A service charge increase or special levy is only lawful if it follows the correct process — AGM approval, proper budget, share-unit basis. If the process was wrong, you can challenge it.
General guidance only — not legal advice. Strata management is governed by the Strata Management Act 2013 (Act 757) and the Strata Management (Maintenance & Management) Regulations 2015. For disputes consult your COB office or a qualified Malaysian lawyer. Renovating a strata unit? Ask us →
A service charge rate or special levy is only legally valid if it was approved at a general meeting (AGM or EGM) with the requisite resolution, supported by a proper annual budget, and calculated on a share-unit basis. An increase announced by management circular without a meeting vote is unlawful. Your challenge routes are: (1) object at the AGM, (2) complain to the COB, (3) file at the Strata Management Tribunal. You must continue paying the old rate pending the challenge; do not stop paying entirely.
Under Sections 21 and 25 of the Strata Management Act 2013, the management body (JMB or MC) must:
If management issues a notice stating the rate has increased — without holding an AGM that approved a new budget — that increase is not lawful. (Source: SMA 2013, ss. 21, 25; asklegal.my, "In Malaysia, what can you do if your condo management increases the maintenance fee?".)
A special levy is a one-off or short-term charge imposed on top of the regular service charge, typically to fund a major repair or capital project (e.g., roof replacement, lift overhaul) when the sinking fund is insufficient. Under the SMA 2013:
A special levy imposed by circular, committee resolution or management notice — without a properly convened and quorate general meeting — is procedurally invalid. (Source: SMA 2013; Low & Partners, "Strata Management Act 2013 — Part 3"; JMBMalaysia.org, "Service Charges Under Strata Title Property in Malaysia".)
| Scenario | Lawful? | What you can do |
|---|---|---|
| Rate increased after AGM vote approving new budget | Yes — if process was correct | Attend future AGM; vote against; request budget breakdown |
| Rate increased by management circular without AGM vote | No | Challenge via COB or Tribunal; pay old rate pending outcome |
| Special levy approved at properly convened general meeting with stated purpose and amount | Yes | Request supporting quotations; vote against if unjustified |
| Special levy imposed by committee resolution or circular, no general meeting held | No | Challenge via COB or Tribunal; withhold the levy portion pending challenge while paying regular charge |
| MC charging different rates to different parcel types without lawful basis | No (single-rate rule applies) | Challenge via Tribunal; cite single-rate principle |
You have a legitimate challenge if any of the following apply:
For related context, see our guide on the special levy in strata Malaysia → and on what happens to defaulters →.
The AGM is your first and most direct forum. To use it effectively:
(Source: SMA 2013, ss. 21, 25; Low & Partners, "Strata Management Act 2013 — Part 2".)
If the charge increase or levy was imposed without proper AGM approval — or if the management body refuses to produce accounts — you can lodge a formal complaint with the Commissioner of Buildings (COB) under your local authority. The COB has the power to:
COB offices are administered under KPKT (Kementerian Pembangunan Kerajaan Tempatan / Ministry of Local Government Development). Contact details for your local COB office are on the KPKT website. (Source: SMA 2013, ss. 8–16; JY Ko Advocates & Solicitor, "Ultimate Guide to the Strata Management Act 2013".)
If the charge or levy was unlawfully imposed and management refuses to remedy it, file a claim at the Strata Management Tribunal. The Tribunal can:
Filing fee is low (RM100–RM200), no lawyers required, and claims are capped at RM250,000. Awards are binding and enforceable like High Court orders. (Source: SMA 2013, Part 11; MahWengKwai & Associates, "10 Things to Know About the Strata Management Tribunal"; JMBMalaysia.org, "How to Make a Claim at the Tribunal".)
See our full Strata Management Tribunal guide → for the filing procedure, required documents and what to expect at the hearing.
| Step | Action | Where / how |
|---|---|---|
| 1 | Continue paying the original service charge | Do not stop paying entirely — avoid becoming a defaulter while the challenge is active |
| 2 | Request the AGM minutes and annual budget in writing | Written request to management; owners are entitled to inspect under the SMA |
| 3 | Verify whether a general meeting was held and properly convened | Check the minutes; verify notice was given, quorum was met, item was on the agenda |
| 4 | Write a formal objection letter to management | State the procedural defect; request a revised process or refund; keep a copy |
| 5 | Organise other owners | Collective action via WhatsApp group or owners’ committee; strength in numbers |
| 6 | Lodge complaint with COB | Your local authority COB office; provide the objection letter and supporting evidence |
| 7 | File at the Strata Management Tribunal | If management refuses to comply or refund; low cost, no lawyer required |
Under the SMA 2013 and the Strata Management Regulations 2015, every owner has the right to:
If management refuses any of these, that refusal is itself a ground for a COB complaint or Tribunal claim. For broader governance issues, see our JMB guide →.
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