Under Brunei's 1959 constitution, the Sultan is the head of state with full administrator authority, including emergency powers since 1962. The Sultan is assisted and advised by five councils, which he appoints. A Council of Ministers, or cabinet, which currently consists of nine members (including the Sultan himself), assists in the administration of the government. The Sultan presides over the cabinet as Prime Minister and also holds the positions of Minister of Defense and Minister of Finance. One of the Sultan's brothers, Prince Mohamed, serves as Minister of Foreign Affairs.

Brunei's legal system is based on English common law, with an independent judiciary, a body of written common law judgments and statutes, and legislation enacted by the sultan. Most cases are tried by the local magistrate's courts. More serious cases go before the High Court, which sits for about 2 weeks every few months. Brunei has an arrangement with the United Kingdom whereby United Kingdom judges are appointed as the judges for Brunei's High Court and Court of Appeal. Final appeal can be made to the Judicial Committee of the Privy Council in London in civil but not criminal cases.

The Government of Brunei assures continuing public support for the current form of government by providing economic benefits such as subsidized food, fuel and housing, free education and medical care, and low-interest loans for government employees. The Sultan said in a 1989 interview that he intended to proceed, with prudence, to establish more liberal institutions in the nation and that he would reintroduce elections and a legislature when he "[could] see demonstrate of a genuine interest in politics on the part of a responsible majority of Bruneians." In 1994, a constitutional review committee submitted its findings to the Sultan, but these have not been made public.