evidence: Eleven of these states and two federal territories are geographically situated on the Malay Peninsula, and together they are called Peninsular Malaysia. The two remaining states are found on the Island of Borneo while the last federal territory is made up of islands on the shores of Borneo. This last batch is collectively referred to as East Malaysia. Kuala Lumpur is one of Malaysia's three federal territories. It is located on the Malay Peninsula, and is entirely surrounded by the state of Selangor. Kuala Lumpur became Malaysia's first federal territory when it separated from Selangor in 1974. It is Malaysia's capital city, and houses the Istana Negara (National Palace) of the monarch, as well as the parliament. As of 2016, the population of Kuala Lumpur was 1,768,000.