The government system is a constitutional monarchy; the chief of state is the king, and the head of government is the prime minister. Malaysia has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation. Malaysia is a member of the Asia-Pacific Economic Cooperation (APEC), the Association of Southeast Asian Nations (ASEAN), and the Trans-Pacific Partnership (TPP).

In 1511, Malacca fell into the hands of the Portuguese and that was the beginning of the colonial era in Malaya. After that, Malaya fell into the hands of the Dutch in 1641 and British in 1824 through the Anglo–Dutch Treaty. British colonization was the longest compared to others. The British had integrated all the Malayan administration which was previously managed by the Malay Rulers with the help of state dignitaries. The British intervention had aroused dissatisfaction among the local population. Some individuals rise up against the colonial yet it was easily defeated by the British as their efforts were more towards individuality. Among the heroes that went against the colonialists were Dol Said, Tok Janggut, Datuk Bahaman, Rentap, Dato Maharajalela, Rosli Dobi and several others.

During the 1920s and 1930s, many residents of Malaya had started to receive education, either from the Middle East or local education. As a result, this educated group had appeared to fight in the name of nationalism. They used media such as newspapers and magazines to spread their ideology. There were also among them who had formed Associations such as the Kesatuan Melayu Muda (KMM) and Kesatuan Melayu Singapura (KMS) which were aimed at driving away the invaders and formed their own Government. When the people of this country were so eager to end the invasion, they were jolted by the Japanese landing at the end of 1941 which brought Malaya to another colonial era. Japan had occupied Malaya until 1945 before surrendering as a result of the bombings of Hiroshima and Nagasaki.