The Effectiveness of 1Malaysia Maintenance Fund on Maintenance Services for Low-Cost Apartments

Abstract

The aims of this study are to identify the effectiveness of 1Malaysia Maintenance Fund on maintenance service for low-cost apartments and to propose a theoretical framework on service quality, customer satisfaction and trust. A survey questionnaire (SERVQUAL) was used as an instrument to collect the data from 400 respondents consisting of the residents of private and public low-cost apartments in Kuala Lumpur and analyzed using two statistical packages of computerized systems. The Statistical Package of Social Science (SPSS version 16) was used to identify the existing level of maintenance services for low-cost apartments and to compare how the level of trust for private (TP1M) and public low-cost apartments (PPP) affect quality of services for low-cost apartments. Then, the Partial Least Squares regression (SmartPLS version 3.2.7) was used to test the model in this study. The findings revealed that quality of maintenance services for private low-cost apartments (TP1M) were affected by trust more than public low-cost apartments (PPP). In addition, the findings also revealed that service quality has positively affected customer trust was supported for both case studies with a t-statistic>1.96 (at 5 percent significance level) and p-value<0.05 at the significance level. The findings suggest that the success of this fund could increase customer trust on maintenance services for low-cost apartments; and a good relation between the residents and management companies is the most important aspects should be kept up and improved.