1. Home
  2. Global Insights
  3. By Country
  4. Malaysia
  5. Government

Malaysia: Government

Key Figures

Chief of State:
King Sultan Abdullah Sultan Ahmad Shah
Head of Government:
Prime Minister Ismail Sabri Yaakob

Overview

Government Name:
Malaysia
Constitution:
Adopted: 1957; Establishes the Federation as a constitutional monarchy with the role of Yang di-Pertuan Agong (Head of State) being largely ceremonial. It also provides for the establishment and the organization of three branches of the government: the bicameral legislative branch (Parliament) which consists of the House of Representatives (Dewan Rakyat) and the Senate (Dewan Negara); the executive branch led by the Prime Minister and Cabinet Ministers; and the judicial branch.
Government Type:
Constitutional Monarchy
Malaysia Flag
Coat of Arms of Malaysia

Index of Economic Freedom

Grades each country on a scale of 0 to 100, based on ten freedoms, with 100 representing the greatest amount of economic autonomy from government intervention. Source: Heritage Foundation (2019)

Country Risk Rating

A4
A somewhat shaky political and economic outlook and a relatively volatile business environment can affect corporate payment behavior. Corporate default probability is still acceptable on average. Source: Coface (2022)

Government Branches

Main Powers Election Process Election Cycle 1
Executive

The King is largely a ceremonial role and is head of state. The prime minister is the head of government, leads the cabinet of ministers and can choose to not appoint a Deputy Prime Minister if they so please.

Monarchy is elected by hereditary state rulers. The prime minister is designated by parliament.

At least once within 5 years
Judicial

The highest court and the final appellate court in Malaysia.

Justices appointed by the monarch on advice of the prime minister.

Mandatory retirement age of 65
Legislative

The Dewan Negara reviews legislation that has been passed by the lower house. If the Dewan Negara rejects a bill, it can delay the bill's passage by only a year before it is sent to the King. The Dewan Rakyat is the lower house of parliament - all bills must be passed by both houses before they are given Royal Assent.

The Dewan Negara has 44 members that are appointed by the monarch, 26 members are elected by state legislatures. The Dewan Rakyat members are elected by plurality vote in single-member constituencies.

Dewan Negara: 3 years; Dewan Rakyat: 5 years

Regional Trade Blocs
APEC
ASEAN
TPP

International Organization Participation [2]

Environmental Agreements [3]

Tax Information [2]

Tax Authority:
Royal Malaysia Customs Department
Tax Name:
GST

Sources:

  1. ElectionGuide http://www.electionguide.org/
  2. EY, http://www.ey.com
  3. CIA World Factbook, https://www.cia.gov/the-world-factbook/
  4. U.S. Bilateral Relations Fact Sheets http://www.state.gov/r/pa/ei/bgn/