Due to overcrowding in Kuala Lumpur, a planned new city, Putrajaya, was established as the administrative center of Malaysia. This new city demanded that Selangor have to cede more land. The seat of the Malaysian government was moved from Kuala Lumpur to Putrajaya in 1999 and Putrajaya became the third federal territory in 2001. Also known as « Hari Wilayah Persekutuan », the holiday marks the anniversary of the founding of the Kuala Lumpur Federal Territory in 1974. This agreement contains four provisions, namely the transfer of powers within the federal territory, covering areas of the federal territory, issues relating to performance, financial calculation and the advisory committee. It was recognized that if Kuala Lumpur remained a part of Selangor, conflicts could arise between the federal government and the Government of Selangor State if they were controlled by different parties. Proclaimed on 2 February 1974 and signed by malaysia`s second Prime Minister, Tun Abdul Razak bin Hussein. This proclamation took place after the signing of the agreement on the federal territory of Kuala Lumpur by the fifth Yang di-Pertuan Agong, Tuanku Abdul Halim Muadzam Shah ibni Almarhum Sultan Badlishah, on January 28, 1974. The proclamation, which entered into force on 1 February 1974, Kuala Lumpur and the gassed areas under Gazette No. 383 constituted federal territory.
Kuala Lumpur, capital of Malaysia. The city is located on The West Central (West) Peninsula of Malaysia, halfway along the tin and rubber belt of the west coast and about 25 miles (40 km) east of its ocean port of Port Kelang, on the Strait of Malacca. It is the largest urban area in the country and its cultural, commercial and transport center.