Located in north-eastern Peninsular Malaysia, and is bordered in southwest by Pahang, the northwest by Kelantan, and the east by the South China Sea. Several outlying islands, including Pulau Perhentian, Pulau Kapas and Pulau Redang, are also a part of the state. The state has a total area of 12,955 km2. Kuala Terengganu is the state and royal capital of Terengganu state, Malaysia as well as its largest town. The town has a population of 250,939 (2000 census) and is also the seat of a district of the same name. Kuala Terengganu is located about 500 kilometers northeast of Kuala Lumpur on a promontory surrounded on three sides by the South China Sea. The name means the “river mouth of Terengganu”, referring to the broad expanse of the Terengganu River estuary which empties into the ocean at this point. It soon becoming into a main trading post between the two countries. However, after the Melaka Empire conquered the town, its influence as a leading port in the Southeast Asian region diminished as most of the traders preferred to stop at Melaka, which was the center of trade between China, India and Southeast Asia.