Set in a secondary forest, this mosque along Jalan Mempurong was completed in 1963 as a place of worship for the Malay Muslims staying in Sembawang.
Before the mosque was built, Muslims living in kampungs nearby had to pray at suraus (Malay: small prayer house) or at the former Masjid Jumah Sembawang along Sembawang Road. In the early 1960s, funds were raised to build a mosque here. One of the biggest contributions came from Lee Foundation, which donated $10,000. When the mosque was completed, it was named Masjid Kampung Tengah, after the kampung it was located in.
In 1960, the area along the coast was populated by the Malay community. This area was known as the Malay Settlement or ‘Petempatan Melayu Sembawang’. The mosque was later renamed after the settlement as Masjid Petempatan Malayu Sembawang. For many years, it served as the social and religious centre of neighbouring Malay kampungs. Important rituals were carried out here, such as the cukur rambut (Malay: shaving of newborns’ hair) and weddings.
Extensive renovation works were carried out in 1984 and further upgrading was undertaken in 2007 for eight months before it re-opened in April 2008. Near the entrance, a tall rubber tree stands, the last one remaining from former rubber plantations here. Residents believed that there is a resident spirit in the tree as attempts to fell the tree have failed.