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Malaysia is a federation of thirteen states and three federal territories, which form the primary administrative divisions of the country. Eleven states and two territories are part of Peninsular Malaysia, while two states and one territory make up East Malaysia. Nine of the Peninsular states have monarchies, with the other four having appointed governors. State governments are led by chief ministers, who are appointed by the monarch or governor, provided they have the support of a majority in the state legislative assembly. The federal territories are governed directly by the national government.
Malaysia was formed through the union of various territories ruled by the United Kingdom. The federal system was created to maintain the status of the Malay sultans, who were the rulers of British protectorates in the Malay Peninsula. The Federation of Malaya was created in 1948, uniting these protectorates with two directly ruled British colonies. Malaya became independent in 1957. In 1963, Sabah and Sarawak, along with Singapore, joined with Malaya to form Malaysia. Singapore was expelled in 1965. The three federal territories were created later, from land separated from existing states.
The national government wields unusually extensive powers for a federation. The national constitution grants it wide powers, including over economic development and internal security. Decades of uninterrupted rule by the Barisan Nasional coalition led to a further centralisation of power. State law must align with federal law, and the national government has various ways to exert formal and informal control over state governments. With limited means to generate revenue, states remain heavily dependent on federal funding. Federal institutions with overlapping mandates allow the national government to influence areas constitutionally reserved for the states, and the national government controls the civil services of most state governments.
Sabah and Sarawak differ significantly from the other states, being geographically separate and having very distinct demographics, economies, and politics. Both have more extensive autonomy than other states, which was negotiated as part of the federation process and set out in the Malaysia Agreement. Both states maintain control over a number of competencies assumed by the federal government in other states. They also have greater fiscal powers, independent legal and judicial systems, and their own immigration regimes.