The Dewan Negara may initiate legislation, except for financial and fiscal matters - a regulation directly from the Westminster system. It may also amend legislation, provided it does not deal with financial matters.
Any proposed legislation must first be passed by the Dewan Rakyat. Then it is presented to the Dewan Negara in three (3) readings. At the first, the legislation's proposer presents it to the assembly. At the second, the bill is debated. At the third, a vote is taken whether to pass or reject the bill.
The Dewan Negara may not formally reject bills. It is only allowed to delay their passage by one month, or up to a year under certain circumstances. After the bill has passed or the requisite period is up, the bill is presented to the YDPA for royal assent. If the YDPA objects or 30 days pass without royal assent, the bill is sent back to Parliament with a list of suggested amendments. The bill must then be reapproved by both houses of Parliament. If the YDPA still does not grant royal assent 30 days after it is presented to him again, the bill automatically becomes law. It does not take effect, however, until it is published in the Government Gazette.
Although members of Parliament typically have legal immunity when it comes to freedom of discussion, a gag rule forbids discussion about certain articles of the Constitution such as the status of Bahasa Melayu as the national language of Malaysia and Bumiputra privileges in Article 153.
