The Federation of Malaysia is a constitutional elective monarchy. It is nominally headed by the Paramount Ruler or Yang di-Pertuan Agong, commonly referred to as the king. King is selected for five-year terms from among the nine Sultans of the Malay states; the other four states, which have titular Governors, and the Federal Territory state do not participate in the selection.

The system of government in Malaysia is closely modeled on that of Westminster, a legacy of British colonial rule. In practice however, more power is vested in the executive branch of government than in the legislative. The general election must be held at least once every five years. The political party or coalition of political parties winning majority (more than 50%) of the parliament seats will form the ruling government.

Executive power is vested in the cabinet led by the prime minister (Perdana Menteri); the Malaysian constitution stipulates that the prime minister must be a member of the lower house of parliament who, in the opinion of the Yang di-Pertuan Agong, commands a majority in parliament. The cabinet is chosen from among members of both houses of parliament and is responsible to that body.

The bicameral parliament consists of the upper house (Dewan Negara, literally "National Hall") and the lower house (Dewan Rakyat, literally "People's Hall"). All 69 Senators sit for 6-year terms; 26 are elected by the 14 state assemblies, and 43 are appointed by the king. The 222 members of the House of Representatives are elected from single-member districts by universal adult suffrage, for a maximum term of 5 years. Legislative power is divided between federal and state legislatures.

The state governments are led by chief ministers (Menteri Besar) selected by the state assemblies (Dewan Undangan Negeri) advising their respective sultans or governors.