Malaysia has a parliamentary system of government where the head of government and cabinet are chosen from the majority party in parliament. The party that wins the most seats forms the government. Parliament has the authority to create and amend laws through a legislative process that involves bills being read and debated in both the Dewan Rakyat and Dewan Negara. Some of parliament's functions include legislative power to create or repeal laws, imposing and changing taxes, and approving the annual budget. However, parliament's legislative powers are limited by the constitution in certain areas like Islamic, Malay customary, and native laws of Sabah and Sarawak.