Strata & Building Management
Why your maintenance charge rises when the minimum wage does
Security services are funded from the maintenance account under the Strata Management Act. Security is largely wages, and when the minimum wage rises, the maintenance charge moves. The minimum wage is now RM1,700 per month under the Minimum Wages Order 2024, effective 1 February 2025 for employers with five or more employees and professional services, and 1 August 2025 for all remaining employers, including micro-enterprises. The charge increase passes through a general meeting vote, meaning residents control how it is managed.
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Buyer action
| Best for | Buyers comparing a strata scheme against a guarded landed neighbourhood, and residents in a security-fee dispute. |
|---|---|
| Risk level | Medium |
| Buyer action | Send Lewis your building name, the charge you pay and what you are trying to decide, and he will tell you what to check first. |
Gates, roads and the law
This post works through security is usually the single largest line in a scheme's budget, and it is almost entirely wages. Model this before you buy. A disclaimer on a notice board does not decide liability; the duty owed and whether it was met does.
Where security funding comes from
Under the Strata Management Act, security services are funded from the maintenance account. For a joint management body, this is set out in s.23(3)(b); for a management corporation, in ss.50(3)(b) and 60(3)(b). The charge is paid by every proprietor unconditionally under s.52(1), ss.12(1) and 25(1). Security is labour-intensive, so the cost moves chiefly with wages. The minimum wage is now RM1,700 per month, effective from 1 February 2025 for employers with five or more employees and those in professional services, and from 1 August 2025 for all remaining employers including micro-enterprises.
Why the charge rises when wages rise
The charge rate is set by the management body at a general meeting. Under s.25(3) for a JMB and s.60(3) for an MC, the rate is determined by the body at a general meeting. When the wage bill rises — whether because of a minimum wage increase or a workforce increase — the body must propose a new charge at an AGM. The proprietors vote on it. This is the mechanism by which wage inflation reaches ownership: not as an automatic pass-through, but as a resolution put to the proprietors to approve or reject.
Reading the accounts and asking the right question
The audited accounts must be laid before each AGM and circulated with the notice at least 14 days beforehand under the Second Schedule to the Act. Look at the security line item and ask: what is the cost per unit per month, and how has it moved over the last three years? If there is a sharp jump, ask whether it is due to a wage increase, a rise in the number of guards, or something else. A well-run body will have budgeted for the wage rise and will present the new charge clearly. The AGM is where you get transparency and where you can vote on the proposal.
Verify this against your own building
Ask what the security line costs per unit per month and how it has moved over three years. If the scheme is on public roads, ask what happens when a household stops paying — the answer tells you how stable the arrangement is.
Buyer checklist
A joint management body funds security from the maintenance account under s.23(3)(b) of the Strata Management Act; a management corporation does so under ss.50(3)(b) and 60(3)(b). The effective minimum wage of RM1,700 per month came into force from 1 February 2025 for five or more employees and professional services, and 1 August 2025 for all remaining employers. The charge rate is set by the body at a general meeting under s.25(3) for a JMB and s.60(3) for an MC, so when the wage bill rises, a resolution is required to approve the new charge. Your lever is the AGM: attendance, questions about security costs, and scrutiny of audited accounts.
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| 1 | Attend the AGM and request a copy of the audited accounts at least 14 days in advance. |
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| 2 | Locate the security line item in the accounts and note the cost per unit per month. |
| 3 | Compare the current charge to the prior two years and ask why it has moved. |
| 4 | Ask whether the security increase is due to the minimum wage rise and by how much. |
| 5 | Vote on the charge proposal at the AGM and keep a record of the resolution for your files. |
Common questions
Where does the money for security come from?
From the maintenance account — s.23(3)(b) for a joint management body, s.50(3)(b) and s.60(3)(b) for a management corporation — paid by every proprietor under s.52(1).
What is the current minimum wage?
RM1,700 per month, effective from 1 February 2025 for employers with five or more employees and professional services, and from 1 August 2025 for all remaining employers including micro-enterprises. This was set by the Minimum Wages Order 2024.
Can the management body raise the security charge without a vote?
No. The charge rate is set by the body at a general meeting under s.25(3) for a JMB and s.60(3) for an MC. A resolution must be approved by proprietors.
How can I check whether a security increase is justified?
Ask for the audited accounts at least 14 days before the AGM. Compare the security cost per unit per month over three years. Ask the body whether the increase is due to wages, more guards, or other factors. The Second Schedule to the Act requires the accounts to be circulated with the AGM notice.
Lewis Chong
REN 69566 · IQI GlobalProperty advisor helping KL, JB, and Penang buyers make data-backed property decisions.
Related reading
Use one buyer framework across different news.
How your maintenance charge is actually calculated — share units, not floor area
Malaysian maintenance charges are apportioned by allocated share units under the Strata Management Act 2013, not by floor area — s.8(1) sends the computation to the First Schedule, and s.12(3), s.25(3) and s.60(3) apply it through the developer, JMB and MC periods. Here is how to read your own bill and when a different rate is lawful.
Lewis Conclusion
If you only remember one thing: ask for your share unit figure, not your square footage. It is the number that sets your bill and your vote for as long as you own the unit, and it is printed on documents you are entitled to see.
The sinking fund explained
The sinking fund is a statutory capital reserve set at a minimum of 10% of the maintenance charge under ss.12(4), 25(4), 52(3), 61(3) and 68(3) of Act 757. It may only be spent on capital items — painting, replacing fixtures, upgrading common property — and a general meeting may raise the rate but never drop it below 10%.
Lewis Conclusion
Ask two questions before you buy into any high-rise: what is the sinking fund balance, and when were the lifts, the roof and the external paint last done. If the balance is small and those items are old, the shortfall is coming to you as a special levy — it is only a question of which year.
What actually happens if you stop paying maintenance charges
Stopping payment of maintenance charges triggers a statutory sequence, not a negotiation: a Form 11 notice from a JMB (s.34(1)) or Form 20 from a management corporation (s.78(1)) giving not less than 14 days, interest capped at 10% per annum, then a debt claim, a warrant of attachment over your movable property, or criminal prosecution.
Lewis Conclusion
Withholding charges is the one protest that cannot work, because arrears also disqualify you from the committee and from voting — the exact levers you would need to fix whatever you are protesting about. Pay under protest, then fight it at the tribunal or the AGM where you still have standing.
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Attend the AGM and request a copy of the audited accounts at least 14 days in advance.
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Locate the security line item in the accounts and note the cost per unit per month.
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Compare the current charge to the prior two years and ask why it has moved.
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Ask whether the security increase is due to the minimum wage rise and by how much.