The cooperative-collective sharing arrangement of gated communities in Malaysia

Abstract

Purpose – The purpose of this paper is to discover the operational character of gated communities in Malaysia. Design/methodology/approach – This paper is based on a small case study conducted in Iskandar Malaysia, an economic development region located in the southern part of Peninsular Malaysia. In the case study, 12 housing developers were interviewed, involving 32 gated communities altogether. The investigation covered the identification of the governing document used in operating a gated community, the operational purposes and scopes, the arrangement for collection of maintenance fee, and the internal governance within the gated communities. Findings – From the analysis, it was found that two types of gated communities exist in the case study areas, namely the strata gated community scheme, and the gated community scheme (GACOS). The operational mechanism for the former is through a set of rules enforced by the government. Meanwhile, the latter is based on the arrangement set up either by the developer, where legal agreement is applicable, or through the consensus among homeowners. However, despite these differences, both mechanisms share the same intention, that is to operate the gated community based on cooperative-collective sharing arrangement. Research limitations/implications – Despite the vulnerability of GACOS enclosure components, the case study revealed that the number of GACOS is still bigger than the strata gated community scheme. Since this perspective is lacking in this paper, it is suggested that more studies are conducted to explain the reasons behind the indicated phenomenon. Originality/value – The most important contribution of the paper is to highlight the importance of gating experience that is heavily influenced by the local policy setting to determine the survival of a gated community; thus, demonstrating how different they are from each other.