Urgent Review Needed as Ageing Buildings and Funding Gaps Strain Malaysia’s Property Upkeep System

Rethinking Malaysia’s Building Maintenance: Experts Warn of Rising Risks Amid Ageing Properties. As Malaysia’s property stock matures, industry experts are sounding the alarm over growing funding shortfalls and outdated maintenance practices that threaten to erode asset values while imposing hidden costs on homeowners and investors. The warning comes at a critical time, with many high-rise condominiums in Kuala Lumpur and Selangor entering costly refurbishment cycles without adequate funds set aside for long-term upkeep.

In response to these challenges, Nippon Paint (Malaysia) Sdn. Bhd. (“Nippon Paint”) convened a high-level roundtable on the Sustainable Refurbishment of Existing Buildings, bringing together key voices from the Ministry of Housing and Local Government (KPKT), the Malaysian Institute of Property and Facility Managers (MIPFM), the Malaysian Institute of Architects (PAM), the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS), the Green Building Index (GBI), and the Royal Institution of Surveyors Malaysia (RISM). Discussions centred on the urgent refurbishment needs of Malaysia’s ageing buildings—particularly waterproofing and repainting—affecting properties in the 11–20 year bracket.

At the core of the issue is Malaysia’s outdated statutory framework, which requires only a 10% sinking fund contribution from property owners. According to MIPFM member PMGR SR Nageswaran Muniandy, this formula, set decades ago, is no longer sufficient to cover today’s rising costs. “The real challenge starts once a building hits 6–10 years, with waterproofing among the most common and costly issues. By the time properties are over 20 years old, modernisation or full upgrading is often needed. However, with sinking fund contributions capped at 10%, most management bodies can only afford the bare minimum,” he said.

The consequences of underfunding can be severe. Deferred repairs lead to worsening property conditions, lower property values, and reduced investor confidence. In many cases, limited funds push building owners toward low-cost, short-term fixes that fail to resolve the underlying problems. “Even the best waterproofing systems will fail if applied poorly or specified incorrectly. Without stronger standards and enforcement, new buildings can begin leaking within three to five years,” warned Aaron Ang, Senior Manager at Nippon Paint Malaysia.

Experts also criticised Malaysia’s largely reactive approach to property maintenance, where action is typically taken only after damage becomes visible—by which point repairs are more expensive, disruptive, and less effective. Ar. Sarly Adre Sarkum, past president of PAM and CEO of the Green Building Index, stressed the importance of preventive care. “Proper manuals, certified professionals, and enforceable standards can break this costly cycle. If we shift from reactive to preventive practices, we extend building lifespans and reduce long-term financial strain on owners,” he explained.

Waterproofing, in particular, was highlighted as a critical yet often misunderstood issue. While damp walls or peeling paint are frequently dismissed as cosmetic, panellists emphasised that these are early warning signs of deeper structural problems. Once ignored, leaks can compromise safety, damage structures, and dramatically increase costs over time. Nippon Paint has responded by introducing strict waterproofing procedures with certified applicators, periodic inspections, and warranties backed by independent certifications such as SIRIM and Green Label.

Beyond technical fixes, industry leaders agreed that Malaysia urgently needs policy reform. Proposals included revising the sinking fund formula to reflect modern costs, mandating maintenance manuals for new developments, and embedding Malaysian Standards such as MS1294 and MS1063 into the Uniform Building By-Laws (UBBL) to ensure consistency and compliance. Without regulatory backing, experts cautioned, best practices will remain difficult to enforce.

Despite these challenges, the panel noted that Malaysia’s refurbishment sector offers significant growth opportunities. With a rising share of ageing high-rises in urban centres, demand for high-quality refurbishment and preventive maintenance is set to grow. “Buildings are long-term assets. Poor upkeep doesn’t just inconvenience residents, it reduces property values and undermines confidence in entire neighbourhoods. A healthier refurbishment ecosystem benefits homeowners, investors and the wider economy,” said Ang.

As part of its commitment to strengthening the refurbishment ecosystem, Nippon Paint showcased its Total Coating & Construction Solutions (TCCS)—a holistic system covering drymix, waterproofing, and repainting. Designed to ensure compatibility, certified workmanship, and long-term warranties, TCCS provides durable protection while reducing financial burdens on property owners. Nippon Paint continues to expand this portfolio with solutions for roofs, wet areas, basements, water-retaining structures, and external walls, offering comprehensive protection against leaks and deterioration.

By convening regulators, professional bodies, and industry stakeholders, Nippon Paint reinforced the urgent need for collaborative action. As Malaysia’s property market matures, experts agree that only a shift toward sustainable refurbishment practices—supported by stronger regulations and higher standards—will protect building values, enhance community well-being, and future-proof the nation’s urban landscape.