The Penang Island City Council (MBPP) has introduced the MBPP Strata Incentive, a new financial assistance programme aimed at helping low-cost and low-medium cost strata residential schemes manage their buildings and carry out essential maintenance works.

The initiative, announced by MBPP Mayor Dato’ Ir. A. Rajendran, comes after the council’s Commissioner of Buildings (COB) Department identified recurring challenges faced by many strata communities, including difficulties in establishing Joint Management Bodies (JMBs) or Management Corporations (MCs), as well as insufficient funds for routine maintenance and emergency repairs.

According to Rajendran, poor collection of maintenance charges has left many JMBs and MCs struggling to finance critical expenses such as lift repairs, plumbing works, water tank maintenance, utility bills and other urgent common property repairs.

To address these issues, MBPP has allocated RM50,000 annually for the programme, with eligible applicants able to receive a one-off grant of up to RM10,000, depending on the approved scope of work.

The incentive covers two key areas: management-related expenses, including the establishment of JMBs or MCs and the organisation of Annual General Meetings (AGMs) or Extraordinary General Meetings (EGMs), as well as emergency maintenance and repair works involving common property in accordance with the Strata Management Act 2013 (Act 757).

Eligible applicants include JMBs, MCs, property management agents and parcel owners. However, the incentive is limited to private low-cost and low-medium cost strata developments with an original purchase price of RM100,000 or below, excluding mixed developments.

Applicants must also meet several eligibility criteria. The strata scheme must already have an active JMB or MC, achieve at least a 60% assessment tax payment rate among registered parcel owners based on MBPP records, and submit an updated list of owners or purchasers as part of the application.

To ensure proper use of public funds, successful recipients will be required to submit reports detailing the repair or replacement works carried out under the approved grant. Applications for subsequent funding will only be considered after a five-year interval from the date of the previous approval.

The MBPP Strata Incentive will take effect on 1 January 2027, in line with the council’s approved 2027 budget.

The initiative is expected to ease the financial burden on older strata communities, improve the upkeep of common facilities, and promote better building management for thousands of residents living in affordable high-rise housing across Penang Island.