I REFER to the comments of Gwen Yow of Klang, in “Serve on management committees” (The Star March 18). I do not agree that the maintenance fees should increase with the age of the building.
A Sinking Fund is there to provide for the need for major expenses such as lifts repairs/upgrade, re-painting of buildings, etc. The fund is kept separately in a fixed deposit account which earns interest.
The Strata Management Act 757 imposes a 10% Sinking Fund on top of the monthly maintenance service charge. Many developers have already set up this fund.
Is there any need to impose this on older developments whose purchasers had already paid a lump sum up front? This will be an extra financial burden for these groups of people.
I understand that many high-rise owners have objected to this additional collection at their AGMs recently. A management committee plays a very important role in strata management. The committee has to work closely with the property management.
It has to be effective and efficient to be able to deliver and respond to complaints from residents. A well managed estate can expect up to 95% service charge collection.
A good and experienced property manager is hard to find. It is time to organise and conduct some professional courses to train this group of people.
The Act 757 also provides for the setting up of a State Tribunal to handle all disputes arising from high-rise living.
MELVIN TAN
Penang
