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Putrajaya, officially known as the Federal Territory of Putrajaya, serves as the administrative and judicial capital of Malaysia. In 1999, the federal government of Malaysia moved its seat from Kuala Lumpur to Putrajaya due to the issue of overcrowding and congestion in the former city. Subsequently, in 2003, the judiciary of Malaysia was also relocated to Putrajaya. It's important to note that Kuala Lumpur continues to be Malaysia's national capital city as stipulated by the constitution. It remains the seat of the head of state, known as the Yang di-Pertuan Agong, and the national legislature, which is the Parliament of Malaysia. Kuala Lumpur also functions as the country's commercial and financial center. The concept of establishing Putrajaya was initiated by the former Prime Minister, Mahathir Mohamad. Development work on Putrajaya commenced in August 1995 and was completed at an estimated cost of US$8.1 billion. On February 1, 2001, Putrajaya was declared Malaysia's third federal territory after Kuala Lumpur (in 1974) and Labuan (in 1984). Putrajaya is also an integral part of MSC Malaysia, a special economic zone that encompasses the Klang Valley.