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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).<\/p>\n
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.\u00a0<\/p>\n
The review includes helping MCSTs accumulate enough sinking funds, reducing consent thresholds for essential works, and strengthening self-governance frameworks.<\/p>\n
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.<\/p>\n
According to the authority, more than 1,000 of Singapore\u2019s 3,750 strata developments are at least 30 years old.<\/p>\n
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.<\/p>\n
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.\u00a0<\/p>\n
“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.\u00a0<\/p>\n
“This can be avoided if the MCSTs start building up the funds earlier.”<\/p>\n
The authorities are exploring requiring MCSTs to submit and publish their financial information in a standard format.<\/p>\n
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.<\/p>\n
Ms Indranee added that the authorities are studying measures to improve the safety and accessibility of buildings and infrastructure.<\/p>\n
One area they are looking into is enhancing the safety of older lifts and escalators to keep pace with modern safety standards.\u00a0<\/p>\n
\u201cWe 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,\u201d she said.\u00a0<\/p>\n
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.\u00a0<\/p>\n
This will require “a combination of carrots and sticks”, he added.<\/p>\n
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.<\/p>\n<\/div>\n