Malaysia is a federal constitutional monarchy in Southeast Asia. It consists of thirteen states and three federal territories.
The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. Malaysia is located near the equator and has a tropical climate. It has a biodiverse range of flora and fauna, and is considered one of the 17 megadiverse countries. Malaysia contains numerous islands, the largest of which is Labuan. The local climate is equatorial and characterised by the annual southwest (April to October) and northeast (October to February) monsoons. The temperature is moderated by the presence of the surrounding oceans. Humidity is usually high. Kuala Lumpur is the official capital and the largest city in Malaysia. Putrajaya is the federal administrative capital. Although many executive and judicial branches of the federal government have moved there (to ease growing congestion within Kuala Lumpur), Kuala Lumpur is still recognised as the country's legislative capital since it houses the seat of the Parliament of Malaysia. It is also the main commercial and financial centre of the country.
Malaysia's foreign policy is based on the principle of neutrality and maintaining peaceful relations with all countries, regardless of their political system, and to further develop relations with other countries in the region. It attaches a high priority to the security and stability of Southeast Asia, and has tried to strengthen relations with other Islamic states.
Malaysia is a relatively open state-oriented and newly industrialised market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans. Malaysia is an exporter of natural and agricultural resources, the most valuable exported resource being petroleum. At one time, it was the largest producer of tin, rubber and palm oil in the world. Manufacturing has a large influence in the country's economy, although Malaysia’s economic structure has been moving away from it. tourism has become Malaysia’s third largest source of income from foreign exchange, although it is threatened by the negative effects of the growing industrial economy, with large amounts of air and water pollution along with deforestation affecting tourism.