Are You Using It Correctly?
Many JMB and owners misunderstand the difference between Maintenance Fund (MF) and Sinking Fund (SF). Maintenance Fund is meant for daily operations—security, cleaning, utilities, and routine expenses. Sinking Fund, however, is reserved for long-term capital expenditure, such as lift replacement, repainting, and major repairs. Misusing the sinking fund for operational purposes may temporarily solve cash flow issues, but it creates serious financial risk in the future.
Clear separation and proper planning are essential to ensure long-term sustainability of the building.
