Malaysian urban areas are relatively young with the majority are less than 250 years old. These established towns, municipal areas and cities were founded by British colonial administration of the country about 200 years ago. Right up to the 1970-s these towns including port towns were described as mere sleepy hollows by urban observers. Colonial capital was the mainstay for the rich tin exploitation and later rubber plantations. Towns and port towns along the coast of the Peninsula became the centres of administrative command and control for safety, security, basic services and commercial ventures to serve mainly the colonial interest and the migrant population from China and India.. Although becoming islands of modernity with some market openings for modern jobs these towns were separated from the rural areas, where the majority of the local people live. The Independence in 1957 for Peninsular Malaysia and the formation of Malaysia in 1963, adding Sarawak and Sabah state to the Federation of Malaysia, started the transition in urban development in the country. The development policy with the state taking an active role in development, known as the developmental state paradigm, broadens the colonial capital base to attract capitals from other economic regions in the globalization process of production. Using data mainly from the government agencies such as the Population Census, we can trace the transformation of towns to become what they are today. Beginning with import substitution industries established urban areas grew and expanded along new roads and new highways to merge with other small towns, engulfing rural areas in the fringes in the process. With increasing attractions to rural migrants and urban fertility population of towns expanded. Soon social infrastructures grew-schools, universities, hospitals so on along with new housing neighbourhoods, commercial centres, extending the urban area further outwards. Some of these conurbations have grown so large to merit the name mega urban regions. The largest among them is the Kuala Lumpur mega urban region, being the commercial high end and services to its administrative core in Putrajaya. Being the centre of the national administration, the Kuala Lumpur mega urban region has become the home for educational, health, high end shopping area, Islamic finance and services in the region. Overlapping drivers have in the last decade transformed most of the towns founded by the colonial capital. Some, notably Kuala Lumpur has achieved the vibrancy of a mega urban region for the country and the region. Thus, in the path towards a developed country in 2020 the Malaysian urban centres continue to be the centres of growth and home to about 72 % of Malaysians in 2010. If we relax the authority defined ‘urban’ to include the huge development schemes with all the modern trappings the total Malaysians in urban areas are best described as almost fully urban.