Orang itu sangat kaya.

Malay often does not use a verb like is / am / are in simple descriptive sentences.

So:

• Orang itu sangat kaya = That person is very rich
• literally, it is more like person that very rich

This is completely normal in Malay. When you describe someone or something with an adjective, you usually do not need a separate word for is.

Examples:

• Dia cantik = She is beautiful
• Rumah itu besar = That house is big

Orang means person or people, depending on context.

In this sentence:

• orang itu = that person

By itself, orang can also mean people in a general sense:

• Orang Malaysia = Malaysians / Malaysian people
• ramai orang = many people

So here, because of itu, it is understood as that person, not people.

In Malay, demonstratives like ini (this) and itu (that) usually come after the noun.

So:

• orang itu = that person
• rumah itu = that house
• buku ini = this book

This is one of the big word-order differences from English.

English: that person
Malay: person that

Sangat means very.

It usually comes before the adjective:

• sangat kaya = very rich
• sangat besar = very big
• sangat cantik = very beautiful

So in Orang itu sangat kaya:

• orang itu = that person
• sangat kaya = very rich

Kaya is an adjective meaning rich or wealthy.

In Malay, adjectives can come directly after the noun phrase they describe in sentences like this:

• Dia kaya = He/She is rich
• Mereka miskin = They are poor

So kaya is the describing word in the sentence.

Yes.
Orang itu kaya means That person is rich.

Adding sangat just strengthens it:

• Orang itu kaya = That person is rich
• Orang itu sangat kaya = That person is very rich

So sangat is optional if you do not want the extra emphasis.

Usually, for that person, the natural phrase is orang itu.

So the standard sentence is:

• Orang itu sangat kaya

Itu orang may appear in speech in some contexts, but it often sounds more like pointing someone out emphatically, similar to that person there or that one. For a learner, orang itu is the safest and most standard choice.

A simple learner-friendly pronunciation is:

• orang ≈ oh-rang
• itu ≈ ee-too
• sangat ≈ sah-ngat
• kaya ≈ kah-yah

A rough full pronunciation:

• oh-rang ee-too sah-ngat kah-yah

A few notes:

• r in Malay is usually lightly rolled or tapped.
• a is usually pronounced clearly, more like ah than the English ay.
• Stress is usually not as strong or dramatic as in English.

In this sentence, orang itu is normally understood as that person, so singular.

Malay often does not mark singular/plural as clearly as English does. Context is important.

Compare:

• orang itu = usually that person
• orang-orang itu = those people / the people
• ramai orang = many people

So yes, orang can mean people, but here the most natural reading is singular.

Yes. Kaya can be translated as rich or wealthy.

• rich is the most direct and common translation
• wealthy is a slightly more formal English choice

So:

• Orang itu sangat kaya = That person is very rich
• also possible: That person is very wealthy

Yes, but sangat is one of the most standard and useful choices.

Other possibilities include:

• amat = very, rather formal
• terlalu = too / excessively
• memang = really / indeed, but not exactly the same as very

Examples:

• Orang itu amat kaya = That person is very rich (more formal)
• Orang itu terlalu kaya = That person is too rich / excessively rich (different meaning)

So for this sentence, sangat is a very natural choice.