Originally, the Federal Territory (FT) Ministry was established in 1979 and was in charge of planning and administration of Kuala Lumpur and Klang Valley.

In 1981, the FT Ministry was re-established under the Prime Minister's Department as the Planning Unit of Klang Valley.

However, in the 1969 elections the Alliance, while retaining control of the federal government, lost its majority in Selangor to the opposition.

[2] The cession of Kuala Lumpur had the effect of securing the Selangor state government for the Barisan Nasional until the 2008 general election.

Labuan, an island off coast of mainland Sabah, was chosen by the federal government for development into an offshore financial centre.

[2] Putrajaya is a planned city, designed to replace Kuala Lumpur as the seat of the federal government.

Sultan Salahuddin of Selangor, who was serving as the Yang di-Pertuan Agong at that time, was asked again to cede land to the federal government.