" P u t r a j a y a , an "Intelligent Garden City" and the federal administrative capital of Malaysia, is a showcase city under construction some 30 km south of the capital Kuala Lumpur. Her adjacent sister city, Cyberjaya, is built along the same lines, but is aimed at attracting the IT industry. The area was formerly known as Prang Besar.
The project was started in 1993 and the federal capital officially moved in 1999, although the site is still far from complete. Putrajaya became a self-governing federal territory (wilayah persekutuan) in 2001, the third in Malaysia after Kuala Lumpur and the little oddball island of Labuan.
The name literally means "princes' (putra) success (jaya)". Officially, the site is named in homage to Malaysia's first prime minister, Tunku Abdul Rahman Putra, but odds are it's also a tip of the hat towards the "princes of the soil" (bumiputra), an euphemism for ethnic Malays (as opposed to the richer Chinese minority) and one of the key concepts of Malaysia's affirmative action program.
Ever since the Asian economic crisis of 1998 development has slowed down markedly, and while there aren't any of the rusting half-built concrete shells that still litter KL and Bangkok, the careful eye will spot more than a couple of once cleared and dug-up but now abandoned fields (often with a crane or two stuck in the mud too). Basically, the infrastructure is largely in place but the buildings and occupants aren't, leading to the impression of a giant swath of hilly jungle crisscrossed by 8-lane highways with no other cars on them, and the occasional beautifully sculpted lake garden with no people in sight.
That said, the area remains under heavy construction and both people and companies are slowly moving in. As of 2009, the population has surpassed 50,000, although there's still a long way to go to the targeted 300,000. Inevitably, development isn't always occurring in expected ways: Cyberjaya has to date mostly succeeded in attracting call centers and data warehouses, not R&D laboratories. The new twin cities may look very different in 5-10 years' time. "
The vision to have a new Federal Government Administrative Centre to replace Kuala Lumpur as the administrative capital emerged in the late 1980s, during the tenure of Malaysia's 4th Prime Minister, Dr. Mahathir Bin Mohamad. The new city was proposed to be located between Kuala Lumpur and the new KL International Airport (KLIA).
The Federal government negotiated with the state of Selangor on the prospect of another Federal Territory and in the mid-1990s, the Federal government paid a substantial amount of money to Selangor for approximately 11 320 acres (46 km²) of land in Prang Besar, Selangor. As a result of this land purchase, the state of Selangor now completely surrounds two Federal Territories within its borders, namely Kuala Lumpur and Putrajaya.
Planned as the garden and intelligent city, 38% of the area is reserved for green areas by emphasizing 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.
The Asian Financial Crisis of 1997/1998 had somewhat slowed the development of Putrajaya. In 1999, 300 staffs of the Prime Minister's office were shifted to Putrajaya and the remaining government servants moved in 2005. On February 1, 2001 Tun Dr. Mahathir declared Putrajaya as a Federal Territory with the ceremony of handing over Putrajaya township from the Selangor state authorities.
In 2002, a high speed rail link called KLIA Transit was opened, linking Putrajaya to both Kuala Lumpur and KL International Airport in Sepang. However, construction of the Putrajaya Monorail which was intended to be the city's metro system, was suspended due to costs. One of the monorail suspension bridges in Putrajaya remains unused.
In 2007, the population of Putrajaya was estimated to be over 30,000, which comprised mainly government servants.
Putrajaya information are taken from http://en.wikipedia.org/wiki/Putrajaya ,