Sabah passes ‘long overdue’ reforms to modernise strata management and subsidiary title processes

KOTA KINABALU, April 30 — The Sabah State Legislative Assembly today passed two Bills aimed at overhauling the state’s property and housing governance framework particularly for condominiums or buildings with shared common areas.

The Assembly approved the Building Management Enactment 2026 and the Land (Subsidiary Title) Enactment 2026, both designed to modernise how strata developments are managed, improve accountability and streamline the issuance of subsidiary titles amid rapid urban growth in the state.

Tabling the Building Management Bill, State Local Government and Housing Minister Datuk Ariffin Arif said the existing legal framework under the Land (Subsidiary Title) Enactment 1972 was not comprehensive enough and had not been updated to current needs.

“There are issues such as delayed establishment of Management Corporations, weak financial management including maintenance and sinking funds, lack of transparency and inadequate regulatory control during the interim management period,” he told the House.

Ariffin said the new law seeks to address these gaps through a more structured governance system, including the establishment of a Building Commissioner, stricter financial reporting requirements, and a mandatory timeline for developers to hand over management to property owners.

The Bill also introduces a tribunal for building management disputes, with the objective to ensure a more efficient, transparent and accountable building management system that protects the interests of owners and buyers.

Meanwhile, the Land (Subsidiary Title) Enactment 2026, tabled by Assistant Minister to the Chief Minister Datuk Isnin Aliasnih, introduces a broader and more modern legal framework governing the subdivision of buildings and land into subsidiary titles.

The new law expands beyond the 1972 Enactment by covering not only buildings but also land with multiple structures, reflecting more complex and mixed development models in Sabah today.

It also restructures the legal framework into eight comprehensive divisions, introduces electronic land registers, strengthens documentation requirements, and allows for provisional subsidiary titles to accommodate phased developments.

The enactment further tightens enforcement provisions and imposes heavier penalties for non-compliance, including fines of up to RM1 million for failure to apply for subdivision within the stipulated period.

Both Bills were passed after debate in the House and were largely lauded and welcomed by both sides of the political divide.

Lawmakers described the reforms as long overdue and necessary to address long-standing inefficiencies in strata management, improve investor confidence, and safeguard the interests of thousands of property owners in the state.