Selangor, with an area of approximately 8,000 sq. km, extends along the west coast of Peninsular Malaysia at the northern outlet of the Straits of Malacca. Its advantageous geographic position and rich natural resources have made Selangor the most prosperous state in Malaysia. Today it has the distinction of being the most populated state in Malaysia, with about 3.75 million inhabitants. A large proportion of Selangor's population lives around the Federal Territory of Kuala Lumpur, though the balance is now shifting towards its new capital, Shah Alam.