Why Putrajaya May Never Be Malaysia’s Capital City
The 1974 Federal Territory Agreement has a specific “caveat” preventing such a change from happening.
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Before Kuala Lumpur became the capital of Malaysia, KL was part of the sovereign state of Selangor.
Kuala Lumpur was already a designated administrative hub for the Federated Malay States (Selangor, Perak, Pahang, and Negeri Sembilan) since 1896.
Long story short, Kuala Lumpur grew exponentially in terms of business, commerce, government administration, infrastructure, and more. In addition, the number of residents and their interests also grew.
Kuala Lumpur continued to be the administrative centre for the Government of Malaya and then Malaysia (post-Malaysia Agreement 1963).
As a result of the city’s growth, there had been talks to have the central government be free from the sovereignty of a particular state.
The solution lies in the 1974 agreement
This led to the 1974 Federal Territory Agreement which would officially establish a special region which would be the centre point for administration and governance and separate from the command of a particular state.
The talks to nail down the specifics in the agreement took a long time. According to International Islamic University Malaysia (IIUM) urban and regional planning professor Datuk Dr Alias Abdullah, it took almost 100 tabled discussions to reach an agreement.
Dr Alias added that the 1974 Agreement also came with specific conditions such as the late Sultan Salahuddin Abdul Aziz Shah requesting the federal government to fund a new capital for the state, known today as Shah Alam.
The request was apparently to ensure more construction and installation of administrative buildings and infrastructure for public use in this “new city.”
The 1974 Agreement was signed on 28 January 1974 by the fifth Yang di-Pertuan Agong, Sultan Abdul Halim of Kedah on behalf of the Federal Government of Malaysia, and the Sultan of Selangor, Sultan Salahuddin Abdul Aziz Shah, on behalf of the Selangor state government at the Istana Negara.
It signified the handing over of the Kuala Lumpur territory to the Federal Government, establishing the Federal Territory.
The Federal Territory of Kuala Lumpur was proclaimed on 1 February 1974 and signed by the second prime minister of Malaysia, Abdul Razak Hussein. This is why we still see congratulatory messages on the city’s anniversary, the Federal Territory Day, in February.
Dr Alias shared that the Federal Capital Act of 1960 allowed Kuala Lumpur to appoint its official commissioner to oversee the municipal affairs of the city.
When Kuala Lumpur gained its city status, a new law was made; Act 267 – Federal Territory (Planning) Act 1982.
The new law details the functions and powers of the commissioner, including the control, development, planning, and preservation of the district.
Dr Alias claimed that Kuala Lumpur saw a boom in progress because former mayors Tan Sri Elyas Omar (1981-1992), Tan Sri Mazlan Ahmad (1992-1995) and Tan Sri Kamaruzzaman Shariff (1995-2001) reported directly to the Prime Minister’s office.
Currently, the chain of reporting has changed after the Federal Territory and Klang Valley Planning and Development Division were upgraded to a full-fledged ministry. This ministry’s additional responsibility includes jurisdiction over the territories of Labuan and Putrajaya.
During the late Elyas Omar’s tenure, he realised many ad hoc government buildings and ministries were scattered across the city. He suggested to the then prime minister Tun Dr Mahathir Mohamad to have a separate administrative centre outside of KL.
It was only in the year 2000 onwards that some of the government moved to Putrajaya during Datuk Seri Najib Razak’s premiership.
The history of Kuala Lumpur becoming the capital is covered in the book titled “The 25-year Reign of His Royal Highness on the Throne of Selangor Darul Ehsan (1960-1985)” by Mohd Yusoff Hashim.
What was the other important thing noted in the 1974 Agreement?
Interestingly, the 1974 Federal Territory Agreement has an interesting caveat. Under Article III, the areas (described in Article II) will revert to the State of Selangor if it ceases to be Federal Capital.
Anyway, KL history. Article III of the 1974 Kuala Lumpur Agreement between federal and Selangor stipulates that:
— Hadi Azmi (@amerhadiazmi) August 31, 2024
"If the areas described in Article Il shall cease to be Federal Capital, the said areas shall revert to the State of Selangor."
Interesting. pic.twitter.com/ebZlI6VM2U
This led to many guessing that it’s why Putrajaya can never be the next capital of Malaysia. However, the attempts to do so did not stop since some administrative and legislative bodies were moved to Putrajaya.
There were also attempts to move the Parliament to Putrajaya around 2010. The Putrajaya International Convention Centre (PICC) was proposed as the site of Malaysia’s new Parliament complex.
That’s why parliament remains in KL and was not moved to Putrajaya
— ♤♡◇♧ (@bahabidari) August 31, 2024
Yep, back when Putrajaya was being set up, this already came up and my mother explained that Parliament stays in KL because if all three branches of federal govt moves, then KL goes back to Selangor.
— _horizon_ (@nuraini_arsad) September 1, 2024
If that happened, it would put the three branches of government on an axis—Persiaran Perdana—with the executive and legislative branches at both ends and the judiciary in the middle, balancing the whole thing.
— Hadi Azmi (@amerhadiazmi) August 31, 2024
A scale. Dacing.
(Although as you can see, it's not quite balanced) pic.twitter.com/7y0TL1uNuW
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