In 1881, a flood swept through the town following a fire which engulfed it earlier. These successive problems destroyed the town’s structures of wood and atap (thatching). As a response, Frank Swettenham, the British Resident of Selangor, required that buildings be constructed of brick and tile. Many of the new brick buildings mirrored that of shop houses in southern China, with “five foot ways” as well as skilled Chinese carpentry. This resulted in distinct eclectic shop house architecture typical to this region. A railway line increased accessibility into this town. Development intensified in the 1890s, leading to the creation of a Sanitary Board. In 1896, Kuala Lumpur was chosen as the capital of the newly formed Federated Malay States.

A mixture of different communities settled in various sections of Kuala Lumpur. The Chinese mainly settled around the commercial centre of Market Square, east of Klang River, and towards Chinatown. The Malays, Indian Chettiars, and Indian Muslims resided along Java Street (now Jalan Tun Perak). The Padang, now known as Merdeka Square, was the center of the British administrative offices.

During World War II, Kuala Lumpur was captured by the Japanese army on January 11, 1942. They remained in occupation until August 15, 1945, when the commander in chief of the Japanese Seventh Area Army in Singapore and Malaya, Seishirō Itagaki, surrendered to the British administration following the Atomic bombings of Hiroshima and Nagasaki. Kuala Lumpur grew through the war, the rubber and tin commodity crashes and the Malayan Emergency, during which Malaya was preoccupied with the communist insurgency. In 1957, the Federation of Malaya gained its independence from British rule. Kuala Lumpur remained the capital through the formation of Malaysia on September 16, 1963.

On May 13, 1969, one of the worst race riots in Malaysia took place in Kuala Lumpur. The May 13 Incident was a riot between the Malays and the Chinese who were dissatisfied with the socio-political situation at the time. The riot resulted in the deaths of 196 people, and led to a major reform in the country’s economic policy.

Kuala Lumpur later achieved city status in 1972, becoming the first settlement in Malaysia to be granted the status after independence. Later, on February 1, 1974, Kuala Lumpur became a Federal Territory. Kuala Lumpur ceased to be the capital of Selangor in 1978 after the city of Shah Alam was declared as the new state capital.

On 14 May 1990, Kuala Lumpur was celebrated 100 years of local authority. The new federal territory of Kuala Lumpur flag and anthem were introduced.

In 1998, another political movement known as Reformasi took place mainly in this city. The movement was a result of the sacking of former Malaysian Deputy Prime Minister, Anwar Ibrahim, and resulted in a chain of protests until 1999, where supporters of Anwar Ibrahim took to the streets to demand reforms in the government’s administration, among others.

On February 1, 2001, Putrajaya was declared a Federal Territory, as well as the seat of the federal government. The administrative and judicial functions of the government were shifted from Kuala Lumpur to Putrajaya. Kuala Lumpur however still retained its legislative function, and remained the home of the Yang di-Pertuan Agong (King).

In November 2007, two of the largest political rallies since 1998 took place in the city—the Bersih rally on November 10 and the HINDRAF rally on November 25. The Bersih rally was organized by a number of non-governmental organizations and opposition political parties to demand electoral reform in the country with about 50,000 people taking to the streets. The HINDRAF rally was organized by HINDRAF (Hindu Rights Action Front) and was attended by at least 30,000 mainly ethnic Indian protesters demanding equal social and economic rights from the Bumiputras

Source: http://www.lonelyplanet.com/malaysia/kuala-lumpur ,
http://en.wikipedia.org/wiki/Kuala_Lumpur,_Malaysia