KUALA LUMPUR, Dec 19 — Segambut MP Hannah Yeoh (DAP) took her oath as the new minister overseeing the Federal Territories two days ago, becoming the first ethnic Chinese politician to hold the portfolio.

The Federal Territories portfolio is a complex one, shaped by Kuala Lumpur’s separation from Selangor in the 1970s — a move widely seen by historians as aimed at securing federal control over the capital, amid heightened ethnic and political tensions following the May 13, 1969 riots.

In her first remarks as FT minister, the 46-year-old Yeoh said she would prioritise improving basic government services, sustainable development, safeguarding green spaces and public parks, and tackling flash floods.

Yeoh is expected to face difficult challenges, given how broad and diverse the Federal Territories department’s scope of duties is.

In this primer, we explain the portfolio’s key responsibilities and its most pressing challenges.

Urban planning and infrastructure development

Yeoh is responsible for the strategic planning and physical development of the three federal territories: Kuala Lumpur, Putrajaya, and Labuan.

As FT minister, this includes steering these territories towards functioning as globally competitive centres for administration, commerce and finance.

This means the Segambut MP will have to delicately balance major infrastructure projects with the federal government’s push for greener, more people-centric urban growth.

Critical flood-mitigation projects, including the RM40 million Kampung Bohol retention pond and major drainage upgrades, are often delayed by land disputes or pressure from private developers to build on land surrounding flood-buffer zones.

Yeoh will also face the immediate challenge of securing public and political support for the polarising Urban Renewal Bill.

Fears of displacement have led some to oppose it, with claims amplified by the Opposition that Malays could be forced out of city centres.

Supervising local authorities

Unlike other Malaysian states with their own state governments, the federal territories are governed directly by the federal government.

The minister acts as the supervising authority for the main local government agencies — Kuala Lumpur City Hall (DBKL), Putrajaya Corporation (PPj) and Labuan Corporation (PL).

In this context, there will be pressure to address longstanding demands for reform, including a push for local council elections.

Last month, seven members of parliament from the capital, including DAP leaders, submitted a private member’s Bill to introduce a councillor-based governance system, led by Setiawangsa MP Nik Nazmi Nik Ahmad.

Improving urban socio-economics and welfare

This will be another key responsibility on which Yeoh will be judged as FT minister.

This includes reducing urban poverty, strengthening support for vulnerable communities in high-density areas and improving residents’ overall quality of life.

This could involve plans for more affordable housing, while managing and improving existing programmes such as the People’s Housing Project (PPR).

There is a need to find ways to widen economic opportunities for small traders and hawkers, while co-ordinating social safety nets for the urban poor.