Reconstructed between 1836 and 1843 under the patronage of his son, Sultan Ali Iskandar Shah, the concrete palace reflected a blend of Palladian architectural elements with indigenous Malay motifs, purportedly influenced by architect George Drumgoole Coleman.

In 2004, as an integral facet of the Malay Heritage Centre initiative, meticulous restoration efforts were undertaken to faithfully revive its original grandeur and historical significance.

After extensive restoration efforts, the palace grounds were refurbished into the Malay Heritage Centre, officially inaugurated in June 2005 with Prime Minister Lee Hsien Loong leading the ceremony.

Furthermore, it is expected to open doors for collaborations with esteemed regional museums in Indonesia and Malaysia, fostering cross-cultural exchanges and enriching the centre's offerings on a global scale.

During the re-opening of the Malay Heritage Centre, Prime Minister Lee Hsien Loong stressed the need for its programs to engage the community and promote multicultural understanding.

The revamped centre features new permanent galleries showcasing Kampong Gelam's significance as a focal point for exploring Malay history, culture, and heritage.