Forum: Let’s have a sinking fund health index for condos

I refer to the letter “

Allow public access to sinking fund records

” (Aug 18). As someone who has served on the council of my condominium’s management corporation strata title (MCST) since 2019, I support stronger transparency, with a practical compromise.

From the ground, three realities recur at annual general meetings.

First, owners often vote to keep contributions low because major repairs feel “far away”. Second, when lifecycle works arrive – lift modernisation, facade repainting or waterproofing – the bills are hefty and can drain reserves quickly. Third, governance capacity varies widely across MCSTs, especially those run by volunteers without a managing agent.

These dynamics make under-collection more likely than over-collection.

Prospective buyers also face information asymmetry. While one may pay to inspect accounts, the process is cumbersome and hard to interpret. The result is “levy shock” when funds prove thin.

A middle ground is to publish, annually, a sinking fund health index for every MCST – a simple traffic-light rating (green, amber or red) derived from data already submitted to the Building and Construction Authority.

The assessment should account for development age, size and facilities, expected lifecycle costs, current balances and committed works. Each rating can be accompanied by a short context note, such as “Roof replacement scheduled in 2026” and benchmarked against similar estates by age and size.

While the public sees the index and trend, full figures remain accessible to owners and bona fide buyers.

Such a system would nudge prudent budgeting, deter free-riding, protect buyers from hidden liabilities, and reduce safety risks such as when critical asset replacements (especially lifts) are deferred – a concern for seniors and families alike.

This balances privacy with the public interest. It also avoids unfairly stigmatising estates that temporarily dip during planned upgrades by providing context and trends.

I urge the authorities to study and pilot this index with a small cohort of volunteer MCSTs, in consultation with industry and resident groups.

Wayne Freeman Chong (Dr)