Shah Alam is a city and the state capital of Selangor, Malaysia and situated within the Petaling District and a small portion of the neighbo…Shah Alam is a city and the state capital of Selangor, Malaysia and situated within the Petaling District and a small portion of the neighbouring Klang District. Shah Alam replaced Kuala Lumpur as the capital city of the state of Selangor in 1978 due to Kuala Lumpur's incorporation into a Federal Territory in 1974. Shah Alam was the first planned city in Malaysia after independence from Britain in 1957.