 9, 16, 43].
Another issue affecting the maintenance management effectiveness is the lack
of awareness among residents to be involved in the organization’s activities at their
place [16, 51, 7]. The involvement of residents in the organization is the best way to
settle the problem of maintenance management effectiveness [10]. Residents can meet
and discuss with the management to solve the problem in maintenance management.
Documents regarding maintenance management that are not systematically stored also
lead to the problem of maintenance management efficiency. The problem occurs
when the management changes and when the information on the maintenance work
done is not updated because no records are found [16, 52, 1]. Thus, MC, residents,
and management agents must cooperate with one another to enhance the maintenance
management efficiency in high-rise buildings.

5.3 Maintenance Management Satisfaction

Maintenance management efficiency can lead to maintenance management
satisfaction among residents in high-rise buildings. The management body and
residents must cooperate with one another to achieve maintenance management
satisfaction [30]. Nowadays, residents always blame the management when they are
not satisfied with the maintenance work done. Residents do not realize that to achieve
maintenance management satisfaction, they should also play their role in the
management system. For example, residents should pay maintenance fees on time to
avoid delay in maintenance work. They should also participate in activities organized
by the management or resident organizations. Residents should also look after their
common properties, including the swimming pool, playground, and gymnasium,
which belong to their place. Residents should not leave their things unattended in
public areas, including the corridor, staircase, and other places that will make the
maintenance work difficult [21, 16, 51, 31, 5]. Therefore, awareness among residents
to guard their property is important to achieve maintenance management satisfaction
in high-rise buildings. Noor agreed that knowledgeable people could manage their
property well than those who are not knowledgeable [31]. The level of knowledge on
management among residents in high-rise buildings in Johor Bahru reached over 50%.
This finding indicates that the residents understand how to efficiently manage their
common property at their place [31]. Residents who are involved in management
activities in high-rise buildings are more satisfied with the quality of services
provided at their place [5]. A significant relationship was found between resident
involvements in management activities and maintenance management satisfaction.
Thus, maintenance management fund, maintenance management efficiency, and
maintenance management satisfaction are correlated with one another in ensuring the
sustainability of high-rise buildings.

6 Conclusions
High-rise buildings are residential buildings that require much attention in building
maintenance. The facilities provided in high-rise buildings attract people to live in such
Building Maintenance Issues: A Malaysian Scenario 15773

place. These facilities must be maintained properly. Without proper maintenance

management, the amenities and facilities of these buildings cannot function well. The MC
needs to ensure that the facilities are properly managed and maintained according to the
design standard.
Many issues on the maintenance of high-rise buildings were reported in electronic
media and previous research. The fees collected for maintenance is an obvious problem in
managing high-rise buildings. Inadequate maintenance fees may result in inefficient
maintenance and low level of service satisfaction among residents. The residents should
cooperate with MC by paying the maintenance service charge. However, fee collection is
not easy when it comes to low- and medium-cost housing complexes. Suitable approaches
are needed to effectively resolve these issues in the long run. Thus, this study addresses
the parameters of building maintenance issues in high-rise residential buildings from
2005 to 2013. The issues are classified into three main categories, namely, maintenance
management fund, maintenance management efficiency, and maintenance management
satisfaction. These categories identify the problems faced by the residents of high-rise
buildings. Accordingly, proper maintenance management is important to help the
management of high-rise buildings achieve sustainability.

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