Putrajaya is a planned city, located 25km south of Kuala Lumpur, that serves as the federal administrative centre of Malaysia. The seat of government was shifted in 1999 from Kuala Lumpur to Putrajaya, due to the overcrowding and congestion in the Kuala Lumpur areas.
Nevertheless, Kuala Lumpur remains Malaysia's national capital, being the seat of the King and Parliament, as well as the country's commercial and financial centre. Putrajaya was the brainchild of former Prime Minister Tun Dr Mahathir Mohammad. In 2001, Putrajaya became Malaysia's third Federal Territory after Kuala Lumpur and Labuan.
Named after the first Malaysian Prime Minister, Tunku Abdul Rahman Putra, the city is situated within the Multimedia Super Corridor, beside the also newly developed Cyberjaya. In Malay/Sanskrit, the words "putra" or "putera" means "prince", and "jaya" means "success" or "victory". The development of Putrajaya started in early 1990s, and today major landmarks are completed and the population is expected to grow bigger by the days.
Planned as a garden and intelligent city, 38% of the area is reserved for green spaces by emphasising the enhancement of natural landscape. A network of open spaces and wide boulevards were incorporated to the plan. Construction began in August 1995 and it was Malaysia's biggest project and one of Southeast Asia's largest with estimated final cost of US$ 8.1 billion. The entire project was designed and constructed by Malaysian companies with only 10% of the materials imported.
In 2007, the population of Putrajaya was estimated to be over 30,000, which comprised mainly government servants.
Putrajaya is home to the world's largest roundabout with a diameter of 3.5 km. (2.7 miles).