As Malaysia’s property stock matures, industry players are warning that funding shortfalls and outdated maintenance practices could erode asset values and impose hidden costs on homeowners and investors. This comes at a critical juncture, with a significant share of high-rise condominiums in Kuala Lumpur and Selangor entering major refurbishment cycles without sufficient funds set aside.
To address these concerns, Nippon Paint (Malaysia) Sdn. Bhd (“Nippon Paint”) hosted a roundtable on the sustainable refurbishment of existing buildings. The session brought together leaders from the Ministry of Housing and Local Government, the Malaysian Institute of Property and Facility Managers, the Malaysian Institute of Architects, the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia, the Green Building Index, and the Royal Institution of Surveyors Malaysia. Discussions centred on the two most pressing refurbishment needs facing Malaysian properties today, namely waterproofing and repainting, particularly for buildings aged between eleven and twenty years.
At the heart of the problem lies Malaysia’s statutory sinking fund framework, which requires a contribution of ten percent, a formula established decades ago that no longer meets current demands. According to MIPFM member PMGR SR Nageswaran Muniandy, the most common and costly issues begin to appear when a building reaches six to ten years, with waterproofing topping the list. Once properties are over twenty years old, modernisation or even full upgrading is often required. However, with the sinking fund contribution capped at ten percent, most management bodies can only afford minimal repairs. This creates a domino effect, where delayed maintenance worsens property conditions, ultimately eroding property values and investor confidence.
The panellists cautioned that insufficient funds not only delay essential work but also drive property owners toward short-term, low-cost fixes that fail to address root causes. Nippon Paint’s Senior Manager, Aaron Ang, explained that even the best waterproofing systems are ineffective if poorly applied or specified incorrectly. He noted that waterproofing is often used without rectifying underlying defects, merely postponing problems rather than solving them. Without stronger standards and enforcement, new buildings can begin leaking within three to five years. To counter this, Nippon Paint has established strict waterproofing procedures that involve periodic site inspections and close supervision, ensuring correct application through best practices at every stage, from pre-maintenance to post-maintenance, thereby delivering long-term durability and performance.
The roundtable also highlighted Malaysia’s tendency to adopt a reactive approach to property maintenance, where action is taken only after damage becomes visible. By then, repairs are often more expensive, disruptive, and less effective. Former PAM president and current CEO of Green Building Index, Ar. Sarly Adre Sarkum, emphasised that preventive care, supported by proper manuals, certified professionals, and enforceable standards, could help break this costly cycle. By shifting from reactive to preventive practices, buildings could achieve longer lifespans and owners would face less financial strain over time.
Another challenge is the rise of unqualified inspectors and contractors who misdiagnose issues, often making matters worse. Senior Manager of Nippon Paint Malaysia, Ester Goh, pointed out that many building managers turn to such unqualified parties, exacerbating problems rather than resolving them. While Nippon Paint provides courtesy inspections through certified applicators, Ester stressed that the industry as a whole requires proper regulation and recognition of competent professionals to safeguard property owners.
Waterproofing problems are often dismissed as cosmetic inconveniences such as damp walls or peeling paint, yet these are early warning signs of deeper structural concerns. Ester noted that waterproofing failures should never be regarded as superficial, since leaks and dampness compromise comfort, safety, and building structures, eventually resulting in far greater costs than preventive upkeep. She added that even the best waterproofing systems require correct surface preparation, skilled workmanship, and periodic inspections. With warranties usually lasting five to ten years, many buildings fail to budget for system replacements once warranties expire, leaving management committees scrambling for funds when failures occur. To address this, Nippon Paint offers a re-waterproofing service carried out by certified applicators, backed by product warranties, workmanship warranties, and independent verifications such as SIRIM certification, Green Label certification, and laboratory test reports. These safeguards ensure solutions are applied correctly and deliver long-term durability and confidence for property owners.
Beyond shifting practices, the panellists agreed that Malaysia urgently requires policy reform to ensure refurbishment keeps pace with urbanisation and rising costs. They called for the sinking fund formula to be revised to reflect the amortisation of major building components, for maintenance manuals to be mandated in all new developments, and for Malaysian Standards such as MS1294 and MS1063 to be incorporated into the Uniform Building By-Laws. According to Sarly, Malaysia already has waterproofing standards, but without embedding them into the UBBL, compliance remains weak. Stronger frameworks are necessary to ensure durability, protect property buyers, and keep up with rapid urbanisation.
Despite these challenges, the market is poised for growth. With Malaysia’s urban centres dominated by ageing condominiums and strata properties, demand for high-quality refurbishment solutions is expected to rise steadily. As Aaron Ang concluded, buildings are long-term assets, and poor upkeep not only inconveniences residents but also reduces property values and undermines confidence in entire neighbourhoods. A healthier refurbishment ecosystem benefits homeowners, investors, and the economy at large.
By convening regulators, professional bodies, and industry stakeholders, Nippon Paint underscored its commitment to building a stronger refurbishment ecosystem. Central to this is the company’s Total Coating and Construction Solutions (TCCS), a holistic approach ensuring that every stage of refurbishment, from drymix and waterproofing to repainting, is carried out with compatible systems, certified applicators, and long-term warranties. These integrated solutions address immediate concerns such as leaks and surface deterioration, while also extending building lifespans, safeguarding property values, and reducing financial strain on owners.
In line with this commitment, Nippon Paint continues to innovate and expand its comprehensive waterproofing portfolio, catering to both new projects and refurbishment works. Its systems protect roofs, wet areas, basements, water-retaining structures, and walls, with a wide range of solutions from liquid membranes under the NippoSEAL brand, to sheet membranes under NippoGARD, and cementitious membranes under NippoCEM. These integrated options provide long-term protection against leaks and deterioration, ensuring sustained building value and reduced financial burden for property owners.
For more information about Nippon Paint’s Total Coating and Construction Solutions Refurbishment Solutions, visit https://professional.nipponpaint.com.my/refurbishment.