Claim: Kuala Lumpur is Malaysia's economic center.

Kuala Lumpur -LRB- -LSB- ˈkwɑːlə ˈlʊmpʊə -RSB- or -LSB- - pər -RSB- -LSB- ˈkwalə ˈlumpʊr -RSB- -RRB- , officially the Federal Territory of Kuala Lumpur , or more commonly KL , is the national capital of Malaysia as well as its largest city . The only alpha world city in Malaysia , it covers an area of 243 km2 and has an estimated population of 1.73 million . Greater Kuala Lumpur , also known as the Klang Valley , is an urban agglomeration of 7.25 million people . It is among the fastest growing metropolitan regions in South-East Asia , in both population and economic development .   Kuala Lumpur is the cultural , financial and economic centre of Malaysia , home to the Parliament of Malaysia , and the official residence of the Malaysian King , the Istana Negara . The city once held the headquarters of the executive and judicial branches of the federal government as well , but they were moved to Putrajaya in early 1999 . Some sections of the judiciary still remain in Kuala Lumpur .   Kuala Lumpur is one of three Federal Territories of Malaysia , enclaved within the state of Selangor , on the central west coast of Peninsular Malaysia . Since the 1990s , the city has played host to many international sporting , political and cultural events including the 1998 Commonwealth Games and the Formula One Grand Prix . Kuala Lumpur has undergone rapid development in recent decades . It is home to the tallest twin buildings in the world , the Petronas Twin Towers , which have become an iconic symbol of Malaysia 's futuristic development .