The name of the area is thought to be derived from the cajeput tree, called "gelam" in Malay. "Kampong" simply means "village". Prior to colonisation by the British in 1819, the area was home to the Malay aristocracy of Singapore. It became prominent and more populous after the signing of a treaty between the British East India Company, Sultan Hussein Shah of Johor and Temenggong Abdul Rahman in 1819. The company was given the right to set up a trading post in Singapore under this treaty. During the colony's early history, under the Raffles Plan of 1822, the settlement was divided according to different ethnic groups which included European Town, Chinese, Chulia, Arab and Bugis kampongs. Kampong Glam was designated for the Sultan and his household, as well as the Malay and Arab communities, many of whom were merchants. It was situated east of what was then the European Town. While the Temenggong and his followers settled in Telok Blangah, Sultan Hussein, his family and followers settled in Kampong Glam. In return, the Sultan was given large areas of land for residential use in Kampong Glam under the treaty. The land was allocated to the Malays and other Muslim immigrants to Singapore, including the Malays from Malacca, the Riau Islands and Sumatra in Indonesia. It also included the Baweanese, Banjarese, Chinese and Indians. The second half of the nineteenth century saw the rapid growth of immigrant communities in Kampong Glam, initially from Sumatra, and later from other parts of Indonesia and Malaya. This resulted in the setting up of different kampongs, like Kampong Malacca, Kampong Java and Kampong Bugis. There were also a small but successful Arab community of traders in the area. In the early twentieth century, commercial activities in Kampong Glam expanded as new shop houses and residential buildings were built. A multi-ethnic community soon developed there, comprising not only Malays and Arabs but also the Chinese and Indians. Later, due to an expansion of commercial activities and an increase in immigrant settlers in Kampong Glam, the Arabs moved to areas like Joo Chiat, Tanglin and Bukit Tunggal. By the early 1920s, many Malays also moved out to designated resettlement areas in Geylang Serai and Kampong Eunos.
Present
Today, Kampong Glam still retains strong ties to the Native-Malay and Muslim community and has sometimes been termed the "Muslim Quarter" due to its history. The Muslim population still remains a significant presence in Kampong Glam, especially in Bussorah Street. The area remains a centre for Muslim activities and the Sultan Mosque remains a major landmark and congregation point for the Singapore Muslims. Like Little India and Chinatown, Kampong Glam has been restored, refurbished and new life breathed into it, bringing back the former colour and vibrancy of the area. Rows of conserved shophouses can be found in Haji Lane, Arab Street, Baghdad Street and Bussorah Street. Many of these shophouses have new tenants such as design and IT firms, art galleries, crafts and curiosity shops, food caterers, cafes, bars and restaurants. They blend in with traditional businesses like textile and carpet shops, blacksmiths and shops selling religious items used by Muslims. It is also an area of good restaurants, from Malaysian coffee shops and bakeries to fine modern European dining, like Le Pont De Vie. On 16 December 2006, a fire broke out at four shophouses at Sultan Gate at 2145 with the four shophouses destroyed by the fire. It nearly spread to nearby food and beverage outlets in the vicinity. Of the four shophouses destroyed, two were vacant, one was a blacksmith shop and the other a shoe shop. Firefighters controlled the fire by surrounding it as it spread through the roof. According to eyewitnesses, the fire started from the second floor of the blacksmith shop. The blacksmith shop is one of the oldest types of shophouses in Singapore which was used for educational tours. It is the last blacksmith shop in the area.